Compromise In U.S. Steel Dispute

Press, Volume CV, Issue 30952, 7 January 1966, Page 9

Compromise In U.S. Steel Dispute

President Johnson yesterday refused a five-dollar-a-ton price increase for structural steel, but agreed to a 2.75-dollar rise.

The United States Steel Corporation, which announced the compromise agreement, had officials in Washington testing the Administration’s attitude and the Administration had people in contact with steel producers. Unlike President Kennedy in the steel dispute of 1962, [President Johnson never let I the controversy reach the point at which a compromise would have been impossible. Both sides knew during the five days after the Bethlehem Steel Corporation’s announcement of a five-dollar increase, followed by a similar announcement by Inland Steel, -hait President Johnson would accept any settlement which did no real damage to the Administration’s antirnflation guidelines for wage and price adjustments. The United States Steel Corporation decided on a price boost only about half i as big as Bethlehem’s and offset, in part, by a cut in the price of cold-rolled sheet steel which competes with Japan-ese-made steel on the United States west coast. i The chairman of the pre-

isident’s council of economic advisers, Mr Gardner Ackley, applauded the moves as “generally consistent with the price-wage guideposts.”

Bethlehem cancelled its five-dollar increase and Inland Steel said it would revise its price “to be competitive.” Administration officials and most segments of the steel industry were visibly relieved.