SERIOUS CHARGES

Wairarapa Times-Age, 20 April 1942, Page 4

SERIOUS CHARGES

AGAINST STEEL COMPANIES IN U.S.A. WAR PRIORITY REGULATIONS. VIOLATED “REPEATEDLY & DELIBERATELY.” (By Telegraph—Press Association—Copyright) (Received This Day, 12.15 p.m.) WASHINGTON, April 19. The War Production Board officially stated that America’s largest steel producer, the Carnegie Illinois Corporation, and the fourth largest producer, the Jones Laughlin Corporation, have ''repeatedly and deliberately violated the priority regulations and accepted profitable civilian orders, while they

have refused military orders.” The board added that the Justice Department will, through the Court, direct the companies to comply with the laws.

The War Production Board charges disclosed that Carnegie Illinois published and distributed among employees a manual instructing them to give preference to civilian customers, and to disregard Government priorities orders for military supplies. On February 21, the Government instructed the Jones Laughlin Corporation, by telegram, that the production cf oil pipes and casing tubing for civilian use must be halted, at latest by March 14, for urgent military reasons, whereupon the Jones Laughlin Corporation, who had hitherto not produced these pipes, immediately used large quantities of high-grade steel for the production of 570,000 feet of pipe and sold 88 per cent of the total production for civilian use.

The War Production Board concludes that the companies deliberately prevented industrial mobilisation for the successful prosecution of the war. It has been noted that the Carnegie Company is a subsidiary of the United States Steel Corporation.