The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-03-25
STEEL PRICE
FIXING PROBE
NEARING HEAD
Roosevelt Soon to Decide
on Action in Major
Railroad Phase.
QUIZ STILL GOING ON
Antitrust Law Violation
Hlnted; Legislation May
Be Recommended.
BY MARSHALL MCNEIL
Times Special Writer


WASHINGTON, March 25.-The
administration soon will have to de-
eide whether its department of
justice shall act as the result of its
inquiry into the maintenance of
steel rail prices over several years.
And if the department does not
act, the interstate commerce com
mission may take over the inquiry.
This is a major phase of the rail-
road problem that slowly is coming
to a head.
President Roosevelt is expected
soon to recommend legislation to
congress not only to help distressed
railroads. but also for the benefit of
thousands of savings banks deposit
ors and life insurance policy holders
whose institutions hold railway
securities. and to aid railway work
ers.
The investigation to determine if
there is any violation of the anti
trust laws in the maintenance of
steel rail prices at a high level, be-
gun under the Hoover administra-
ton, still is in progress in the de-
partment Of justice.
Reduced Only SO
Agents here are said 10 be pre-
pared to lay the matter before
Homer Cummings, acting attorney
general, for a decision as to policy.
A group of steel men is expected
here soon TO seek information about
the case.
The price of steel rails was main
tanned at $43 ton from about 1923
until last year, when it was reduced
to $40, in the hope of inducing
heavier purchases by the railroads.
This hope has not been fulfilled to
any great degree.
During the same nine-year period.
and more particularly since the de-
preston set in, prices of other iron
and steel products and of commodi-
ties generally have swung down
ward. But steel rails, as Joseph B.
Eastman, as interstate commerce
commissioner, has said, have been
maintained near the pinnacle by
the stubborn will of producers with
out insight or vision
Forced to Push Inquiry
Indeed, it was the I. c. C. which
was credited last year with suggest
ing the steel rail price inquiry to
the then attorneys general, William
D. Mitchell. Senator James Couzens
rep, Mich0 mentioned the facts
in the senate. and this caused
Mitchell to push the inquiry. But
no action has been taken yet.
While President Roosevelt is
working out his program, the house
interstate and foreign commerce
commission has reported out bills
repeating the recapture clause Of the
transportation act, revising the base
for rate making, and regulating
railway holding companies.
These, which were recommended
months ago by the I. c. c., can be
regarded as part of the Roosevelt
program. But while they are import
ant, they do not go deep into the
roots Of railroad distress.
Law Not Yet Used
One measure intended to provide
help was the bank
ruptcy bill passed at the last session
of congress, providing new means
for recognizing railroads, and the
scaling down of top-heavy capital
But, so far as could be
determined today, this law has not
been used yet.
AS the Roosevelt program takes
form, railway labor is demanding a
thorough congressional investigation
Of their industry. New arguments
for this apparently are presented in
the pending wage controversies be-
tween the arrangements Of the
Rock Island and Illinois Central
and their employees.
These carriers requested their
to contribute one sixth of
their pay for March and April. The
Labor Executives Associa-
ton instructed the men to refuse to
sign any pay waivers. Apparently
an agreement has been reached with
the Rock Island.
Called "Brazen Defiance"
But A. F. Whitney, president Of
the labor executives association,
said that the Illinois Central man
agement has declined to Withdraw
It's request that their employees per-
nit deductions in their pay checks
In this weeks Labor, published by
organization, the roads
request is called "brazen defiance
Of legislation enacted by congress
the railway labor act and related
Statutes-and sweeping decisions of
the United States supreme court,
and in fragrant violation of their
signed agreement, which reduced
employees pay Is per cent.
Whitney said that offices have
been assigned to prosecute the
matter with instructions that it be
to thee United States board
of mediation at once, if a settlement
oFfaofaI