Evening star., 1938-06-25
MONOPOLY PROBE |
IS LIKELY TO CALI
BIG STEEL FIRST.
Disclosure Follows Slash
in Prices by Two of is.
Steel Subsidiaries.
HEARINGS ARE HELD DUE
TO BEGIN IN SEPTEMBER
Stettinius Denies Collision in
Cuts-Stimulated Demand
Is Hoped, Firm Says.
~ the Associated Press.

~ the Associated Press.
The administration monopoly in
vestisators disclosed today, on the
heels Of a price slash by United States
Steel Corp and two leading independ-
ents that big steel probably would be
the first company haled to public hear
ings.
They said they expected to start
public hearings in September. In
the meantime, data will be gathered
and preparations made for the most
extensive inquiry of this generation
into trusts, price-fixing and allied sub.
jects.
1t was learned that Edward r. Stet.
tinius, youthful chairman of the Steel
Corp. had talked Informally about
steel prices to several Of the New
Deals most confirmed "trust-busters"
within the last week.
Mr.. Stettiniu was reported to have
conceded that prices of steel COM
panies were fairly uniform, but to
have denied collusion. He explained
that when United States Steel sets 4
price, its competitors frequently follow
the example, and that when another
company sets lower prices. the others
do likewise for competitive reasons.
Prices Back at 1928 Level.
United States Steel announced yes-
terday cut that returned steel prices
TO about the 1928 level. 1t was made.
a company statement said. with the
hope it would stimulate demand for
steel products.
The price reductions we're made BY
Carnegie Illinois Steel Corp, largest
unit OF United States Steel, and the
Tennessee Coal, Iron & Railroad Co.,
a Southern unit with headquarters at
Birmingham.
A suggestion that the MONOPOLY IN.
quiry be aimed primarily at deterrnin-
ing means Of breaking up arttfcial
price structures came from Senator
Borah. Republican. of Idaho, one OF
the IL congressional and administra-
tive members of the investigating
board.
Senator Borah said he considered
price fixing. either by a single mo-
nopolistic concern or a group of large
concerns within one industry, the
kernel Of the nut of the monopoly
question.
New Approach Sought.
The Idahoan, who has campaigned
for new antitrust legislation for many
years, said he thought a new approach
to the problem must be taken.
One suggested new approach" 1t
was learned in another quarter. Is a
system of separate laws for different
types of industry. This has the back
ing Of Assistant Attorney General
Thurman Arnold, another board mem.
Der. Senator O'Mahoney, Democrat,
of Wyoming, probable chairman of the
group. and Senator Borah have pro-
posed a system of Federal licensing of
corporations as q means Of enforcing
antitrust policies.
President Roosevelt described the
inquiry in last nights "fireside chat"
as an effort to find a path through
the jungle Of contradictory theories"
He said that. while preserving the
profit incentive, industry must con-
tinually seek improved practices"
Monopoly Probe Fear Seen.
The steel price cut drew from Sem
ator Bulkley, Democrat, of Ohio the
comment that Big Steel may be try
ing to get a little ahead of the mo-
nopoly investigation" Senator George,
Democrat, of Georgia hoped steel
wages would not be affected. The
steel corporation said the cut had no
connection with wages, although in
recent mcnths steel men have said
there could be no reduction in prices
without lower wages.
The monopoly investigating board
will organize formally early next week.
Its personnel was completed yesterday.
Other members, in addition to SEN
ators O'Mahoney and Borah and As
sistant Attorney General Arnold. are
Richard c. Patterson, jr., Assistant
Secretary Of Commerce; Isador Lubin,
commissioner of labor statistics;
Jerome Frank, securities commissioner,
alternating with William o. Douglas,
commission chairman; Herman OIL
phant, general counsel Of the Treas
ury, with Admiral c. J. Peoples of the
Treasury Procurement Division as his
alternate; Chairman Garland S. Fer
guson of the Federal Trade Commis.