The Washington times., 1938-10-22
News Behind
The News
Blu Paul, MGLLOn-

A FTER what has happened in
"A steel, don't ask any official
around here about prices, unless
you want to get dizzy, too.
Favorite topic of the Wash
ington economists and polit1-
clans was prices-up to Wednes-
day. To them prices have been,
at different times. too low, too
high, out of line. To clean up
what they call "non-rigid" and
"monopolistic prices" the cur.
rent antimonopoly investigation
was Stared-and the price they
we're after more than any other
was the non-rigid (some said
monopolistic) price of steel.
Well, they got what they
wanted last week, only to find
out they did not want it. The
"non-rigid," "monopoHstic" price
OF steel broke. In fact it broke
twice, first down 81 a ton on
auto sheets (about 8 per cent?
and then later 50 more, for q
total Of So. Instead Of cheering
from the antimonopoly section
there came only official silence.
Twenty.four hours later the
IN on ri 81 d." "monopolistic"
steel price went back where it
started from. Cuts were elm
mated. While this should have
brought a chorus of boos, the
previous silence was only ampli-
fled.
THE key to this strange series
L Of political phenomena may
be found in a generally unre-
ported statement issued by one
who may be said to have an in.
terest in the steel industry him
self-Mr. Philip Murray, CLOS
spokesman in steel, right-hand
man to John Lewis.
In a public statement at
Cleveland, Mr.. Murray let it be
known he thought the cutting
OF the non-rigid steel price was
awful. His exact words were:
I'VE challenge the steel indus
try to assume leadership. The
Federal Administration should
offer its aid and cooperation
to the industry to avert the Ger.
tain consequences which must
follow from the present condi.
tlons in the industry. If the
steel corporations cannot put
their own houses in order, 1t is
the aVowed purpose of the or
ganized steelworkers to pro
mote q constructive legislative
program that will adequately
protect the interests of the in.
dustry and its workers"
THAT threat meant a Guffey
Il coal law for steel as plainly
as II the point had been specific.
The Guffey law, as you know.
made coal prices far more rigid
than monopoly by the simple
method Of having the Govern
ment proclaim them. What Mr..
Murray therefore said was that
II the steel industry could not
control its prices and keep them
up, the workers would go after
legislation to compel them.
This was not unnatural. Mr..
Murray knows that when prices
60 down. wages 60 down.
What must have bothered Mr..
Murray particularly was that
the industry, but not the public,
knew the price cutting had been
started by Independents who
have resisted CIO attempts to
organize them. It was auto buy
ing season. They thought they
could undersell the big shots
(Which, incidentally suggests
that If the steel industry is a
monopoly it didn't work this
time). Big shots recently fooled
them and followed suit, all very
quietly and unofficially but
effectively.
WHAT the Administration did
w about this particular case
cannot yet be described, but you
may grasp the idea. It all dates
back to q conference held last
February at the White House
Attending the President were
Lewis, Murray. Myron Taylor, ot
the Steel Corporation, Prof
Berle and Prof. Tugwell, and q
few others. The resident
wanted steel prices cut. Lewis
said nothing doing.
For q while there was nothing
doing, but thereafter a portly
gentleman, whose handsome
Irish face seems to be behind
every bush in Washington, a
Mr.. Thomas Corcoran, some
times called Tommy the Cork, {"
bobbed up among the indie.
pendentS. The price situation
is supposed to have started de.
veloping then when some of the
independents started under.
selling.
WHAT all this means is not
| w clear anywhere yet, except
that it obviously challenges the
preachmentS which have been
made about what prices are best
for the greater number.
The claSSiciStS here still will
insist, when they catch their
breath, that "hi-wages, lo-prices''
is not just a political formula
like ham and eggs" to chal-
lenge the thinking powers Of
the voters. Nor do they believe
the shutting of steel prices
proves the industry Is not a
monopoly. Say they, If steel
were not a monopoly the price
could not have been restored.