Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-11-11
Weir and Hook Denv
Steel Firms Enjoy
Price Protection
Recent Losses Cited
As Evidence of Stiff
Competition
BY the Associated Press.

BY the Associated Press.
Two nationally known Industrial
ists-Ernest T. Weir and Charles R.
Hook-vigorously commended before
the Federal Monopoly Committee
yesterday that the iron and steel
industry was highly competitive.
Mr.. Weir, president of the Amer
lean Iron and Steel Institute and
chairman of the National Steel
Corp, emphatically denied a sug-
gestion by Leon Henderson, COM
mittee member, that success of his
company was due to a price UNI
brella" held over it by larger cor
porations. He also attributed the
losses suffered by some concerns in
the industry in recent years to Eek
IRENE competition.
Mr.. Hook, former president of the
National Association of Manu-
facturers and head of the American
Rolling Mill Co., defended the right
of his company to include mini
mum price" in agreements for COM
petitors to use the company's pat
ented process of rolling steel into
sheets.
Questioned by Henderson.
Mr.. Weirs testimony featured a
running exchange with Mr.. Hender-
son, Securities and Exchange COM
missioner, who ranks high among
administration economists.
Mr.. Henderson asked Mr. Weir If
some of his success in building up
National Steel had resulted from
IAN umbrella on prices held by
larger corporations"
II don't think that's true" Mr..
Weir replied quickly. They have
never held an umbrella over us. II
I were sitting in this industry pro-
tected by somebody holding an
umbrella, I wouldn't feel very COM
Portable"
Mr.. Weir was asked why his COR
poration had been able to realize
a profit in each of recent years,
while the United States Steel Corp,
largest unit, and the industry in
general had sustained losses.
The steel leader said it probably
was easier" for a moderate-sized
corporation to make a profit than
for one as large as United States
Steel.
Later questioning developed that
Mr.. Weir'S company had relatively
large production of steel products
for the automobile and canning in
dustries, while larger competitors
suffered from lack of demand for
steel products used by railroads,
heavy construction and kindred in
duStries.
Sees Expansion Obstacles.
Clarence Avilden, committee men,
Der representing the Commerce De-
partment, complimented Mr.. Weir
on his foresight in entering steel
production fields that have ex-
banded in recent years.
I can't see how you can have
more competition in the steel indus
try without running it, Mr.. Weir
said, adding that the industry would
be unable to finance future expan-
sion and development if it continued
to show losses.
He said steel corporations had in
vested more than $1,000, 100000 in
recent years in new plants and
equipment.
We've put 500, 600, 900 into the
Detroit plant and it's not completed
yet" he said of his own company.
Mr.. Hook explained that the
American Rolling Mill Co. patented
its process for rolled steel sheets in
1925 and then licensed this method
to competitors in this country and
Europe, on a royalty basis.
The witness said the new process
had cut costs of automobile tenders
from $135 a ton under the old hand
labor method in 1923 to $50 q ton
this year.
Mr.. Hook said a minimum price
provision was included in these
license agreements because of the
possibility that some competitor
might use the process to cut prices
and ruin" the sheet steel business
Of his company.