Evening star., 1942-08-27
Kaiser
Continued From First Page.)

gigantic cargo planes for the Gov
eminent If he can find enough ma
terials, was not named personally
In the court order. Mr.. Gruener
said it grew out of investigation of
dealings of Willard P. Markle, a
Houston (Tex) steel broker who in
a consent decree signed here Mon
day was permanently restrained
from violating OPA ceilings.
The Markle investigation, in turn,
started when Frank Higgins, son
of the president of Higgins Indus
tries, Inc. New Orleans, publicly
indicated his firm was able to buy
steel products on 'black market" :"
Freight Charges Double.
In his statement today Mr..
Gruener continued:
Tn addition to the cost Of steel,
the profiteering methods employed
by the Builders Structural Steel
Co. and connived in by the Kaiser
Co., virtually doubled the freight
charges, and by the wasteful meth
DDS of shipping in less than carload
lots impeded the war effort by
slowing down the sorely taxed
transportation facilities of the
country.
'The President asked for an in
vestigation into the black market
in steel. Leon Henderson instructed
US to pull no punches We are
not through, but we are stopping
each violator as we find him.
I'VE intend to use every means
available to us to keep the steel
hawks from preying on the war in
dustries, but we do not intend to
let some of those industries feed the
hawks to gain their own ends. We
will not stop with mere injunctions.
Where we can bring suits for triple
the amount of the illegal profits
made by the profiteering sellers, we
will do so. Where we can revoke
their licenses to carry on business,
we will do so. And finally, where
we should institute criminal pro-
ceedlngs, we will do So"
100000 Pounds More Offered.
In addition to citing the 5O4 900
pounds of steel the Kaiser concern
allegedly purchased from Builders
Structural Steel at above ceiling
prices, a supporting affidavid by
Amos j. Coffman, OPA enforcement
attorney from Washington, asserted
the Cleveland firm on August 4 was
offering to sell Kaiser 100000 more
pounds at above-ceiling prices.
The Kaiser Co. was declared to
have paid an estimated S5.2l0 above
ceiling prices for the shipments it
received, as well as an estimated
double freight rate to California be-
cause the shipments were not full
carload lots.
The Cleveland warehouse also was
stated to have made approximately
S5,097 more than the legal price in
seven transactions with Mr.. Markle
totaling more than 100000 pounds
Mr.. Gruener said Mr. Markle did not
figure in the Cleveland concern s
asserted transactions with the Kais-
er Co, the seven transactions con-
stituting separate business. Mr.
Markle was not named in today s
order, the OPA official added, be-
cause he already Is permanently re-
strained from further violations.
Mr.. Coffman told reporters today s
steel case was ''the most fragrant
TO come to the attention of the
OPA." and that cleveland is one
of the largest black markets in steel
in the country. If by black market
you mean selling over. ceiling
prices
Kaiser Stands on Record.
In San Francisco Mr.. Kaiser sale
to besmirch legitimate concern
earnestly engaged in the prosecution
of the war effort"
He said the Kaiser Co., Inc. was
content to rely upon its genera
reputation and record and that wher
he completed his own investigation
if he found any errors had beer
made. the company would be de.
lighted" to work with the OPA tt
correct them. The general offices
had no knowledge OF any wrong.
doing, he asserted.
Mr.. Kaiser's statement continued
"The transaction referred to b,
the OPA regional Office was com
pleted at one of our branch office
by a former employe of the com
pany. There has not been an oppor
tunity to check the facts with re
spect to the purchase. Even If true
this proves that apparently ware
houses are bulging with steel and II
spite of the highest priority thi