Evening star., 1942-04-20
Two Steel Firms Sued
On Priorities CHARGES
Made by W.P.B.
lnjunctions Asked Against
Curneeie- Illinois and
Jones & LouehIin
Fy the Asaoe iatsd Press.


~ the Assoc iated Press.
Attorney General Biddle an
nounced today that the Justic,
Department had fled suit II
Federal District Court at VII.
mington, Del, and Pittsburgh
seeking TO enioin the Carnegie
Illinois Steel Corp. and thu
Jones 81 Laughlin Steel Corp
from violating priorities fixed b.
the War Production Board.
The suits, involving more thar
one-third OF the total steel produc
tion Of the Nation. we're the FIRST u
be instituted under the War Produc
tion Boards priorities program.
The departments action wa
taken on Recommendation of w. p
B. General Counsel John Lore
O'Brian.
Injunctions were sought to enjoir
the two companies from accepting
holding. using producing, manufac-
turing, distributing. delivering OF
dealing with or in" iron, steel, OF
iron and steel alloy products, OF
filling, accepting or delivering orders
for these products otherwise thar
in accordance with" w. P. 3. orders
Would Command Compliance.
The suits further would command
the two companies to comply with
ell w. p. B. regulations and orders
The suits charged that unless the
steel COMPANIES were "entoined, their
continued failure to comply with
such regulations and orders Will
make impossible effective and Or
derly administration Of the w. P. B
program 70 the detriment Of maxi
mum efficiency in the prosecution OF
the war"
In asking the Justice Department
TO seek injunctions against Car
negie- Illinois and Jones e. Loughlin
the w. p B. accused them of "re-
peated, deliberate violations" of pri-
critics regulations from May, l94l
until the present.
At a press conference March 6, it
was recalled, William H. Harrison,
w. p. B. production director, dis
closed that President Roosevelt's
"blueprint-for-victory" shipbuilding
program was about 10 vessels be-
hind in February because of "the
steel that wasn't available in Sep
tember, October and November"
Bills of Complaint.
Officials said the most serious vio-
iations charged to the two companies
occurred during the latter part OF
1e41. w. P. 3. accused them of un-
authorized deliveries Of steel plate,
which is subject to stringent pri-
ority control and earmarked ex-
clusively for military use.
"The violations resulted in
diversion by the two firms to their
private customers of large quantities
of critically needed iron and steel
at the expense Of the needs Of the
armed forces and the Maritime
Commission" w. P. B. charged.
The complaint against Jones g.
Laughlin, fourth largest steel
producer in the country, said the
company continually refused to
comply with o. p. M. and w. p. B.
orders, 'in its own and its favored
customers interests, without regard
for military necessity or essential
civilian requirements"
As late as the first half of March,
the w. P. B. charged. "a per cent
of Jones & Laughlin's deliveries
were made on orders bearing a pri-
ority rating of A-9-next to the
lowest military priority rating-or
lower, while higher rated orders
were deferred.
Company Head Surprised"
The company's president, II. E.
Lewis, said at Pittsburgh he was
surprised at the boards statement.
Most of the firms shipments IN
March and April, he said, repre-
sented the requirements of the
Army, Navy. Maritime Commission
and leaSe-lend customers"
Nothing is being left undone by
our employees and management
he added, ito do our utmost in the
present crisis and we are and have
been breaking records repeatedly in
our an-out war effort"
Carnegie Illinois, largest steel
producer in the United States, was
accused of postponing production on
deliveries ordered by o. P. NJ. and
w. P. B. in favor Of civilian Gus
toners not entitled to preferential
treatment. In addition, w. P. B.
said the company established pro-
duction and delivery schedules
which gave first preference to GER
tain chosen customers, without re-
gard for the Government priority
ratings assigned to orders for mill
tary and essential civilian needs
Defeat for Policy Feared.
Unless Carnegie Illinois violations
are stopped, w. P. B. declared. Its
competitors will feel themselves
compelled by economic necessity
also TO refuse to comply with w.
P. B. regulations and as
a result, the declared policy OF Con-
greSs would be defeated"
J. L. Perry. president Of Carnegie
Illinois, categoricslly denied the
charge, saying his company is
complying fully with priority regu-
lations." and had received favorable
comments from the board itself.
In q statement made public here
Mr.. Perry said the firm has issued
4 manual to employees which has
attempted to interpret the various
and frequently conflicting orders oi
those charged with issuing pri-
critics.
To name this company as giving
preference TO customers OF its choice
without regard to war needs OF
preference ratings" he said, is 8
statement absolutely without foun-
cation."