Evening star., 1948-02-25
Heads Of Both Partie!
Quick 10 Approve
Steel Price Inquiry
BY the Asseeiaisd Press

Off1cial criticism of the steel
price increase mounted today as
the Government hunted for
signs of q new infiationary
spiral.
President Trumans order, which
sent FBI agents digging into steel
industry records for evidence of pos
sible antitrust law violations, won
quick approval of Republican and
Democratic leaders alike.
Senator Taft, Republican, of Ohio
told reporters he was glad to see''
the administration taking steps to
determine whether the law was vio-
lated. Senator Taft is chairman OF
the Senate-H House Economic Com
n1ittee which has summoned three
steel industry leaders to a hearing
next Tuesday.
Senate Minority Leader Barkley
said: Everybody Is wondering why
the terrific price increase was made.
The people are entitled to know
whether it was justified"
And the Republican Governor of
q leading steel State, James H.
Duff Of Pennsylvania, said the price
increase showed a shocking dis
regard for the. national welfare"
Mr.. Truman's call for q full-scale
investigation went to three agencies
the Justice and Commerce De-
partments and the Council Of Eco
ronaic Advisers.
The focal point Of inquiry is last
weeks $5-a-ton increase In semi
finished steel prices.
/. But 1t was learned that the Eco
snomic Council will dig deeper in
trying to measure the impact of
steel prices on imitation. Recent in
creases in the price Of nails, iron
pipe, structural steel and other prod
ucts will be considered as well,
Chairman Edwin G. Nourse said.
This Is only one episode in q
series Of increases In the last few
weeks" DR.. Nourse told a reporter
1--WE will be prepared with a report
for the President shortly after he
returns"
Mr.. Truman is due back in WASH
ington from his Caribbean vacation
March 5.
The 16 steel companies whose ex-
'ecutive offices were visited by FBI
men yesterday were officially silent
On the surprise move.
Privately, however, one industry
source expressed "amazement" at
the uproar caused by the IS in
crease. He said 1t affected so far
only 5 per cent of output.
The Justice Department was
silent, too. on its findings. 1t left
unanswered whether Attorney Gen.
eral Clark plans to carry out his
six-month-old threat to demand
jail sentences II any case of collu-
sion develops affecting housing costs.
The tough" antitrust policy was
announced last August IL. Mr..
Clark said the department would
apply 1t wherever 1t found q con-
spiracy to maintain or raise prices
In the food, clothing or housing
fields.
FTC Complaint Heard,
II the. Justice Department decides
Il has an antitrust case as a result
Of last weeks price increase, the
steel industry will find itself defend
ing two Federal price-fixing suits.
A Federal Trade Commission COM
plaint now is being heard in WASH
ington. 1t was hled last sAusuSt
against the American IRON a Ht&l
Instituse and iol Individual defend
ants
The steel trade weekly, Iron Age,
guessed at $6s, 900 900 q year the
total increase In costs to steel buyers
within recent weeks. This repre-
sents the rise In semi finished steel
and the other increases. It does
not represent the final cost to con-
s,irners, however, If the increase Is
passed on through higher price tags
on autos, washing machines, frying
pans and new houses.
Steel people said they thought
last weeks move alone would not
add up to more than $4,000, 900.
They noted that perhaps only 3,o0o,-
600 tons of steel a year is affected
thus far.
That Is the amount sold by big
companies to smaller fabricating
Arms. The other $4,000 900 tons of
annual output is fabricated-that is,
rolled into sheets or otherwise made
ready for manufacture into finished
products-by the large companies
themselves. These have not stated
whether they will increase the price
of fabricated nrndIlcfs accnrdinolv