Evening star., 1948-01-08
Fully Public Hearings
Asked by Kaiser on
Steel Rationing Plans
BY the Assoeiofsd Press

Henry j. Kaiser, West Coast In.
dustrialist, today demanded gold
fish bowl" hearings on any plan for
voluntary rationing Of steel in order
to insure that small business and
new manufacturers viii not bs
starved to DEATH"
He urged the steel industry to
create an impartial anti-inhation
commission charged with policing q
voluntary agreement by industrial-
lists to distribute their products
fairly among all customers at rea.
sonable prices"
Otherwise, Mr.. Kaiser asserted in
q statement prepared for meeting
of top steel executives with Secre-
tary Of Commerce Hartman, "allo-
cations have the danger Of crushing
the little fellows in new enterprises. +"
wild Scramble" Already.
The conference was due to dis
cuss ALLEGATION Of steel under the
voluntary anti-infiation bill passed
by Republicans at the special ses.
sion Of Congress as q substitute for
President Truman's plan of COM
pulSory controls over scarce com.
modities.
Mr.. Kaiser, the wartime Ship
builder and now in the steel bust.
ness himself, said manufacturer
already are in a wild scramble to
prove the right of their particular
companies to allocations." He added:
I'VE must see that their claims
are made in the full light of public
hearings, and that steel producers
do not stif1e the competitive growth
Of the country by following histori-
cal patterns of distribution"
Suggests Baruch as Member.
Mr.. Kaiser said steel production
can be increased Immediately. Under
his plan, he explained, each steel
producer would pledge to produce
as much steel as possible and to
join industry-wide efforts to in
crease overall production"
He suggested that his proposed
steel anti-inflation commission con-
sist of national leaders who have
no conflicting present connection
with steel producers, steel consum-
ers or the Government"
AS possible members he named
Bernard Baruch, T-year -old adviser
to Presidents during two World
Wars; John Hancock, former mem
ber of the War Resources Board;
Owen D. Young, industrialist and
former member of the War Man
power Commission: former Senator
La Toilette of Wisconsin, former
Gov. Herbert H. Lehman Of New
York, Publisher Palmer Hoyt of
the Denver Post, President Robert
c. Sproul of the University Of CAL
ifornia, Economist Sumner H. Slich-
ter Of the Board for Economic De-
velopment, Lloyd Garrison, former
executive director of the War La
Dor Board; President Wilson NJ
Compton of Washington State Col
lege and Eric Johnston, head Of the
Motion Picture Producers Asso-
citation.
Gray Market Probed.
Mr.. Kaiser said any steel indus
try agreement should have "due re-
gard for the needs of small business,
new competitors. export require
ments under the Marshall plan and
for preventing possible diversions to
the gray market and nonessential
uses"
A special House committee has
been investigating reports Of a 81
00O, 900 ,000-a-year steel gray mar
ket, consisting of deals at above
normal prices. Such deals are not
illegal.
Steel company representatives
have discounted these reports and
the committee, headed by Repre-
sentative Macy, Republican, has re-
cessed its hearings to dig for more
information.