Evening star., 1948-02-22
Steel IPriceJunlp
To Be Probed by
intComn1ittee
Commodity Slump
FuiIs to Affect Jobs,
CIogue Reports
DECLINING Grain Prices May In
crease Conservation need P. AS.
BY the Associoied Press

BY the Associated Press
Top steel makers will be asked
to explain their $5-a-ton price
increase next Thursday before
the Joint Economic Committee
of Congress.
Chairman Taft announced this
yesterday as unanimous de-
cision by the Senate House body.
1t came after Senator Ball, Repub-
lican, of Minnesota. suggested that
Attorney General Clark look into
possible antitrust aspects of the
increase.
The sudden upturn in steel found
Washington still trying to figure out
the meaning-in terms of jobs, busi-
ness, and inf1ation-of the early
February drop of food commodity
prices.
Employment is holding up strongly.
seemingly unhurt by the market
slump, Commissioner Evan S.
Clague of the Bureau of Labor Sta
tistics reported.
Next months Easter trade will
give businessmen a tip-off, Mr..
Clague said in his January job re-
port. 1t will offer some test" of
the public's attitude-whether con-
sumers will postpone buying in ex-
pectation of further price drops.
Typical Steel Leaders" to be Called.
Senator Taft, after a closed ses-
sion of the economic committee,
told reporters that two or three
typical steel leaders" would be
called in to explain their price
policy.
1T will be preliminary discus
sion to decide if we want to 60 into
this further" he said. Spokesman
for United States Steel Corp, Little
Steel" and independent producers
probably will be invited.
Senator Ball said the Justice De-
partment should look into the in
crease from the standpoint of price
colluSion. Il think it's a little
suspicious when the companies goI
up about the same amount at the
same time" he commented.
Senator Taft promised that the
steel price inquiry will not delay the
committees general economic re-
port, due March /. That document
may guide Congress approach to
new anti-infiation legislation.
Effect on Employment Cited.
In the BIS appraisal of the sag
in commodity prices, Mr.. Clague in
serted this comment: r.
A price decline, if long and widely
spread could induce both business
men and consumers to trim their
buying. Business might defer ex-
pansion plans.
A factor showdown for such rea-
sons, Mr.. Clague stated, would have
an important" impact on the Ma
tion's booming rate of employment.
January and early February saw
drop of 100000 In employment, he
said, but this appears to be purely
seasonal. He reported this job out
look:
THE underlying demand for labor
continues strong, and recent fluctua-
tions in commodity prices have had
no visible effect upon the employ
ment situation so far"
Price Trends Outlined.
These trends were noted:
l. So far the price declines have
been limited to a comparatively
small group of farm products. There
has been no evidence of lessening
in the firm effective demand for
goods and services"
2. Clothing and textile makers are
preparing for big Easter. Employ
ment in these industries hit new
postwar highs in January ,375, 900
in textiles and 1878, 900 in apparel
while most other industries suffered
the usual midwinter decline
3. A special BIS price study Fri
day, appraising the retail effect OF
the market break, gave this report
on consumer goods other than foods:
--latest reports from manufacturers
indicate no widespread declines and
some advances.
Bad Weather Called Factor.
The drop in non-farm jobs and
moderate" increase in unemploy-
ment was partly caused by unusually
bad weather, Mr.. Clague said. Fac
tory shutdowns resulting from the
shortage added to the number of
lay-offs.
Nonetheless. he reported: In
dustrial activity continued at very
high levels, and there were over a
million more non-farm jobs this
January than in the same month
a wear ago"