Evening star., 1949-12-16
Probe Almost Certain
To Result From Rise
In Prices Of Steel
Continued From First Page.)

Continued From First Page.)
minimize so far as possible fur
ther fluctuations in our prices,
at least for the foreseeable fu-
ture. to the end that our custom
ers and our subsidiaries may base
their planning on a sound and
realistic foundation"
In the third quarter of this
year. 81 leading steel companies
reported earnings of $108,665,219.
That was nine per cent below the
$l20,150,302 earned in the same
three months of l948.
Senator O'Mahoney's View.
This is what Senator O'Ma-
honey says of the financial side
Of the picture:
The profits records of the steel
industry indicate absolutely that
an increase in the price of steel
at this time would be absolutely
out of line. 1t will do the steel
industry no good to try to pre-
serve its security if it touches off
chain reaction which will
weaken the economy"
Most top steel producers with
held comment on Big Steers ac-
ton. However. j. L. Block. vice
president in charge of sales Of
Inland Steel Corp. declared m
land believes higher prizes are
necessary to make up for in
creased costs"
In Detroit, where automotive
circles expressed little surprise at
the boost, a spokesman said its
effects won't be known until it
is learned specifically just how
the increase applies to types of
steel used by car manufacturers
Auto Costs to Go Up.
The American Iron and Steel |
Institute said the cost of the steel
in autos would 60 up about ST.
But in Pittsburgh, a steel indus |
try spokesman who asked not to
be identified, estimated the in
crease in the cost of an auto at
$40 to $50.
The competitive position of
many companies will have a lot
to do with any increases. That
will hold good in many lines. in
addition to autos. Some manu-
facturers may chose to absorb
some. if not> all of the price in
crease.
While Mr.. Murray and top CIO
United Steelworkers' officials were
studying Big Steel's action, at
least one big local of the union
criticized the steel rise-and /.
pumped for a wage boost.
Calls for Wage Increase.
Lower Cambria Local 2644 at
Johnstown. Pa. passed a resolu-
ton calling for a general wage
hike. The 3,800-man local, whose
members work for Bethlehem Steel
Corp, said the steel price hike
ultimately would wipe out the
gains the union obtained in its
strike-ending contract last month
The steelworkers nov average i
$1.65 an hour. Mr.. Murray
wanted an increase for his men I
this year. He gave up the de-
mands. however, when presiden-
tial fact-finding board ruled
against him and suggested a 10
cents hour pension and welfare
package. /
Although the board turned down
Mr.. Murray's plea for a wage
boost, it declared:
However. with Increased eff
cheney and lowered costs resulting
from the plant modernization
program, and with no greater de-
crease in the demand for steel,
there should be continued and
higher profits for (steel COM
panies).
IF these profits do not result
In benefit to the consumer in the
form of lower prices, there would
be justification for the union to
renew it's demand for increase OF
wage rates in order to better par
ticipate in the industry's pros
perity."
Under the current steel con-
tracts the union may ask Novem-
ber /, 1850. for d renegotiation of
wages. The union may strike
January l, 1851, if no agreement
Is reached. /