Evening star., 1949-12-17
Senate Probe
OF Steel Prices
Due Next Month
Head of U. S. Steel
Defends Price Boost, j,
Welcomes Inquiry
By the Assoeioted Press

PITTSBURGH, Dec. 1.-THE
United States Steel Corp. is
anxious to tell congressional in
vestigators why it raised its steel
prices an average of 81 a ton. In
TACT, Benjamin F. Fairless, presi-
dent of the giant firm. says he
welcomes the opportunity to put
his cards on the table. He insists
he has nothing to hide.
And the man who demanded the
investigation, Senator O'Mahoney
Democrat, of Wyoming, is happy
Too.
Advised of Mr.. Fairless' state
nent yesterday, Senator O'Maho-
ney declared:
That's splendid. 1t clears the
way and I certainly shall recon-
mend to my committee that we
proceed and get the facts"
Sees Threat to Economy.
Senator O'Mahoney indicated
The Joint Congressional Economic
Committee he heads will start its
Inquiry soon after Christmas.
The Wyoming Democrat says
Big Steel's move threatens Amer
lca's economy. He's hoping other
steel companies will not follow
The leader of the industry. Gen.
orally. United States Steel sets
the pattern.
Senator O'Mahoney says Big
steel's action in boosting prices
affords other steel companies a
great competitive opportunity" :"
There's no indication that other
major steel producers will stand
pat on their present prices.
Already, Youngstown Sheet &
Tube Co. has said it will make
adjustments in its price struc-
sure soon.
Rising Costs Cited.
Rising costs O. ,.aterials, serv-
ces and labor leave no alternative
other than to compensate for
these additional COSTS" a Youngs-
town spokesman said.
That's the same reason Mr.
Fairless gave for his company's
action.
And last night National Supply
Go. at Pittsburgh joined the price
increase parade. The company.
largest producer of oil field ma
rhinery and equipment. increased
prices of its pipe products IS to
b8 a ton.
Philip Murray, president of the
CIO-United Steelworkers. has re-
manned silent on Big Steel's action.
But he's expected to ask for a
wage increase. When the 42-day
strike of the steelworkers ended
last November II. MI. Murray
said the new contract which
granted pensions and insurance
justified no steel price increase.
Under that contract Mr.. Muir
ray may not ask for negotiations
on wage adjustments until No.
vember /, 1850. Then, if no
agreement is reached. the union
may strike the first of the follow
ing year.
Says Profits Are Too Large.
Big Steel insists it must
have more money for its products
if it is to have a fair profit.
Senator O'Mahoney claims the
profits are too large already.
United States Steel's net income
for the first nine months of 1949,
during which new production
records were set, was 33.223,409,
compared with $88.042,150 in the
like period of 1948. Results for
the full year, which will reflect
losses from the recent strike. will
not be available until January.
The steelworkers, in their strike
ending contract, won 500 month
ly pensions. including social Sc
curity, and scent social welfare
plan financed jointly by employer
and eu1ploye.
Mr.. Fairless. in announcing the
price boost on steel products, de-
clared Big Steel had been sur
veying the situation for some time.
Welcomes Inquiry.
The revised price lists, he said,
mean an average 4 per. cent price
boost. Some prices Went up as
much as $29.50 a ton, others
dropped $3.50 a ton and some re-
manned unchanged.
Mr.. Fairless had this to say of
the proposed congressional in
quiry:
Reports from Washington in
dicate that representatives OF
United States Steel will be asked
by one or more congressional COM
mittees to appear in Washington
shortly to explain the small in
crease in its steel prices an
nounced today.
These price increases average
approximately per cent. United
States Steel will welcome such
an opportunity to appear and
present. the facts and figures
establishing that its increased
costs, including those to result
from it's new insurance and pen.
sion programs, give United States
Steel no alternative other than te
increase it's prices to this extent
in order to cover such higher costs
of operation"
Sioux CITY Explosion