The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1950-02-09
BY NATHAN ROBERTSON
For Labor Press Association

top men and It's most expensive
statistical equipment, marched ontC
the field before the Joint Congress.
ional Economic Committees in
quiry into the recent steel prices
confident Of victory, but skunk of
the field a few hours later whipped
according to some score keepers
by about 100 to 0.
Steel's touchdown play was &
flat statement by Benjamin Fair.
less, president, that it has mot q
fair return on its sales or invest.
ment at any time during the past
twenty years" But the opposition
composed Of some Of the best minds
in Congress, smeared that play and
every other attempt Of the stee
team to steal score. Here is the
way the game went:
Chairman O'Mahoney Cd, Wyo.)
kicked off with a prepared state
ment asserting the public's inter
est in steel prices, which go upward
but rarely downward at the dictate
Of U. S. Steel. He said we are liv-
ing in "an era Of private industrial
collectivism" but have not yet laid
down the rules for that kind of a
society so that both economic and
political freedom can be maintain
ed. OMahoney warned that if free
enterprise is to survive we must
maintain competition. If we want
competition we must recognize the
nature of modern gigantic business.
He scored with warning that cap
italism must be responsive to the
people, and should be prepared to
accept economic democracy.
Senator Flanders Or, VT scor-
ed again for the Congressional
team with a declaration that it
would be "nice if private business
could continue to be private busi-
ness" but it can't.
Rep. Buchanan Cd, Pa.) scored
for the House contingent by pick
ing up Fairless' statement about
not making fair profit for 20
years and asking what was fair
profit. Fairless tried to dodge, but
was cornered. O'Mahoney cited of
ficial statistics showing Steeps
profit before taxes in 1948 was
1873 per cent on its investments
compared with an average of 1922
over the past thirty years. Profits
after taxes were 1912 as compared
with 30-year average of 5.76.
Fairless challenged the figures,
but did not present any others. The
Congressional team scored again
when Fairless refused to name a
fair profit figure, despite his pos
tive assertion that steel had not
made enough.
Rep. Patman Cd, Tex.) scored
again for the Congressional team
when he asked whether the mon
opolistic basing point pricing sys-
tenn would help centralize or de-
centralize the steel industry. Fair
less fumbled, replying: 81 don't
know that Pm in favor of decen-
tralization of industry" clearly in
his willingness to accept
monopoly. He fumbled again when
he said US. Steel could protect it
self whether there was a basing
point system or not, but some of
the small companies couldn't.
O'Mahoney picked up the ball,
pointing out that this statement
indicated US. Steel's profits and
position in the industry were suf-
ficient to carry it through any
crisis while those of little compan-
les were not. Recalling Ebert |
Gary's famous statement that U. S.
Steel should not expand beyond 35 |
per cent of the steel industry, |
O'Mahoney got Fairless to admit |
that he was following that policy.
quickly, O'Mahoney then
scored with this statement: "Then,
Is matter of policy you are not
putting out Of business as many !
small companies as you would if
you wanted to expand beyond 35
Der cent"
Fairless tried to stop O'Mahoney
With a challenge of his figures that
US. Steel now has 35 per cent of
he steel business, contending the
figure was 32.4 per cent. But he re-
used to name a figure above which
Steel would not go on taking over
he steel industry, and tried to
iisclaim Gary's rule, but O'Ma-
loney pointed out he had accepted
t.
O'Mahoney said the implication
# the Gary statement, which Fair
ess had endorsed was that "com-
petition exists by sufferance of
j. S. Steel" Fairless tried to deny
t. Another score for the Congress
onal team. O'Mahoney accused
Fairless of fencing" with him.
again, O'Mahoney tried to get the
teel company head to name fair
'rofit figure, but Fairless contin-
ed to duck. Again O'Mahoney ac- {
used him of fencing. y
profits aren't something you s
an push a button and say that's t
t." Fairless said, in his fancy open
iald r1lnninn exhibition "That'S !