Jessen's weekly., 1962-04-25
win battle.


 persuaded the steel executives to retreat on their price increase can now be told. The increase obvious ly had been planned for some time and it required the pressure of nub- lie opinion plus the most adroit backstage pressure ever mobilized by any President to reverse an in- dustry decision.
 Many other Presidents have tang led with the steel industry. begin- ming with Grover Cleveland. and including Wilson. Coolidge. Hoover, F. D. Roosevelt and Truman. None before has won clear-cut victory.
 To win his victory Kennedy be- gan immediately after Roger Plough, chairman of giant US. Steel, walked out of the White House on the late afternoon of Tues dav. April 10.
 On the advice of Secretary of la hor Arthur Goldberg he first called Edgar Kaiser. head of the Kaiser ! Steel operation at Fontana.. Calif. Goldberg, who had been with the President during most of the stormy session with Bloueh, had advised that Kaiser had bucked the big steel comoanies to help him, Gold berg. settle the 1859 strike.
 Kennedy reached Kaiser in Oak l land. Calf. He immediately prom ised he would not raise prices. Kali ser did not make a long-term com- mitment, but he did promise he would no nothing without further discussion with the administration
 Ace -In-HOle
 This promise was not publicized It was not even announced until af- ter Inland Steel's hold-down de- cision was announced. Kennedy kept 1 the Kaiser pledge as an ace-in-the- hole.
 Meanwhile, that same night, April 10, the President told his staff to start working on a tough. statement to be made at his press conference next day, and also conferred with his brother regarding immediate antitrust action.
 US. Steel made the mistake first of announcing the steel increase be- i fore informing the President; sec ond, of doing so one day before a presidential press conference. This gave the President time to make the following strategy: 1. To mobilize public opinion against US. Steel l through his press conference; 2. Make it clear that the Steel exec utives were in for real trouble by a grand jury investigations; 3. Wean some of the steel executives away from US. Steel.
 Looking over the list of steel ex- ecutives, Secretary Goldberg ad- vlsed the President that Inland Steel had also been recalcitrant dur ing the big strike in the Truman ad- ministration when the government took over the steel industry. But recently Joseph Block, h. i lands chairman, had served as a member of the Kennedy administra- tion's labor-management committee and publicly supported Secretary Goldbergs Chicago statement on noninflationary wage-price policy.
 Joe Block was in Japan, but Gold berg phoned Blocks brother, Leigh. while Under Secretary of Commerce Ed ,Gudeman phoned his cousin Phil. Gudeman and Phil Block had grown up together in Chicago.
 Call To US. SteePs Bankers
 Other cabinet members also got on the long distance phone. One of the most effective was Secretary of the Treasury Douglas Dillon, a Wall Street banker. who called Henry Alexander, head of J. P. Morgan. The Morgan company is the chief banker for U. $. Steel. Alexander is considered one of Wall Streets non- reactlonary bankers, one served with Kennedy's close friend Ken- neth Galbraith, now ambassador ;os India. on the strategic bombing sur x<~. l.