Evening star., 1962-04-11

during which the Kennedy ad-
ministration prodded both the
union and the companies to
hold down increases that might
set off inflationary price rises.
Mr.. Hatcher said the meet
ing with the President last
night was requested by Mr..
Blough. Secretary of Labor
Goldberg was with Mr.. Ken
nedy during the meeting with
Mr.. Blough in the Presidents
office.
Afterward, Mr.. Hatcher said,
the President discussed the
matter with Walter Heller,
chairman of his Council of
Economic Advisers, and with
several cabinet members.
The Justice Department is
planning to investigate. So is
Senator Kefauver, Democrat
of Tennessee, chairman of the
Senate Antimonopoly Subcom-
mittee.
Senator Gore, Democrat of
Tennessee, described the action
as "a breach of faith with the
American people" and CON
trary to the national interest"
In a speech prepared for
delivery on the Senate floor,
Senator Gore said Congress
must consider the impact of
such price increases on the
Nation S economy.
I'VE must find some Way
short of rigid price and wage
controls to preserve and pro-
tect our free competitive enter
prise system" he added.
END Run" Charged
The Tennesseean said United
States Steels action put "a
sorry end" to the efforts of the
President and others to promote
the national interest. He
charged United States Steel
with pulling IAN end run"
before the ink was dry on it's
new and non-inflationary wage
contract with the steelworkers.
This action is in sharp con-
trast to what the American
people have reason to expect
from responsible leaders of
American industry" Senator
Gore said. II do rot charge
breach of contract, but I charge
breach of faith with the Ameri-
can people and action contrary
to the national interest"
Senator Church, Democrat of
Idaho, said what several others
did:
First. I heard it would be
an increase Of $1.50 a ton, then
IS, then Sc. If this is any in
dication. it's runaway initiation.
II think this is the most re-
grettable development for the
country and a betrayal of the
agreement that was reached
which anticipated holding the
line"
Senator MCGEE, Democrat of
Wyoming. called the price boost
regrettable. and Senator Ed
ward v. Long. Democrat of
Missouri. said U. S. Steel "vio-
lated faith with the admins
tration and the American peo-
ple."
On the Republican side. Sen
ate Minority Leader Dirksen |
Of Illinois showed a measure Of |
concern mingled with caution
and said he would make a
statement later today.
Immediate reaction was that
the steelworkers will have
plenty to say about it in the
next round Of bargaining.
Justice Hints Action
Both Senator Kefauver and
the Justice Department hinted
at possible antitrust action if
other steel companies follow
U. S. Steel's lead and raise
prices.
Whether other steel COM
panieS SlaviShly follow U. S.
Steel'S proposal will determine
whether there is any real COM
petition in the steel industry"
said Senator Kefauver.
He said he would follow the
situation closely and added, Il
have ordered the staff of the
subcommittee to begin an i'm
mediate inquiry into the mat
ter He called the increase
shocking and irresponsible"
A spokesman for Attorney
General Robert F. Kennedy
said because Of past price be-
havior in the steel industry,
the Department of Justice will
take an immediate and close
look at the current situation
and any future developments"
He noted that in the past
when one firm raised prices the
others followed suit.