davidaulloa/AmericanStories huggingface dataset:
Evening star., 1962-04-15
DepIoying Forces

When Mr.. Blough announced the
$6-a-ton rise in steel prices Tues
day evening Mr.. Kennedy, like a
five-star admiral before a decisive
engagement, gathered his chief
aides. drew up his plans and de-
ployed his forces.
He set out to arouse the public
against the steel titans who dared
act against his conception Of the
national welfare. He ordered the
Attorney General to investigate
possible antitrust action against
the firms who raised prices and
told the Defense Department and
other Federal agencies to study
their procurement policies to favor
steel firms which had not followed
U. S. Steel's lead. He conferred
with congressional leaders and an
nounced that committees in both
Houses would hold hearings on the
situation.
But the President did more than
threaten and haraSs. Key aides
such as Labor Secretary Goldberg,
Defense Secretary Mcnamara and
Edward Gudeman. Undersecretary
of Commerce. kept the long-dis-
tance telephone lines humming
with calls Of persuasion to officials
of steel companies like Inland and
Armco, eighth and sixth largest
producers. which had not Joined
the price-hike parade.
Evening star., 1962-04-15

with unreasonable contract bar
gaining positions in the near fu-
ture.
Many observers also saw the
President enhancing his personal
popularity and prestige with this
victory. But whether it will affect
significantly next November's con-
gressional and gubernatorial elec-
tions is something that no one can
say-and prove-at this point.
The events of last week left
several large questions unanswered
and raised new ones.
First, how is Americas steel
industry going to speed the mod
ernization of its plant and equip
ment-which is necessary if it is to
meet foreign competition and
thereby help melt the Nations
balance-of- payments deficit? A
tax-incentive bill now in Congress
would help some. but there is not
even assurance this aid is forth
coming.
How long can an industry con-
tinue to absorb cost increases
without an increase in prices?
Steel has been doing this for four
years. Possibly we will see "selec-
tive" price rises on steel products
before many months go by.
Evening star., 1962-04-15
Rights:
New Approach

A Senate subcommittee last
week opened hearings on an
ACKNOWLEDGEMENTS bill to
bar unfair" literacy tests for
voting in Federal elections. A
Southern filibuSter is seen in
the weeks ahead.
The Kennedy administrators
legislative demands in the civil
rights field are comparatively
modest this year.
In fact. the word was widely
passed out at first that no new
bills would be pushed by the White
House during the remainder OF the
87th session. Republican taunts
and Negro plants may have
changed things, because the ad-
ministration later promised to
fight for a measure which would
stipulate that anyone with sixth
grade education was to be con-
sidered literate for voting pur-
poses unless a State law eStab-
liShed other standards.
This bill would eliminate liter
acy tests in certain States which
give voting registrars wide diScre-
ton in determining a persons
eligibility to vote. The use of such
tests for discriminating against
WOuld-be negro voters in some
parts OF the South has been COM
mon,
Evening star., 1962-04-15
-AP Photo.

price increases on motor cars took
place. Similar pressure was put
on the steel industry not to
boost its prices when another
wage increase, provided for in the
current contract, which expires on
June 80, took place. The industry
obliged.
This year, the White House,
with Labor Secretary Goldberg
helping the President. got the
Steelworkers and their employers
to sit down at the bargaining
table in d-February-the earli-
est such talks in history.
Constant Government pressure
played role, one which, however.
probably has been overstated, in
producing what the President
called an essentially non-infla-
tionary agreement. The workers
got no direct wage increase, but
won fringe benefits worth at least
10 cents an hour. Industry was
mum on any price increase, but
the President was clearly convinced
that none was necessary or forth
coming. He congratulated both
parties on their restraint
Industry observers, pointing to
rising foreign competition and
domestic challenges from such
materials as aluminium and ce-
ment, predicted, generally, that
no acrosS-the- board steel price
hike was likely.
Evening star., 1962-04-15
Opposing Views

On the matter of the increase
itself, these we're the opposing
administration and industry
views:
The Government contended
that the recently signed contract
providing fringe benefits to the
workers will raise labor costs 2.5
per cent, an amount which will
be more than offset by a higher
production rate per man-hour
This means that the labor cost
for a ton of steel will actually
decline and no price increase is,
therefore. necessary.
Industry contended it is forced
to raise prices to catch up with
labor and other cost increases alb
sorbed since the last price in
crease in 1858 in order to obtain
funds for investment in modern
plant and equipment-a necessity
if it is to meet both the foreign
and domestic competition men
toned above
This argument was first put in
the United States Steel announce
ment of Tuesday. 1t was elabo-
rated upon by Mr.. Blough at a
special news conference in New
York on Thursday, at which time
he defended his company's deci-
sion as one it alone had the right
to make.
Evening star., 1962-04-15
A Third Force

The Kennedy administration
since then has taken a number of
steps to meet problems on all
these fronts.
In the pursuit of price stability,
it devised a new role for Gov
ernment-that of third force"
purportedly representing the pub
lie interest, in industrial contract
negotiations.
Last year, for example, Fed
eral Government pressure was ex-
erted heavily to bring about a
moderate new contract between
the United Auto Workers union
and manufacturers and no new
Evening star., 1962-04-15
Presidents Role

Finally, perhaps of the highest
Importance in the long run, what
is the proper role for the Pres
ident to play in the matter of
prices and wages? Last week, with
legal and extra-legal pressure and
means, Mr.. Kennedy virtually set
the price Of steel. Can he or will
he do the same if labor union
strikes for unreasonable" pay in
creaSeS?
The battle is over but actions
have been set in motion which
could produce only a sullen peace.
Thus, the grand jury investigat-
ing possible antitrust and monopoly
violations on the part of the steel
industry is going forward, accord
ing to Attorney General Kennedy.
And congressional leaders an
nounced that the rollback of prices
will not alter their determination
to press plans for House and
Senate inquiries.
The President and the country
Evening star., 1962-04-15
Increase Obtained

AS to the need for the S6-a-ton
or 3.5 per cent price rise, Mr..
Blough said the net cost for pro-
ducing steel had risen by 6 per
cent since 1858, without taking
into account the newly contracted
rise of 2.5 per cent.
when costs keep moving up
ward, and prices remain Substan-
TALLY unchanged for four years,
the need for some improvement
in the cost-price relationship
should be apparent" he asserted.
Some newspapers editorially
questioned the Presidents right
to intervene so directly in a mat
ter of what prices a company
should charge for its product. al
though virtually all Of them re-
garded the steel increase as un-
fortunate.
Editorial support for the Presi-
dent, however, was high. The
White House announced that the
kilograms it received on the mat
ter backed Mr.. Kennedy ga to l.
Big Steel clearly did not have
substantial public support for its
action. Nor did leaders Of the
Republican Party, which counts
many friends among big buSi-
ness, rally to United States Steels
side. Taking on the Federal Gov
ernment was a lonely affair.
This was the situation when, at
11:15 am. on Friday, Inland Steel,
one of the induStry's best money
makers in 1861, made its crucial
announcement. Kaiser Steel fol-
lowed at 2:O5 pm. and at 1920
pm. the dam broke with Beth
lehem's rollback. U. S. Steel pro-
vided the anticlimaX at $40 pm.
Evening star., 1962-04-15
THE FOREIGN SCENE
An Orderly UPheovoI
Is De GouIIe's Aim

In the wake of last Sundays
overwhelming vote in France
supporting the Algerian cease
fire, Michel Debre resigned as
premier yesterday. This will
pave the way for a fresh govern
ment to undertake the goals set
by President de GauIle.
Charles de Gaulle's France does
not exist merely as one nation
among others. To him, history
has destined France for a gram
deur beyond the reach of other
nations.
THE emotional side of me tends
to imagine France" he once
wrote, like the princess in the
fairy stories or the Madonna in
the frescoeS, dedicated to an ex-
allied and exceptional destiny"
And in this mystical world,
Charles de Gaulle has found a
place for himself. If France is a
princess" he is her Prince
Charming, if France is the Ma
donna, he is her Raphael.
France" he has said, cannot
be France without greatness"
If this myStique has alienated
Mr.. de Gaulle from democratic
minded men; if it has myStified
even his warmest supporters, it
has supplied him with a creative
drive denied to others.
Evening star., 1962-04-15
His Achievement

The Algerian cease-fire, signed
at Evian-leS-BainS on March IS,
was an achievement probably no
other French leader could have
accomplished without provoking
insurrection throughout France.
Last Sunday, the French people
were asked to vote on the cease
fire, stating whether they sup
ported the pact.
Mr.. de Gaulle made it clear that
a large "yes" vote would be con-
sidered mandate by the people
to use his authoritarian rule not
only to complete the freeing of
Algeria but to begin work on i'm
portant domestic problems that
had been held up by the war.
The vote posed a real problem
to Frenchmen. Very few were
against the ease-fire, but many
are against Mr.. de Gaulle's one
man concept of government. New
ertheleSs, when the votes were
counted, he received 90.70 per cent
of all votes cast.
Evening star., 1962-04-15
JOHN F. KENNEDY

statement read to his ne1US
conference, April II, 1862
The simultaneous and iden-
tical actions of United States
Steel and other leading steel
corporations increasing steel
prices by some Sc a ton con-
Stitute a wholly unjuStifiable
and irresponsible defiance Of
the public interest
e. the American people
will find it hard, as 1 Go, to ac-
cept a situation in which a tiny
handful of steel executives
whose pursuit of private power
and profit exceeds their sense
of public responsibility, can
show such utter contempt for
the interest of 1876 million
Americans
Sometime ago l asked each
American to consider what he
would do for his country, and
I asked the steel companies. In
the last "a hours we had their
answer"
Evening star., 1962-04-15
Frances Honor

This drive, in the name of La
France" led him as an unknown
officer to rescue Frances honor
during World War II. He defied
President Roosevelt and Prime
Minister Churchill ll-even threat
ening an open split and insisted
on his Free French Forces being
treated as equals.
always, even when he was be-
having worst, he seemed to express
the personality of France" Mr..
Churchill wrote later, "the great
nation with all its pride, author
ity and ambition"
1t was this drive which led Mr..
de Gaulle to answer the cali in
May, 1858, when the French ma
ton was on the verge of civil war
over Algeria. To save France, he
said the Fourth Republic must
fall-together with most of its
democratic institutions.
Then, as a virtual dictator, he
accomplished what democracy had
failed to do in postwar France. He
stabilized Frances economy; he
liquidated Frances rebelliouS
overseas empire; and last month,
he ended the Seven-year- -old AL
gerian war.
Evening star., 1962-04-15
THEODORE ROOSEVELT

I'm his Seuenth annual mes
sage to Congress, December 3,
1907
The course of the Depart
ment of Justice during the last
few years has been such as to
make it evident that no man
stands above the law, that no
corporation is so wealthy that it
cannot be held to account. 1t
has been prompt to proceed
against the wealthieSt malefac-
tor whose crime was one of
greed and cunning.
while the average juryman
undoubtedly wishes to see trusts
broken up, and is quite ready to
fine the corporation itself, he is
very reluctant to find the facts
proven beyond a reasonable
doubt when it comes to sending
to Jail a member of the business
community for indulging in
practices which are profoundly
unhealthy. but which, unfortu-
nately, the business community
has grown to recognize as we'll
nigh normal"
Evening star., 1962-04-15
The Shocker

Then came the Shocker from
United States Steel.
Mr.. Blough's procedure Qater
so widely attacked was to call
at the White House to tell Mr..
Kennedy that his firm had ordered
a S6-a-ton price hike. To say that
the President was rocked back in
his well-publicized rocker would
be putting it mildly. Repeatedly,
he felt Inundated and double
crossed.
(He later conceded that the steel
companies had made no literal
promise not to raise their priceSD
But he was not too angry to
take quick counteraction. He
summoned cabinet officers and
high officials and mapped plans
to mount the whole power and
Evening star., 1962-04-15
Military Plans

In the military sphere, Mr.. de
Gaulle will carry out a program
of undermining French army
forces-meaning creating Frances
own nuclear striking force. Since
France is well-behind the United
States, and Britain in this field,
he has been urged in the past by
Washington to forgo building up
his own nuclear forces.
Mr.. de Gaulle's answer is simply
this:
France will give up it's nuclear
arms when every other power does.
Until that time, France as a great
country, should be armed as a
great country. He has offered to
forego nuclear tests if the United
States would turn over its secrets
to him. Washington has refused.
A nuclear France possibly would
strain Mr.. de Gaulle's relations
with the United States and Britain
even more. 1t is well-known that
France has taken a much harder
position regarding such issues as
Berlin and disarmament than the
other NATO countries; indeed,
France is boycotting the Geneva
talks calling it a waste of time.
Evening star., 1962-04-15
To Keep Allies

Yet, Frances independent views
do not mean that France wants
to foresake its European allies.
It means that France-under Mr..
de Gaulle-doeS not want to be
considered second to any nation
even the United States-in
policy matters.
France has been a vital mem
ber of the Common Market, and
indeed, France pioneered in the
idea of a United States of Europe
which gradually is becoming
reality.
The Market, however, is not only
an economic alliance. 1t is meant
to be a political one, too. The
men who had the European
idea" such as Jean Monnet, Wis
ualiZed the customs union becom-
ing, in turn, a federation or con-
federation of states.
France believes that politically
the Market should be group of
equal sovereign states, with no
Continued on Page B-2
Evening star., 1962-04-15
THE WEEK IN PERSPECTIVE
Steel: The Larger Question

force of the Federal Government
against the steel industry.
The next day, the President
revealed the full extent of his
wrath to tens of millions of
Americans. Striding grimly into
the auditorium of the new State
Department Building to meet the
press. he delivered his bitter at
tack on United States Steel.
Speaking with the emotion of
a deeply wounded man, Mr.. Ken
nedy termed the price increase
wholly unjustifiable" and casti-
gated what he called "a tiny
handful of steel executives whose
pursuit Of private power and
profit exceeds their sense Of pub
lie responsibility" He said that
they showed their utter con-
tempt for the interest of 1875 mil
lion Americans"
Evening star., 1962-04-15

u. S. Steel and seven other
companies Cancelled price rises
of S6-a-tOn late last week after
a three-day all-Out war by
President Kennedy and admin
istratiOn aides.
For 72 hours last week the
American people were witnesses
to an economic-political drama
such as has not held the national
stage since the early days of the
New Deal.
The leading, but by no means
the only, actors in the uneven
struggle, which pitted Big Steel
against Big Government, were:
. John F. Kennedy, A, the Pres
ident of the United States, born
with the proverbial silver spoon,
the son of one of the richest men
in the country.
o Roger M. Blough, SO, Chairman
of the Board of U. S. Steel, one Of
seven children of a Pennsylvania
truck farmer, who in Horatio
Alger tradition began work as
boy to pay for his education and
wound up as head Of the Nations
third largest corporation.
In the New Deal days, before the
Federal Government reached its
present size and power. the out
come of a real battle between a
giant industry and the White
House may have been unpredict-
able. Certainly, in the days Of
trust-busting Theodore Roosevelt,
before World War I, the winner
would not be certain.
This is not the case in 1862 and
President Kennedy proved it con-
clusively between 5:45 pm. Tues
day and $50 pm. Friday.
Evening star., 1962-04-15
Hearings Open

Last week. the Senate Subcom-
mittee on Constitutional Rights,
headed by Senator Erwin of North
Carolina, opened hearings on the
new bill. Attorney General Ken
nedy. the first administration wit
ness. promptly asserted that hun
dredS Of thousands" Of Negroes,
including some college professors,
cannot vote because of "diScrimi-
nation" on the part of registrars.
Senator Erwin. a highly regarded
Continued on Page b.
Evening star., 1962-04-15

in referendum on Algeria'S fu-
ture. The vote, expected by July,
without question will set Algeria
free, and will retain Algeria's close
ties with France.
A French high commissioner al
ready has been appointed, and a
provisional council named. These
are steps leading to the ref
erendum. The European Secret
Army Organization (OAS), vio-
lently against Algeria'S inde-
pendence, continued its terror last
week, but observers noted that its
support among the European
population was beginning to wane.
With all France in favor of
Algeria's freedom, and the moral
force of the world behind self
determination, the OAS finds it
self in a corner. 1t can kill and
destroy, but such nihilism can
only burn itself up in time.
Evening star., 1962-04-15
The Strategy

The strategy was divide and
conquer" If these and smaller
firms, which together account for
Is per cent Of the national steel
production, could be persuaded to
hold the line, U. S. Steel and
others might be forced to rescind
their price increases-which sent
steel to an average Of $156 a ton.
That is apparently what hap
pened.
Joseph Block, Inland's chairman
and a member Of the Presidents
Labor Management Advisory
Committee, is close to the admin
istration. Travelling in Japan. he
told reporter he didn't think it
would be in the national interest
at this time to raise prices. Back
home, an hour later, Inland an
nounced its decision: 1t would hold
the line. White House hopes
scared. When Kaiser Steel fol-
lowed Inland's lead victory was in
sight.
The collapse Of the steel giants
followed swiftly. Bethlehem, No. 2,
announced it would rescind its
price rise for competitive reasons.
ct had seen earlier the Pentagon
award a contract for 1000 tons
of special steel to the Lukens
Corp, which had held the price
line).
The Surrender
U. S. Steel's next move, unlike
its first, was highly predictable.
It surrendered-almost exactly
three days after it touched off the
battle. It, too, cited the need to
meet competition. But it gave an
addition one in this brief an
nouncement:
1.-The price decision was made
in the light Of competitive devel-
opmentS today, and all other cur
rent circumstances, including the
removal of a serious obstacle to
proper relations between Govern
ment and business"
Mr.. Blough had indicated at his
news conference the day before
that U. S. Steel might have to take
the action. Asked what would hap
pen if other companies did not
raise prices, he replied:
1T would definitely affect us
and I don't know how much
longer we could maintain our
position"
Having climbed on the tiger and
ended up inside, Mr.. Blough may
Just have been hoping privately
for such an "out."
Mr.. Kennedy, who was with the
United States Atlantic Fleet off
Norfolk, Va, on a visit Friday, re-
sponded to the news with the
rather restrained observation that
the American people were most
gratified".
The President doubtless was
personally highly pleased. His
campaign for wage stability, in the
eyes of most observers, had been
advanced, the feeling being that
few large industries or labor un-
ions will risk presidential anger
Evening star., 1962-04-15
Debre to Quit

Premier Michel Debre, head of
Mr.. de Gaulle'S Algeria cabinet,
resigned as expected yesterday.
thus clearing the way for new
cabinet and a new domestic pro-
gram-called in France, national
renovation.
What will this entail?
Mr. de Gaulle has said that he
wants to embark on ambitious
social. economic, and adminlstra-
tive reforms. The program would
probably call for removing the
wage freeze in government and
government-run jobs, and for
more extensive social security
type payments.
The French economy has been
booming in recent years, mainly
through conservative fiscal policies
that encouraged industrial expan-
sion, and kept the balance of
payments in the black. The new
renovation" will probably move
more to the left-and alter the
economy to adjust the burdens
more equitably on the population.
Evening star., 1962-04-15
Referendum Set

It was widely assumed that a
large number of abstentions could
be taken as a symbol of dis
satisfaction with Mr.. de Gaulle.
Observers estimated that 35 per
cent would be considered large"
abstention. In the end, only 24.3
per cent abstained, thus boosting
Mr.. de Gaulle's prestige even
more.
By the terms of the cease-fire,
the Algerian people-about nine
million Moslems and one million
Europeans-will be asked to vote
Evening star., 1962-09-07
STEEL

Continued From Page Al
quest, and are not being sub
poenaed, Senator Kefauver
told reporters.
The committee action was by
voice vote, but Senator Ke-
fauver said he voted against the
move because he felt they al
ready had a chance to appear
and didn't avail themselves OF
it."
Senator Kefauver said the
steel companies - Bethlehem
Republic, National and Armcc
had written to Senator East.
land, Democrat Of Mississippi
chairman of the full commit
tee, asking to be heard.
Practices Called Confidential
The cost data first was sub
poenaed last April after an.
nouncement of a $6-a-ton stee
price increase, subsequently re.
scinded under pressure from
President Kennedy.
Senator Kefauver contend!
the information is essential Il
evaluate steel pricing practices
but the four companies hav,
taken the position that thl
information is highly confiden'
tial and disclosure would dam,
age the companies competi
lively.
In refusing to respond to tn,
subcommittee's subpoenas, til,
four steel companies chal
lenged the groups jurisdiction
and the validity of its sub
| poenas.
Evening star., 1962-09-07

to appear at the opening Of the
General Assembly September
18, but he apparently left oper
the possibility Of a later ap-
pearance.
The cordial treatment Mr.
Khrushchev has Just accorded
touring Interior Secretary UdalI
at the Black Sea resort Of Soch.
could be another straw in the
same wind. officials here said
1t is significant that Mr.
Khrushchev received Mr.. Udall
so soon after the U-2 incident
became known, American spe-
cialists believe. The alleged
overnight occurred August 80
and the Soviet protest was pub
lished three days ago.
Mr.. Udall requested an op-
portunity to see Mr.. Khru-
shchev before August 80, but
did not receive his favorable
answer until after then.