Evening star., 1962-08-31
STEEL
Continued From Page AL

The four companies, unlike
eight other major steel pro-
ducers, have declined so far 70
submit detailed unit cost fig
ures in response to subpoenas
issued by the subcommittee.
Senator Kefauver previously
said he would seek to have
them cited for contempt of
Congress if they persisted in
their refusal.
SubpoenaS first were issued
last April after major steel pro-
ducers announced a short
lived $6-a-ton price increase
that was rescinded after Presi-
dent Kennedy threw the full
weight of the Government
against it.
Senator Kefauver said at the
time that production cost fig
ures were essential TO an in
telligent evaluation of the need
for price increases.
Second Chance"
! Ten days ago the Subcom-
mittee voted, S to 8, with the
Democratic majority overriding
the Republican members. 10
serve second chance" sub
poenas on the four companies
refusing to comply with the
original demand for unit cost
data.
The new Subpoenas named
the principal executive Officers
of the companies as well as the
companies, and directed them
to appear personally.
| The steel executives who were
subpoenaed but failed to appear
are:
Bethlehem: A. B. Homer,
chairman and chief executive
officer: Edmund Martin. presi-
dent and Frank r. Brugler,
controller.
Republic: Thomas F. Patton,
president, and George M. Feiel,
vice president and controller.
National: Thomas E. Millsop,
chairman of the board, and
George Stinson, secretary.
Armco: Logan T. Johnston,
president, and D. z. Reichelder-
fer, vice president, finance.
Called COntumaciOus
Senator Kefauver, referrini
to what he called the "con
tumacious conduct" of these Of
ficials and their companies, salt
, he found it all the more amaz
, ing because the eight othe
major steel producers hat
: agreed to supply the subcom
mittee with the requested
| figures.
; He said United States Steel
the industry's largest, hat
: worked long and diligently will
: the subcommittee's staff to de
: wise procedure for FURNISHING
: the data.
Under the arrangement
, agreed on, he said, sohrter an
simpler missionaries had beel
!. prepared and the data was t
be compiled by the General Ac
D counting Office in a way de
. signed to prevent disclosure Q
!. production costs of the indi
! vidual companies.
r The steel companies conten
disclosure of their unit cost
: would damage them competi
S lively, both at home an
= abroad. They also have chal
lenged the subcommittee
: jurisdiction, arguing in effec
that the information is non
o of it's business and would serv
n no legislative purpose.
i Precautions Taken
Senator Kefauver has sal
n that, to prevent disclosure 9
+ the costs of any individus
f company, the data will be sub
mitted directly to the GAO
G be compiled as averages
4 groups of at least three com
n panies.
e Under this procedure, Senate
= Kefauver said, eight steel com
d panies have informed the sub
= committee that they will com
= ply with the subpoenas despit
the strong objections they hav
It expressed.
e In addition to U. s. Stee
S he listed these companies g
g Jones & Laughlin, Youngstow
y Sheet & Tube, Inland, Kaise
d Colorado Fuel & Iron, WheeI
: ing and McLouth.
However, Senator Kefauve
said they have been excuse
from submitting their cost fig
y ures until the question of com
T. pliance by the four other ste,
e producers is determined.
= In Pittsburgh Mr.. Millso
= issued this statement:
n Our action in refusing
II comply with the subpoer
% issued by Senator Kefauver
: subcommittee was in no sem
an expression of disrespect fl
st the United States Senate. "
le are simply endeavoring by tt
al only means available to us
n. protect the interests of M
II tional Steel Corp. :.
ID
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