Evening star., 1962-04-14
All 8 Firms
Rescind
Price Rise
BY LEE NJ. COHN
Crar Z-..f XTYr3+ar

today with antitrust inveStiga-
tions and other actions to hold
prices steady throughout the
economy, after crushing the
steel industry's attempt to raise
prices Sc a ton.
All eight of the steel COM
panies that had increased prices
under extreme po-
litical and economic pressure,
canceling the boosts. Seven OF
them capitulated yesterday and
Wheeling Steel Corp. fell into
line today.
Although President Kennedy's
72-hour blitZ had forced the
steel industry to roll prices back
to $3.50 a ton, the administra-
ton was watching for more
subtle price increases later in
steel and other industries.
The steel price structure is
a complex one, with the $3.50
-a-ton figure only a rough
average. 1t is possible to raise
prices selectively, to withdraw
discounts from list prices and
to impose special finishing
C charges without boosting
basic" prices.
Only experts can detect the
upward drift when prices are
raised in this manner.
Economic Plan Saved
But for the moment, at least.
the President has saved his
plans from the threat
of a price-wage spiral. Major
industries will hesitate to raise
prices sharply. and labor unions
will be under continuing pres
sure to keep wage demands
moderate.
Mr.. Kennedy's victory, how
ever, probably will set back his
campaign to soften the busi-
ness worlds hostility to many
Of his New Frontier programs.
United States Steel Corp.
Cancelled its price increase at
5:25 pm. yesterday in New
York. 72 hours after it started
the price-raising parade by an
a boost of Sc a ton.
or about 3.5 per cent.
The industry's collapse be-
fore the administrators on
Slaught started at 11:15 am.
yesterday, when Inland Steel
Co. announced in Chicago that
it would not raise prices lat
this time"
Inland, the industry's eighth
biggest producer, had not
Joined in the initial round of
price boosts started Tuesday
BY United States Steel, the in
dustrys top company.
Move Guaranteed
After the first shock of the
price increases, the adminisra-
,lon decided to try to quaran-
line the movement. If a couple
of substantial companies could
De induced to hold the price
inc. strategistS calculated. their
leverage might ul-
force cancellation of
The price increases.
United States Steels board
chairman, Roger NJ. Blough.
acknowledged the merits of
his strategy at a news confer
ance Thursday. Asked how long
le could make his price in
crease stick" if several other
companies held the line, he re-
1lied:
1T would definitely affect
Is, and I don't know how long
We could maintain our position.
. 1t would make it very diff
icult for U.S."
Inland was the main target
If the administrators persua-
'ion effort. Its board chair
nan is Joseph L. Block, who
S on good terms with the ad-
niniStration and is a member
# the Presidents Advisory
Committee on Labor Manage
nent Policy.
Good Profit Record
Furthermore, Inland has
more modern equipment than
most steel companies and
ately has enjoyed a better
han-average profit record. In
and'S economic strength pre-
put it in a position to
orgo price increases.
Administration officials con-
acted executives. board mem
,erS and major stockholders
# companies that were hesi-
atlng about prices. Commerce
Jndersecretary Gudeman, who
;aS a Chicago business eXecu-
i've before joining the admin
stratlon. was a primary con-
See STEEL, Page A-3