Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-10-23
Jurors Sworn
As Steel Price
Inquiry Begins

NEW YORK CAP)-A Fed
eral grand Jury made q formal
start today on its new study
Of steel industry pricing meth
DDS. but the scope Of the In
quiry remained unclear.
Federal Judge John p. K.
McGohey swore in the Is men
and seven women on the jury.
and told them to keep secret
all matters they discuss. And
that's what everybody. on all
sides, was already doing.
Silence continued to surround
the latest Government-re-
quested probe Of the way steel
prices are set.
Questioning Of prospective
jurors by John j. Galgay OF
the Justice Departments Anti
trust Division gave little clue
Of the specific inquiry the
Government wanted made. He
did ask If they or their rela-
tives had income or financial
interests in any steel company
or any financial institution
dealing with steel stocks.
Relations Strained
But. even with a minimum
OF fact available about the
grand jury investigation, II
was certain that the relations
between the Kennedy admin
iStration and the business
community were made sensitive
all over again, just as In 1852
when steel pricing was also
the cause.
The stock market reflected
this new strain when steel com.
company shares plunged yea.
terday, and then made only {
partial recovery as today'S trad.
ing progressed.
The records OF at least nine
steel producers have beer
subpoenaed.
/ Meanwhile. Youngstown Sheet
d. Tube Co. said 1t was boost.
ing prices So TO 50 a ton on Ger.
tain pipe products to match
competitor levels. This is moi
among the categories under.
stood to be involved in the
current action.
An industry source said the
Subpoenas called for presenta.
ton Of records relating to price
changes since 1856 on five
classes Of products, and infor.
nation on personnel in 4 posi-.
ton to decide on the adjust.
ments.
From this. it appeared that
the area under consideration
was far broader than boost.
this year. which raised overall,
steel prices more than 2 pei
cent and covered about three.
fourths Of mill tonnage.
COlluslon Study Seen
An industry source In tn,
midwest. not directly connected
with any steel firm, said: Pre-,
sumably the grand jury will b,
looking into the possibility o
any collision"
While the steel compa ME-
made 1t plain that they die
not welcome the inquiry, the
atmosphere was much les
charged than when Fedora
Jurors last surveyed broad In
dustry pricing practices.
That was In April. 1862. two
days after u. 8. Steel Corp
announced 4 36-a-ton, across
the-board boost. and all except
two other major producers
quickly posted identical mark.
ups.
At that time, President Ken
nedy anarily denounced steel
industry leaders. He said their
actions endangered administra-
ton anti-lnflation policies.
The frictionS subsidized grad
ually.
Last spring when domestic
Steelmakers raised prices on
sheets and strip, the White
House paid close attention but
made no hostile gestures. These
selected products accounted
for about one-third Of mill ton
mage.
Boosts on other items In
September and early October
brought a carefully worded ex-
preston Of concern" from the
President on October 8. There
was no indication that the
Government planned any move