U.S. Steel's Blough Answers Criticism
NEW YORK — (UFI) — Board Chairman Roger M. Blough of U.S. Steel answered his critics from President Kennedy to the man in the street by calling the announced increase in steel prices "almost negligible."
THE STATEMENT did little to stem the tide of criticism flowing from the White House, although some government economists said privately the price rise would not hurt business expansion.
Blough read a 1,500-word statement at a jammed news conference yesterday and declared the $6 per ton hike in steel prices would ultimately benefit the nation.
There were these immediate reactions to Blough's statement:
- In Washington, U.S. Atty. Gen Robert F. Kennedy ordered a Grand Jury investigation in New York of whether the price increase involved criminal violations of antitrust laws.
- Secretary of Commerce Orville Hodges held a news conference of his own in Manhattan and said the men responsible for the price increase "said in effect that United States Steel comes first, the United States of America second."
- Prices on the New York stock exchange plunged to a new low for 1962 with steel issues leading the decline. U.S. Steel fell 11 s.
BLOUGH, 58, closely guarded by city detectives and other security guards, opened the nationally televised news conference with an obvious reference to Kennedy, who has called the price increase "wholly unjustified and irresponsible."
"We do not question the sincerity of anyone who disagrees with the action we have taken," he said. "Neither do we believe that anyone can properly assume that we are less deeply concerned with the welfare, the strength and the vitality of this nation than are those who have criticized our actions."
BLOUGH SAID the "almost negligible" price rise was necessary to modernize steel plants. He said this would create more jobs, taxes and make the United States stronger in worldwide economic competition.
Blough said U.S. Steel had never given the administration a pledge not to raise prices. "No assurances were asked and none were given regarding price action as far as I am concerned or any other individual connected with our corporation," he said.
Blough, who earns about $300,000 a year as U.S. Steel board chairman, said that steel costs since 1958 "have gone up far more than the announced increase of yesterday."
Local Pageant Has Ten KU Finalists
Ten KU women were among the 12 finalists chosen in the preliminary Miss Lawrence Pageant last night.
The KU finalists include Joannie Burger, Prairie Village freshman; Mary Lynn Cooper, Prairie Village sophomore; Sherril Murrow, Topeka sophomore; June Owens, Alta-mont junior; Nancy Elaine Rusk, Lawrence sophomore.
Diana Sparks, Lawrence sophomore; Judy Stafer, Shawnee Mission sophomore; Mary Tramposh, Lenexa freshman; Susan Olsen, Topeka junior; and Sunday Searles, Leavenworth freshman.
Other finalists include Jacque Brahler and Mimi Frink, both of Lawrence.
The Miss Lawrence finals will be at 8 p.m. Friday in the Lawrence High School auditorium. The contestants will present a short talent act and model a long evening gown and a one-piece bathing suit.
The winner of the contest will receive a $100 scholarship and the two runners-up will receive $50 scholarships from the Pepsi-Cola Co.
Miss Lawrence will compete in the 1963 Miss Kansas Pageant preliminary contest of the Miss America Pageant.
HODGES, FORMER North Carolina governor, met with newsmen about 30 minutes after Blough made his defense.
Tickets to the Miss Lawrence Pageant are on sale in the Kansas Union. Tickets will also be on sale at the dorms and organized houses April 16-18.
He said that "any firm or industry is free to set prices as it sees fit." But he added that "it is free to make mistakes and I believe the steel industry's mistake is a tragic one.
"Its action is a disservice to the country and to the business community as a whole."
"AS A FORMER businessman," he declared, "I am confident that the business community as a whole is disturbed by this development."
Hodges admitted that while steel prices have not risen in four years labor cost per ton of steel did not increase "essentially" during the same period.
Blough brought laughter when he answered a reporter that there was no political motivation he knew of in the price rise.
"That is a field that I know nothing about as I think you gentlemen can see," he remarked.
Hodges said he did "not enjoy criticizing a major American industry." But he declared the government has "a clear responsibility to speak out when private actions are taken which may well jeopardize the continuation of a healthy free enterprise system."
Blough's announced price increase to $176 a ton came just five days after the industry signed a contract with the steelworkers union praised by Kennedy as noninflationary. Blough has headed U.S. Steel for seven years.
Page 9
International Students: Students wishing to apply for the 1962 Summer Cross-Campaign, a program of Springs, Colorado, on June 9-16 should see the office of the Dean of Students for application forms. This terminal program is at no cost to the student providing he or she will receive funding.
Applications for interviews for "People
Tell" may be obtained in the P-t-P Office.
113 Kansas Union until 5 p.m., Friday.
Interviews will be this Sunday,
April.
Official Bulletin
teacher interviews:
April 13  Jim Barcelow, Public Schools
Angeles, Calif.
Teacher Interviews;
April 16 — Walter Dingus, Dist. Supt.
Unif. Sch. Dist. San Marino, Calif.
nif. Sch. Dist., San Marino, ca.
715-462-3900, 800-345-2900,
Fridgedge Hotel, All Jewish students are invited. Those planning to attend please
include:
home, VI 3-0626. Dinner will be $1.25.
TODAY
Hiliel Services: 7:30 p.m., Jewish Community Center, 917 Highland Dr.
International Club: 7:30 p.m. Big 8
International Club: 10:30 a.m. Zafrulla Khan, Pakistan delegate to U.N., will speak, followed by party games from many lands, dancing, and refresh-
Baptist Student Union: 7:30 p.m., 1228
Oread. Dr. Robert Craft, Leawood Baptist Church, Kansas City, Kansas, "The Priesthood of the Believer."
inter-Varsity Christian Fellowship
7.5 hours, Cottonwood Room, Kansas Union
Lutheran Services: 8:30 & 11 a.m. Immanuel Lutheran Church, 17th & Vermont, 5 p.m., Wednesday, Danforth Chanel.
SUNDAY
Catholic Mass: 9 & 11 a.m. Fraser Hall (Newman Club).
University Daily Kansan
a.m. Danforth Chapel.
"Inside-People Forum": 2 p.m., Kansas
State University.
Annual International Dinner: 6:30 p.m.
Kansas Union. Featured dishes for this affair, sponsored by the KU International Club, will be: saurabruttin, dolma, emparmanda, polen kottbullar, & karjaria, polen kottbullar. This service is provided by, members of the Club.
John Ryland, Caldwell senior, was one student who said he was not notified of the procedure for having his picture taken.
KUOK: 3—News & Weather; 3:05
WKUOK: 4—News & Weather;
Concert: 6—News & Weather; 6:15
Horizons; 8—Hagen's Hothouse; 10—News
Portals of Praver & Sign Off
"I CALLED ESTES STUDIO a couple of days ago and I was told that it was too late to have my picture taken," he said. "I was never notified of the deadline."
Episcopal Holy Communion & Lunch:
12 pcn, Cantorbury, House.
MONDAY
Episcopal Evening Prayer: 9:30 p.m.
Danforth Chapel.
Jayhawker Executives Say Seniors Knew About Pictures
Only about 800 out of the 1,700 seniors will have their pictures in the commencement issue of the Jayhawker. Several have protested that they were not notified about the picture-taking procedure.
Executives of the Jayhawkwer denied today that members of the senior class were not properly notified about when and where their senior portraits were to have been taken.
JANICE WISE, Kansas City, Mo. junior and Jayhawker senior picture editor, said yesterday that she did three things about March 1 to notify the seniors.
"I called all the presidents of all organized houses and told them that they should remind seniors in their houses to have their pictures taken," she said. "I told the presidents that the seniors had to have their pictures taken by Estes Studio by March 24."
Miss Wise said that she also wrote letters to all organized houses and that she told the presidents of several professional and honorary organizations about the senior picture situation.
"I checked the issues from Dec. 18 until the present issue," he said. "I found no notice about senior pictures."
Ryland said that he checked back issues of the Daily Kansan for an announcement about the pictures.
(Editor's note: In the Jan. 8 and Jan. 11 issues of the Daily Kansan, there were two-column advertisements urging seniors to have their pictures taken as soon as possible at Estes Studio.)
Ryland said he felt the posted letters from Miss Wise were ineffective.
"OUR BULLETIN BOARD (Joseph R. Pearson Hall) is large and very cluttered," he said. "It's so bad that a man couldn't even find his mother's death notice on it."
Blaine King, Emporia junior and Jayhawker editor, said Kenneth Anderson, dean of the School of Education, sent memos asking various education professors to tell seniors who were away student teaching about the pictures.
Tub of Chicken
15 pieces, 5 hot rolls
$3.50
Patronize Your Kansan Advertisers
BIG BUY
Friday, April 13, 1962
But fellow NATO member Canada sat silent under Zorin's prodding.
U.S.-Britian Still Reject Unpoliced Test Ban
GENEVA—(UPI) The United States and Britain repeated today they are unwilling to join Russia in a new unpoliced nuclear test moratorium, but the Soviet Union claimed the majority of the world is on its side.
"All the powers here but you two," Russia's Deputy Foreign Minister Valerian Zorin taunted the Americans and British at the 17-nation disarmament conference, "are for a moratorium."
ITALY PROMPTLY said Russia was deliberately misinterpreting its statements.
The exchange came as it was revealed in London that Soviet Premier Nikita Khrushchev has sent a reply to Prime Minister Harold Macmillan's personal appeal Tuesday for a supervised nuclear weapons test ban.
AMERICAN Ambassador Arthur H. Dean opened today's 20th plenary session of the conference by reading into the record yesterday's State Department declaration that the United States "is not going to place its security at the mercy of an on-again off-again Soviet pledge."
Dean said he had asked his government for reaction to a proposal by Zorin yesterday for a new moratorium by all three great powers on nuclear testing for the duration of this conference, and that this was the reply.
THE STATE DEPARTMENT said Zorin's proposal must be judged in the light of past Soviet actions—when the Soviets agreed to a moratorium on testing for the duration of a conference to write a treaty prohibiting testing but nevertheless resumed testing while the talks still were in session.
Zorin said the American reply must have caused "a deep sense of disappointment" to all conferees and was "a heavy blow at the conference and cannot serve to strengthen peace."
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