Giant U.S. Steel Joins Price Hike
NEW YORK—(UPI) -- Big steel, apparently anticipating no repetition of last year's slapdown by the White House, raised its prices yesterday, joining the ranks of other lesser producers who preceded it in announcing increases.
Page 7
Giant U.S. Steel, which bore the brunt of President Kennedy's wrath last year when the industry tried to raise prices, announced it would make selective increases of $4.85 a ton on flat rolled steel which constitutes about 29 per cent of its sales.
Fourth-ranked Jones & Laughlin Steel Corp., sixth-ranked Armco Steel Corp., and eighth-ranked Inland Steel Corp., announced their own increases within hours of the nation's largest producer.
IT REMAINED only for Bethel-
hem Steel, ranked No. 2, to join the
other four top producers in the
price scramble. Third-ranked Rep-
ublic Steel announced its hikes
Monday.
The raises were expected to make the United Steelworkers Union more determined in its demands for higher wages.
One of the industry's leading trade publications, Iron Age Magazine, said the present market can absorb the price increases because conditions are vastly different from a year ago when Kennedy raised objections. Inventories are low, demand is brisk and picking up and the labor situation is quiet, the magazine said.
It has the right to re-open contracts with 11 leading steel companies anytime after April 30 and can strike 90 days after re-opening if it does not get what it wants.
PRESIDENT KENNEDY conferred with his economic advisers at the Vacation White House in Palm Beach, Fla., on the latest moves by the industry. There was a possibility he would amplify his recent statement that while he was opposed to across-the-board increases by the steel makers, he did not believe "selective price adjustments up or down" were out of line.
Apparently taking him at his word, U.S. Steel and others made their selections, although U.S. Steel's increases were lower than the $5-$7
general range of hikes announced by other firms.
Prices on the New York Stock Exchange dropped after the announcement by U.S. Steel President L. B. Worthington. Apparently investors feared that Big Steel's joining the other firms in the increases might prompt Kennedy to force the industry to back down again, observers said.
BUT THE MARKET came back and U.S. Steel showed a fractional increase on its common stock at the close.
Most of the nation's smaller steel firms were watching to see what U.S. Steel would do. Its announcement was expected to trigger immediate selective increases by these companies.
Wheeling Steel started the price rises last week. Yesterday's raises brought to seven the number of large producers who have made such announcements. Lukens and Pittsburgh followed Wheeling.
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Wednesday, April 17, 1963 University Daily Kansan
An Organizational Oversight LONDON — (UPI) — The British Railways reorganization plan includes closing St. Mark's Station even though a two-year improvement plan has just been completed. "In an organization as large as the railways things like this are bound to happen now and then," a spokesman said yesterday.
Kissing Driver Hits Car
Kissing Driver Hits Car
LAREDO, Tex — (UPI) — It cost
Carlos Roberto Garcia $25 for his
auto amour.
Police said Garcia, 20, kissed his wife while driving and his car hit a parked automobile. He was fined yesterday for careless driving.
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