"IRRESPONSIBLE DEFIANCE OF THE PUBLIC INTEREST"

JFK ANGRY AT STEEL EXECUTIVES PRICE HIKE DECISION

Washington, D.C. (JFK+50) On April 11, 1962, President John F. Kennedy made an opening statement at his news conference lambasting steel executives for their decision to raise prices.  Mr. Kennedy called the action a "wholly unjustifiable and irresponsible defiance of the public interest."

JFK argued that the 'inflationary' price rise would result in higher costs for American consumer goods and make it more difficult to sell American products overseas.

The President said...

"The American people will find it hard...to accept a situation in which a tiny handful of steel executives...can show such utter contempt for the interests of 185 million Americans."

Pressure from the White House forced U.S. Steel and other major steel companies to roll back their price hike. 

 

 

Steelmark Logo

by Hydragyrum (2012)

www.wikimedia.org/ 

"A WHOLLY IRRESPONSIBILE DEFIANCE OF THE PUBLIC INTEREST"

JFK LAMBASTS STEEL PRICE HIKES

Washington, D.C. (JFK+50) On April 11, 1962, President John F. Kennedy lambasted steel executives on their recent price hike.  In an opening statement at his afternoon news conference, the President said...

"The simultaneous actions of United States Steel* and other leading steel corporations increasing prices by...six dollars a ton constitute a wholly unjustifiable and irresponsible defiance of the public interest."

JFK went on to tell reporters that the "inflationary" price rise by steel companies would result in higher costs on many consumer products and would make it more difficult to sell American products overseas.

The President concluded his statement with these words...

"The American people will find it hard, as I do, to accept a situation in which a tiny handful of steel executives...can show such utter contempt for the interests of 185 million Americans."

Pressure from President Kennedy ultimately forced US Steel and other major American steel companies to rescind their price hike.  Rex Bradford details three important actions by the Kennedy administration which forced the steel companies to back down....

1. The Defense Department announced plans to review steel contracts and switch to lower cost suppliers.

2. The Justice Department launched an investigation into the actions of the steel companies which might have violated monopoly laws.

3. The President explained publicly why the price hikes were a threat to the public interest.

*United States Steel Corporation was founded in 1901 by Elbert Gary, Charles Schwab, William Moore and JP Morgan.  USSC, headquartered in Pittsburgh, PA, is the 2nd largest producer of steel in the U.S. 

SOURCE

"JFK and Steel, Bush and Oil," by Rex Bradford, September 2, 2008, Mary Ferrell Foundation, www.maryferrell.org/ 

 Steelmark Logo

American Iron & Steel Institute

Graphic by Hydragyrum (2010)

"MY FATHER ALWAYS TOLD ME BUSINESSMEN WERE SOBs..."

BIG STEEL COMPANIES THREATEN U.S. ECONOMIC STABILITY

Washington, D.C. (JFK+50) On April 10, 1962, President John F. Kennedy was informed that United States Steel Corporation was raising prices across-the-board to $6 a ton.  The news came on the heels of a settlement between US Steel and the steelworkers union.  Chairman Roger Blough* gave the unwelcome news to the President.

The price hike represented an increase of 3.5 per cent and The Christian-Science Monitor wrote..."Big Steel chose to deliberately antagonize the President."  Before his intercession between labor and  management, JFK had been told by the Council of Economic Advisers that an increase in steel prices would be "the greatest single threat" to economic stability.

The President had been successful in convincing steelworkers that it would be in their best interest and that of the country for them to accept arbitration on their recent contract.  In light of the union's support, JFK was furious when he learned of the price hike by US Steel.    JFK felt he had been "double-crossed" by the steel company.  

The President commented privately...

"My father always told me that all businessmen were SOBs, but I never believed it until now."

Publicly, the President said that big steel companies were led by...

"....a tiny handful of executives whose pursuit of power and profit exceeds their sense of public responsibility."

The Steel Crisis of 1962 was resolved on April 13, 1962 when U.S. Steel announced it was rescinding the price hike.  Mainstream commentators of the time expressed support for President Kennedy's response to the crisis.

*Roger M. Blough (1904-1985) attended Susquehanna University & was chairman of the board & CEO of USS 1955-1969.

SOURCE

"The Steel Crisis of 1962," by Rex Bradford, September 2, 2008, www.maryferrell.org/

JFK+50 NOTE:

This is the 3000th post of JFK+50 which began in November 2010.

Roger Blough and JFK (1961)

JFK CALLS OUT STEEL EXECUTIVES

JFK CALLED OUT STEEL EXECUTIVES 52 YEARS AGO TODAY

Washington, D.C. (JFK+50) In an opening address at his afternoon news conference 52 years ago today, April 11, 1962, President John F. Kennedy lambasted steel executives on their recent price hike.  JFK called it a "wholly unjustifiable and irresponsible defiance of the public interest."

JFK went on to tell reporters that the "inflationary" price rise by steel companies would result in higher costs on many consumer products and would make it more difficult to sell American products overseas.

The President concluded his statement with these words:

"The American people will find it hard, as I do, to accept a situation in which a tiny handful of steel executives...can show such utter contempt for the interests of 185 million Americans."

Pressure from JFK forced US Steel and other major American steel companies to rescind their price hike.

TRUMAN FIRED MACARTHUR 63 YEARS AGO TODAY

Washington, D.C. (JFK+50) President Harry S Truman fired General Douglas MacArthur from his command of UN forces in Korea 63 years ago today, April 11, 1951.

Truman's decision came after a long dispute between the Commander-in-Chief and his top general in the war in Korea.

The dispute began when MacArthur personally told Truman in a meeting in October 1950 that the probability of the Communist Chinese entering the war was "slim".  

Then, later in the year, after Chinese troops crossed the Yalu River into Korea, MacArthur asked Truman for permission to bomb China.

General Omar Bradley disagreed with MacArthur's advice by saying:

"This is the wrong war, at the wrong place, at the wrong time, and with the wrong enemy".

President Truman said:

"I believe we must try to limit the war in Korea....so there will be no doubt or confusion as to the real purpose and aim of our policy."

                 MacArthur and Truman

JFK ANGRY AT NEWS OF STEEL PRICE HIKE

April 10, 1962


JFK ANGRY AT NEWS OF STEEL PRICE HIKE


On the heels of a successful brokerage of a settlement between US Steel & the steelworkers union, JFK was informed today by Roger Blough, chairman of US Steel Corporation, that his company is raising steel prices by $6 a ton, or 3.5 per cent.


Before his intercession between labor & management, JFK had been told by the Council of Economic Advisers that an increase in steel prices represented "the greatest single threat" to economic stability.


JFK, therefore, convinced steelworkers that it would be in the best interest of the country to accept arbitration on their contract.


Unnamed sources say that the President is very upset, to put it mildly, about this turn of events & feels "double-crossed" by US Steel executives.


One staffer said shortly after receiving the bad news from Mr. Blough, the President said:


"My father always told me that all businessmen were SOBs, but I never believed it until now."

               Roger Blough & JFK (1961)


April 10, 1963


SNIPER FIRES SHOT AT GENERAL WALKER


Retired US Army General Edwin Walker narrowly escaped death around 9 o'clock this evening when a sniper fired a rifle shot through a window at his Dallas home.


The bullet struck the wall just above Walker's head as he sat at his desk.  


Reports say while the General was grazed in the arm by shrapnel he is otherwise fine.


An eyewitness, a 14 year neighbor boy, told police he saw 2 men drive out of a church parking lot adjacent to Walker's home just after the shooting.


Police continue to investigate but there are no known suspects in the case at this time.


General Walker, an unsuccessful candidate for governor of Texas last year, had been dismissed from the army for passing out right-wing "John Birch" literature to his troops.*


*The attempted shooting of Walker remained unsolved until December 3, 1963 when the Warren Commission, investigating the assassination of JFK, determined that Lee Harvey Oswald was the man who had fired the shot at Walker.  The Commission based their conclusion on a letter that Oswald had left for his wife, Marina, on April 10, 1963, photographs found in Oswald's effects & testimony of firearms experts. 

                            Edwin Walker


April 10, 1963


ATOMIC SUB SINKS WITH TOTAL LOSS OF CREW


The atomic submarine, USS Thresher, sank in the Atlantic Ocean, off the coast of New England, today while on a training mission.


It is reported that the entire crew of 129 including officers, sailors & civilians have perished.


Launched in 1960, the USS Thresher was the 1st of the new class of atomic submarines which are said to be quieter & can reach greater depths than previous atomic subs.


*JFK ordered all flags to be flown at half-staff in honor of the victims.  Later an investigation showed that a short circuit in the electrical system of the sub prevented it from surfacing.  The US Navy took corrective action to prevent future such tragedies.

             USS Thresher, April 1961


April 10, 1942


DEATH MARCH BEGINS ON BATAAN


More than 75,000 Filipino & American troops, captured by the Japanese on Bataan, were marched out today to a prisoner of war camp about a hundred miles away.


There are reports that the prisoners are being mistreated & given little to eat or drink.


The march is expected to take about a week.*


*The Bataan Death March lasted 6 days & some of the victims were brutally executed while others succumbed due to lack of food or water.

           American POWs on Bataan


April 10, 1941


STATE OF CROATIA IS CREATED


The armies of Germany & Italy invading Yugoslavia have set up the independent state of Croatia today.


National leader, Ante Pavelic, is to be put in control a pro-Axis regime in the new state.*

*In the coming days, more than 350,000 Serbs, Jews, Gypsies & anti-fascist Croatians will be massacred at the hands of the pro-Axis regime.

                           Ante Pavelic


April 10, 1933


CCC ESTABLISHED BY FDR


President Franklin D. Roosevelt created the Civilian Conservation Corps, or CCC, today.


The CCC will be a public works relief program intended to serve the dual purpose of providing employment during the Great Depression as well as protecting America's forests.


The agency will offer jobs to unemployed, unmarried males between the ages of 18 & 26.


In speaking about the benefits of the CCC, FDR said:


"The forests are the lungs of our land (which) purify our air & give fresh strength to our people."*


*The CCC, active from 1933 to 1942, will employ over 3 million men.

April 10, 1919


ZAPATA SHOT TO DEATH IN MORELOS


Emiliano Zapata, leader of peasants during the revolution in Mexico, has been shot to death in an ambush in Morelos.


Zapata, who raised an army of peasants in 1910 under the slogan "Land & Liberty", opposed the central government of Mexico under Madero, Huerta & Carranza.


Zapata apparently was tricked into meeting with one of Carranza's generals & was shot upon his arrival for the meeting.


Zapata's "Plan of Ayala" was intended to seize all foreign land & land taken from Mexican villages.

                       Emiliano Zapata