"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/ 

"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)