Show U UI u. S Si S. PUTS CURB ON STEEL PRICE WASHINGTON April 17 UP uP- uP Th The nations nation's steel companies were expected Thursday to seek modification of the government order freezing iron and end steel prices to prevent inflation The companies companies compa compa- nies flies it was believed will ask to be protected against extreme and disproportionate disproportionate disproportionate dis dis- dis- dis proportionate hardship The order was issued Wednesday night In the administrations administration's most spectacular move to control prices It dealt with the country's basic Industry upon which the whole defense defense defense de de- de- de effort rests Move l lilts Inflation It was as officially designated a move to prevent price spiraling and inflation under impetus of the hour cents wage increase just granted steel workers at an annual cost of to the Industry In In- in- in Steel and Iron got the first price ceiling established by Leon Henderson Henderson Henderson Hen Hen- derson In h his new capacity as administrator administrator administrator ad ad- of the office of price administration and civilian supply Henderson ordered that thet henceforth hence hence- forth forth or or until his order is modified modi modi- fied iron fied-iron iron and steel prices shall not exceed those prevailing In the first quarter of 1941 A sharp and bitter dispute seems likely in view of the fact qualified spokesmen for the industry Insist some companies would be severely hurt and that all would suffer hardship if they were not permitted permit permit- ted to raise prices to compensate In part for the wage increase Some of the smaller companies said Mid to be the hardest hit by the wage increase were believed to have ave been about ready Wednesday to announce price rises rises Emphasis Henderson put on the tentative nature of his price order suggested to some observers here that It was hurried into effect Wednesday night to check the plans of individual companies to raise prices to meet increased la labor or costs He said he Issued the order to prevent higher steel prices for the immediate present and indicated that it was designed to be in effect until the government could determine determine de de- termine the effect of emergency boom time conditions on industry operation profits production costs and related matters preliminary to possible change in the price level Sees Wide Dangers Steel price increases at this time he said might touch off a general increase In the cost of living living living liv liv- ing and start the country off oft on the road to inflation Presently the ultimate consumer would find that he must pay more for what he buys and so the foundation would have been laid for a dangerous upward upward up up- ward ard spiral of prices in general general- meaning briefly a boost in m the i cost of living 1 j 4 This action he continued also forecloses arbitrary or precipitate precipitate action on the part of any member j or group of members of the industry industry indus indus- try try looking toward price boosting and it eliminates premiums for advance advance advance ad ad- vance deliveries which a few companies companies com corn ponies have ha already begun to exact ex ex- act We are Immediately taking steps to resolve the prevailing uncertainties uncertainties uno un un- o certainties as to cost factors production production production pro pro- requirements and distribution distribution distribution tion both as to defense and civilian needs Meanwhile prices should not be advanced If If facts are developed which show that an increase might be warranted the necessary adjustments adjustments adjust adjust- ments can be made |