Show r s C r rJ I J G Es- Es GAME Racketeers Reported Moving In on Steel J I L. L KILGALLEN YORK May 23 INS INS INS- vI rs are muscling In on one of Americas America's basic Indus Indus- It t u used d to be beer slot ma- ma night clubs and the like wan Street Investment broker asked ked that his name be 00 with- with ltd In an Interview Fri Fri- pow bOW he be himself had been ed in fn a n steel deal dealo he turned down because it o 1 y 4 broker expressed no surat surat sur sur- at tt the disclosure being made D. D C. C before the I senate sedate small business tee A Pittsburgh steel broker testified testified testified fied before the subcommittee Thursday that he lost and was threatened by a couple of gunmen In a New York hotel while trying to work out a steel purchase purchase purchase pur pur- chase deal which was never con con- summated Tens Tells Proposition The Wall Vall Street broker revealed Friday that an acquaintance of his a man in the novelty and interior decorating business offered him a B proposition that would net them which they would split 50 SO as a commission to sa say nothing of the cut others involved In Involved Involved In- In In the tricky transaction would pull down I The racketeer predicated his proposition on the fact he could get steel for quick delivery This is a good trick when It can be be done because throughout the postwar period there has been a heavy demand for tor steel I Steel Is scarce in fact steel sheets are one of the country's counts greatest industrial shortages at the present time The Wall Wail Street broker said a afew afew afew few months ago it was suddenly whispered around In New York that steel sheets arc are available The query was put out If I get you ou sheets what will you pay for them The 0 O P A prices for tor sheets for foran foran an nn average of all gauges the broker explained ran from 60 to 75 a n aton aton ton t. t o. o b. b mill mUl After 0 O P A went of off the steel companies Increased prices but kept them within reason reason reason rea rea- son that is from 75 to 90 a ton Brokers Broker's Story The broker explaining how the racketeers are cutting In on steel told this story Now you must realize the racketeers racketeers racketeers rack rack- figure we investment brok brokers bro bro- k kers rs have Intimate connections with the users of steel sheets They regard us as an entry to sell what I call gray market sheets This fellow I 1 mentioned the novelty man asked me Have you any people who would buy steel sheets I said Sure we have lots lotsof lotsof of customers who use steel 1 I fie Pe said Okeh Ill I'll get Jet I tons Ions of sheets sheets any any specified gauge between 15 and 25 25 for for first quarter quarter ter delivery from the Chicago dis The racketeer said the price would be a ton which didn't I take Into account the racketeers racketeer's commission Went to User I went to the industrial user of steel the Wall Street broker con con- He said a high price for sheets but I cant can't get them through regular channels channels' He said hed he'd find out about details of delivery etc because he was interested in buying even though the price was outrageously high I went back to this fellow who had telephoned me in the first place I explained what the user had said He had to make a check and said he would call caU me back He did He said the payment would have to be made in three checks checks- one checks one ne of which fj figured red to an amount that equaled the regular mill price the other two checks being the difference representing commissions between the mill and my man on the telephone All three checks were to be de delivered delivered de- de livered to a clearing bank against the mill commitment to deliver the steel The broker said he went back to the steel user and gave him the thc facts They both agreed the steel was being diverted from regular channels to provide commissions for middlemen n not ord ordinarily in inthe inthe inthe the steel business We both agreed we didn't want any part of the deal and turned it down the broker said |