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STEEL CARTEL FILES
WASHINGTON.—Dozens of G.I.
investigators have been working
since the shooting war stopped to
help win another war. This is a
war against international big busi
ness, which recognized no national
boundaries, which used countries
only as market divisions for its
products, and which at one time aid
ed Hitler. Mussolini and Hirohito just
as much as it did France and Eng
land.
What the G.I. investigators have
uncovered in Germany is a tribute
to Nazi thoroughness and to the
gullibility of American big business.
For what it amounts to is a world
plan by which Germany expanded
its industrial capacity for war while
simultaneously curbing the industri
al capacity of this country and other
potential enemies.
And the names of the same men
who have been dickering with Tru
man over steel—Ben Fairless, Eu
gene Grace, et al.—have turned up
fn European files as part of the car
tel which unwittingly played into the
hands of the Nazis. It is a story
which the leaders of the steel in
dustry would like to forget. But
the justice department hasn’t for
gotten it.
American participation in the
steel cartel was decided upon as
late as 19.17—when there was no
longer any doubt regarding Hit
ler’s warlike intentions. By that
time he had already invaded the
Rhineland, showed his hand by
sending arms to Franco, and boast
ed openly in speech after speech
that Germany would dominate Eu
rope
The steel cartel files, seized
in Luxembourg, reveal that S.
M. Bash of Bethlehem Steel
and A. G. Mundle of 11. S. Steel
look the initiative in binding
their companies to the cartel.
Four months later an agree
ment to divide up world mar
kets was reached.
ANTITRUST ACT
The steel barons were careful
about the Sherman antitrust act,
however, and the minutes of the
June, 1917, meeting reveal that no
written agreement regarding U. S.
markets was concluded.
In February, 1938,a delegation of
European steel men came to the
United States.
“Our representatives,” the
Luxembourg files showed, “ob
tained a very clear declaration
of responsibility for the agree
ments from” Messrs. Eugene
Grace of Bethlehem Steel, Ben
Fairless of U. S. Steel, Rufus
Wysor of Republic Steel, Frank
Purnell of Youngstown Sheet
and Tube. M. Racket! of Jones
and Laughlin Steel, Charles
Hook of Armco International,
William Holloway of Wheeling
Steel, Robert Wolcott of Lukens
Steel, and Ernest Weir of the
National Sfeel corporation (Weir
ton and Great Lakes steel).
Also included in the American
group were Inland Steel, Newport
Rolling Mills, Pittsburgh Steel. Otis,
and the Allan Wood company.
RACE FOR WAR
. What the steel barons agreed to
was not only a division of markets
but arrangements for price-mainte
nance. Quotas were set regarding
the total production of each partici
pating company, with fines levied
against the firm if it exceeded its
quota.
However, here is the pay-off The
Germans always exceeded their
quotas, after which they politely
paid their fines and then kept on
speeding their output of steel in the
race for war. Meanwhile, American
and British firms stayed within their
quotas and kept down their war ma
chine.
In contrast with the Germans,
American firms, when they exceed
ed their quotas, were contrite and
apologetic. For instance, here is an
item from the steel cartel minutes
of April 18, 1939, which read:
“In regard to a recent ship
ment by the American group to
Belgium, i.c., a home market,
the American representative
stated that he was taking this
matter up with his group in
order to avoid a recurrence.”
How the cartel worked is also il
lustrated by a cable sent by Eugene
Grace of Bethlehem Steel to Sir
Charles Wright in London, dated
January 12, 1938, which read:
‘‘Glad to have your message and
talk with Elliot. I feel sure there
will be no question about perform
ance of member companies. Our
only diflculty will oome from out
side and uncontrolled interests. It
will be our hope to protect prices
and bring all influence possible on
uncontrolled interests.
CAPITAL CHAFF
Bob Hannegan will soon launch
an all-out drive to get the Presi
dent’s legislation program passed
on Capitol Hill. Hannegan’s first
target will be the minimum wage
bill increasing minimum wages to
65 cents an hour. . . . President Tru
man has begun a major shake-up of
the White House staff. The first to
go was Gecrge Allen who becomes
an RFC director. Next will be an
other Mississippian, the President’s
naval aid, Capt. James Vardamann
Jr., who wifi become a member of
the Federal Reserve board.
ALMOST everyone knows that
Joe DiMaggio is a great hitter
and a brilliant outfielder with a
stout arm. But what about the mat
-4 ter of psychology
||B|jHr or philosophy,
Hr' 'V* which is also a
BmIII kig but hidden
are cursed by
tension, especial
ilMil ly in slumpS.
„ i They are nearly
. all keyed up be-
DiMagg.o yond the safety
level. After bad days they can’t
sleep. They begin to brood. They
are tightened up. This has never
happened to DiMaggio, who is now
in the sunny South getting his legs
in shape.
“I’ll give you my philosophy,” Joe
told me a few weeks ago. “I rarely
worry about anything if they will
only let me alone. I do the best I
can and if that isn’t good enough
I can't help it. I never bothered
about making good with the
Yankees when 1 first reported, for
I felt that if I did n’t make good
there was always something else. I
quit baseball when I was around 14
or 15 years old because I got bored
with it. And 1 never thought I’d
get very far. Now when I get in
a batting slump it still doesn’t both
er me.
“Baseball is a great game, but it
still isn’t the only way to make
a living. Not with the taxes they
throw at you. I never played ar hail
game in my life where I didn’t give
all I had. But I took my bad days
with my good days. I\ly bad days
never had me worried. They still
had the best I had to give. You
can’t he good at any game when you
arc fretting, worrying, all loaded
down with too much tension.
“I never expected to be a good
ball player when I started, and
whatever happens to me is still vel
vet. I’m not worrying about being
in shape this next spring. I figure
I’ll be in shape. If I have a bad
year it won’t be my fault and it
isn’t going to wreck my life.
“My philosophy of life is to give
the best you have, and If that isn’t
good enough, try something else. I
have another angle—l haven’t any
interest in anyone else’s business,
I still don't see why so many have
an interest in my business. After
all, I’m just a hall player, giving
what 1 have to give on the ball field.
That’s my only job. I'll let ev
erybody alone if everybody will let
me alone.”
DiMaggio happens to be 100 per
cent right in this philosophy. Why
shouldn't a fellow live his own life?
Picking Season Opens
The Louis-Conn pickers are al
ready warming up, getting ready
for one of the most garrulous cam
paigns on record.
Gene Tunney, as you may have
heard before, is naming Louis in
from one to three rounds, “provid
ing that Louis is even close to the
Louis of four years ago.”
Tommy Loughran disagrees.
Tommy votes for Conn. The fact
that Tommy was one of our best
boxers undoubtedly influenced this
verdict in Conn’s favor.
"If Conn gets back in shape,
which I think he will,” Loughran
said, “I believe he will win. Billy
may have lost some of his speed but
so has Louis who after a long layoff
at the age of 32 can be even more
affected by it. Conn was much fast
er than Louis in their first meeting
and he will be just as fast this time.
“Hard punchers always had trou
ble with good boxers,” Loughran
continued, “Dempsey had most of
his trouble with Tom Gibbons and
Gene Tunney. In 35 rounds against
this pair, Jack had only one knock
down. Billy Conn has always been
a good boxer and at the age of
28 there is no reason why he
shouldn't be at least close to his
best. It will take a lot of hard work,
of course, but at 180 or 182 he should
be stronger, a harder puncher and
still the better boxer.”
It may be recalled that Tommy
Loughran was the sparring partner
who tipped many of the sharper
ones to Dempsey’s coming downfall
before the first Tunney fight in Phil
adelphia. In a fast thre°-round
workout shortly before the big
scrap, Loughran outpointed Jack by
a wide margin, although Dempsey
was throwing all the punches he
had in stock that day.
These two opinions are only the
beginning of a nation-wide debate
that will soon be picking up added
steam as the two heavyweights
move into their respective training
camps. The flow of words will soon
reach tidal-wave proportions.
Old-Timers' Session
In a gathering of old-timers a few
days ago, one made this point.
“While Conn is much faster on his
feet than Louis ever was, don’t for
get that Louis is just as fast with his
two fists as Conn is. Maybe faster.
Louis can wreck you with a short
punch and he can throw these
punches with lightning speed. They
travel faster than the eye can fol
low. Louis won’t lose much of this
hand speed, although his reflexe*
are bound to be slower.
THE HOME JOURNAL, PERRY, GEORGIA
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TUGMEN VOTE ON COMPROMISE ... The 10-day tugboat tieup that
shut off fuel supplies in New York City and curtailed nearly all business
activity ended when the owners of the 400 tugs and the union agreed
to arbitrate before a three-man board. Members of the union are shown
outside their headquarters as they voted on compromise measure to
return to work.
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THINK WE’RE GOING TO LIKE THIS PLACE . . . Showing various
emotions these three youngsters, shown shortly after their arrival from
England. They will make their homes with their G.I. Dads in Cali
fornia. Left to right: Patricia Conn, bound for San Jose, Calif.; Thomas
Hocker Jr. and Frances Karrman, who will both become citizens of
Los Angeles.
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‘IKE’ TELEVISION STAR . . . Smiling study of General of the Army
Dwight D. Eisenhower, U. S. army chief of staff, was transmitted by
television from Washington to New York City during the Lincoln memo
rial services. This was a test of the new inter-city coaxial cable, and
proved the possibilities for television photographs for current news events.
BOBBY HAS POSSUM PET , . . Bobby Underwood, 8, Detroit, Mich.,
is always surprising his family by bringing home strange pets. They re
cently made him get rid of two cats, a rat, rabbits and a rattlesnake.
The next day he showed up with the possum shown in his arms. Bobby’s
two-year-old dog does not intend to associate with a possum, according
to his tilted chin.
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ICKES TAKES A WALK . . . Har
old L. Ickes, the “Old Curmudgeon,”
resigned from President Truman’s
cabinet, with bitter attack on Cali
fornia oilman, Edwin W. Pauley,
nominee to naval post. Ickes
warned of new “Teapot Dome.”
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TASTES LIKE BREAD . . . Clinton
P. Anderson, secretary of agricul
ture, who recently issued dark
bread order, is shown as he tried
out the new 80 per cent rate bread.
He says it looks and tastes like
regular bread.
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REMAIN FOREVER . . . Reports
from Japan indicate that Emperor
Hirohito will remain the permanent
head of the Japanese government.
Photo shows him in one of the few
pictures in which he wore civilian
attire.
SOUTH ELECTS WOMAN . . . Mrs.
Helen Douglas Mankin, who was
elected as Georgia’s first woman
representative in a special election
to fill the unexpired term of Rob
ert Ramspeck, who resigned. She
won over 18 candidates.
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BLOLOCK YOUNGSTER . . . Cork
ey Emch, 2, Toledo, Ohio, who has
been taken to Boston to undergo the
famous Blolock operation. Doctors
discovered that he had no vein lead
ing from his heart to his lungs.