Contribution to Defeat

WPB this week charged two giant U.S. corporations with holding up the war program. The corporations: No.1 U.S. steelmaker Carnegie-Illinois (U.S. Steel subsidiary) and No. 4 U.S. steelmaker, Jones & Laughlin.

WPB specifically charged the two with "repeated, deliberate violations of priority regulations" since June 1941. The companies, said WPB, had kowtowed to favorite customers without regard for Government priority ratings, had shipped civilian steel while war orders waited.

Prime accusations: on Feb. 21 Jones & Laughlin was ordered to ship no steel pipe after March 14, except on preference orders rated A-9 or higher. Although the company had not manufactured such pipe since October 1941, it immediately put large quantities of high-quality steel into pipe production, and from February 25 to March 12 produced 570,000 feet of pipe. Only 12% of this total was delivered on rated orders. The rest went to civilian use. Summarized WPB: "These violations . . . contribute towards defeat of the declared intention of Congress ... to win the war."

With its blast WPB had shot its wad. The companies at once denied the charges. Under its sky-broad Presidential decree WPB could take over the plants and put them under Government operation. This is unlikely: producing more than 30% of the entire U.S. steel supply, the two corporations are too vital to be monkeyed with by anyone but crackerjack steelmen. WPB therefore flipped the whole thing over to the Justice Department with a meek "for appropriate action." The action: suits to enjoin future violations.

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