President Kennedy Angered By Steel Price Increase OFF;SHORE WEATHER North to northwest winds 10-20 knots today, tonight, and Thursday. Fair except patches of night and morning fog. JHumboWt WEATHER FORECAST For Eureka and vicinity: Fojr loday, tonight and Thursday, some coastal (og or low clouds late tonight and Thursday morning. Not much change In lem- peralure. High 55-60, low 42-48, Winds north or northwest 10-18 mph. Precipitation: 24 hour amount 0 To dale this season 25,63 To this date last season 36.30 Norms! to date 33.91 Sunrise: m. Sunset: fi:52 p. i Vol. 91--No. 86--Phone, H! 2 - 1 7 I I ' EUREKA, CALIFORNIA WEDNESDAY EVENING, APRIL 1 1 , 1962 (Oc Per Copy 32 Pages Today NY CITY TEACHERS STRIKE THOUSANDS OF KIDS GO HO Public Denunciation Expected From JFK; Price Up $6 A Ton WASHINGTON HOT -- An angry President Kennedy discussci U.S. Steel Corf's surprising $6 a ton price hike with key adviser: today-as a prelude to an expected, public denunciation of the move later in the day. He may couple his statement with a plea to the other segments of the steel industry not to go along with U.S. Steel, which usually sets the pace for the industry. Two antitrust Investigations were initiated immediately aftei the price rise was announced late Tuesday. Labor Secretary Arthur J. Gold berg was among a cabinet grou which met with the President a breakfast.conference where th steel situation figured prominent ly in the discussion.. Kennedy was pictured by hig' administration sources as ex treraely unhappy about the pric hike. He was said to be ready to convey his mood to the Amer ican people at a 12:30 p.m. PST lng fi rm _R e public-indicated would follow U.S. Steel's leai news conference. The increase was just five days after the signin of a new union contract whici called for a one-year wage freez but provided additional fringe benefits. The administration ha hoped the contract would ' aver 'any steel price boosts this year Assistant- Press Secretary An drew Hatcher declined to cate gorize the President's mood be cause: "I think the President's statement at his press conference will reflect his temper." Hatcher said Kennedy's firsl news of the steel price increase was brought from Pittsburgh by U. S. Steel P r e s i d e n t Roger Blough. The steel company official saw the President at 5:40 p.m. EST and the President Blough and Goldberg discussed the price hike for 55.. minutes. During this meeting, Kennedy was understood to have expressed his strong opposition to the increase which the administration regards as a blow to chances ol price stability. At the opening of the stock market today, steel shares went up and common non-steel stocks, including some other metals, were showing a rising trend. Justice Department and Senate investigators were ordered to begin investigating possible price- fixing if similar increases are put into effect by other "big steel" firms. Kennedy, who has hailed the wage agreement as non-inflationary, was ready to assail U.S. Steel's latest move in "strong terms," an administration source said. Fear Inflationary Spiral The President had a ready-made forum to express his views. He was scheduled to hold a nationally televised news conference this afternoon and was certain to be questioned about the price boost. The increase was seen as a severe jolt to the administration's hopes for preserving price stability at home in a time of crisis abroad. The President was said to feel that the rise in steel prices was a short-sighted step that might touch off an inflationary spiral. U.S. Steel President Leslie, Worthington defended the across- the-board increases as "modest" and necessary to "catch up" with mounting costs since steel prices were last raised in 1958. The steel industry cooperated last fall when Kennedy asked it to hold the line on prices even though slcel workers received a wage increase averaging from 7 to 10 cents an hour under the I960 contract. Republic To Increase Price Most government economists anticipated that sled producers would forego any price increase now because of the relatively in expensive 1962 labor pact and stif fer competition from aluminum plastics and steel imports. If other firms follow U.S. Steel's example it could mean highe prices on autos, refrigerators ant washers for American consumer later this year. At least one olher big steelmak shortly. Other giants in the basii industry said .they would review their prices, too. Steel Stocks Pace Market NEW YORK (UPI)-The stock market surged ahead in heavy early dealings today with steel shares holding the spotlight. High speed tickers ran behind loor transactions through the first 37 minutes of trading. Every steel stock listed ran ahead from 1 lo 3 points at the ipening and held most of their ;ains thereafter, in response to a :6 a ton price increase by U.S. Steel, which gained 2. Wall Slreeters said the action ly the nation's largest producer has rekindled inflation talk and irovidcd fresh incentive to buy :ommon stock as a hedge against Dossible declining buying power if the U.S. dollar. Tobaccos were also strong show- ng gains in some instances of ut to 2 points in a further re- overy from recent heavy selling. Price Rise Expected For 1963 Autos DETROIT (UPI) -- The auto i: duslry, handed a $90 million bi for higher steel prices, is expec ed to pass it on to the America consumer next fall by raising tl price of 1963 model cars by pe haps $50. The list price of 1982 mod cars, however, is not expected be affected by j the $6 per to steel increased announced Tue day night by U.S. Steel Corp. That was the unofficial consei sus in the industry. Officially, th five big carmakers began stud ing the unexpected steel pric hike. Says Increase Unwarranted One industry executive com mented privately that, "We'r very unhappy.- The steel price in crease is unwarranted." Industry sources said no boo: in car prices is likely, during Ih 1962 model run because the indu try historically announces a basi price each year and .sticks with until new models come out. In addition, carmakers alread lave an average one-month stoc] pile of steel -- an inventory bui ip as insurance against a poss ble steel strike. This steel wa purchased at the old price. The industry has not had a gen eral across-the-board increas ince 1958 -- the time of the las major steel hike. Then price vent up about 2 per cent, or $5 n a $2,500 car, an average tha may be matched this year. The industry uses upwards of 15 million tons of steel a year for ars, trucks, other transportation chicles, and spare parts. Be ween one and two tons of stee re used in cars. . Steel The Bellwether Thus, the steel hike would mean $6-12 basic increase in car costs Jut the total bill would be $90 lillion. Besides, steel is usually bellwether for other industries roviding auto materials. So the ar unit cost could be higher han $12. Democrafic Leaders Dismayed By Rise WASHINGTON (UPI) -- Demo- ratic leaders in Congress today urging of the President and which xpressed dismay at U.S. Steel's nnouucement of a $6 a ton price icreasc. Senate Democratic Whip Hubert H. Humphrey, Minn., said it "pos- ibly destroyed an effort to hold ack inflation." "Regrettably," he said, "steel management has failed lo cooper- te" with the administration's ef- ort to keep price lines steady. Republican leaders Sen. Everett lirksen. 111., and Charles Haleck, Ind., declined comment un- 1 they had studied the developments. So did Speaker John W. ilcCormack. To Begin Inquiry House Democratic Leader Carl Ibert, Okla., said the price rise 'as "unfortunate" and "I'm sor- y to hear it." Sen. Esles Kefauvcr, D-Tenn., iiairman of a Senate antitrust ubcommittee, said he had or- crcd his staff lo "begin an ini- lediale inquiry inlo Ihe matter." He called the increase "shock- ig and irresponsible. "I do not sec how il can be islificd by (he wage agreement which was negotiated upon the was supposed lo be noninflalion- ary." On Republican, Sen. John Sherman Cooper, Ky., said "I think it's a mistake." Sen. Gale W. McGee, D-Wyo., called it a "betrayal of a united effort of all elements of our economy to hold the price line." Contrary To Agreement Sen. J. W. Kulhright, D-Ark., said "It's contrary to what I thought was the whole purpose of this settlement.' Sen. Wayne Morse, D-Orc., said "I know of no facts to justify the increase. I hope they can prove their case. Sen. Albert Gore, D-Tenn., was "upset" and Sen. George Smalh- crs, D-Fla., found it "most unfortunate and regrettable." Rep. Henry 0. Rcuss, D-Wis., of tlie joint congressional economic committee said it "couldn't have come at n worse lime" and hoped that the ndminislralion would investigate, and if il found the increase unjustified, "attempt lo bring Ihe force of.puhjic opinion on the steel companies lo re- NEW YORK. -- Students wave from behind picketing teachers in front of Central Commercial High School here today as thousands of New York City school teachers went on strike for higher wages.. A spokesman for the United Federation of Teachers, which called the walkout, said he "expected every school" in the city would be picketed. Some 40,000 teachers and more than one million pupils are involved, f UPI Telephoto) Atomic Blast By May Day Due For U.S. WASHINGTON (UPI) - Indica ons today were that the first at- lospherie nuclear blast in the ew U. S. tesl series will be set ft April 30 or May 1. A well-informed official said he ould nol give an exact dale, but (her of those two days would be "very close guess." . The United States thus was giv- g Soviet Prmicr Nikita Khrush- icv 20 days to reverse his posi- on and agree to an inspected st ban treaty if he wants to halt e proposed U. S. series. No Real Hope Officials said the offer to sus- end the tests in return for a heat-proof treaty would be kept icn until the last minute. They acknowledged, however, at they had no real hope that ussia would change its position id agree to an international in- ction system to police a ban. Secretary of State Dean Rusk iparently became convinced at e Geneva disarmament confer- ice that Russia planned another ries of atmospheric experiments its own -- whether or not the nited States tests -- and had no isirc for a treaty at this lime. British officials still clung lo the ope that some last-m i n u I c ;ive" in the Soviet attitude ight permit postponement of the merican scries. New Premier For France Saturday PAD IS (UPI (-President Charles 1 1 Gaulle will accepl Premier iclicl MHO'S resignation Sntur- iy and will name bunker Geor- S Pompidou lo succeed h i m , re- ihle political .sources said loday. Con'f Trusf World To Red Pledge: U.S. GENEVA- (UPI) -The United States warned today it will no submit its own security and tha of the free world to a "paper pledge" that Russia will never again test nuclear weapons. "The motivation for developing new weapons which was stronf enough to lead the U.S.S.R to break its self-imposed pledge not to be the first state to resume nuclear tests would well lead il o attempt the clandestine viola- ion of a nuclear test ban treaty," chief U. S. delegate Arthur H. Dean warned. Dean told the 17-nation dis- drmament conference the U. S. and British governments have made one concession after another in an attempt to meet Soviet 'ears that an inspected nuclear est ban treaty would be used as cover for espionage. No Good Will Â· "There has not been the slightest demonstration of Soviet good will or flexibility," Dean went on. "On he contrary, the Soviet Union has made evident, by its conduct last all, just how much it values the conduct of tests for the development of new weapons." He rend into (he record Monday's joint appeal lo Soviet Premier Nikila Khrushchev by Prcsi- Icnt Kennedy and British Prime Minister Harold Macmillan to re- -onsider and accept the principle if international vcrfication of a est ban treaty. 'There is no further appeal vhieh I can make here to my iovict colleagues," Dean said, 'beyond my oft-repeated plea for hem to show some rcasonnble- icss, flexibility a n d political icnsc." "Dut we must insist," Dean mid, "Hint il is too risky to free vorld security to setllc for a trca- y which amounts to a paper ilcdge that cannot he monitored n a number of essential aspects." The first reaction of Soviet Deputy Foreign Minister Valerian Zorin was not hopeful. He insisted existing national detection systems are able lo detect and identify all nuclear tests in the atmosphere, in outer space and under water at long range without the need for international inspection. The eight neutral participants at the conference, meanwhile, prepared a joint scheme aimed at breaking'the East-West deadlock before the United States resumes nuclear tests in the atmosphere. Gorgeous George's Wife Asks Divorce LOS ANGELES (UPI) - The wife of Gorgeous George, the pret ty boy of professional wrestling filed for divorce Tuesday anc charged her g r a p p l e r-husbant with failing to see the difference between his wedding ring and thi wrestling ring. / Mrs. Cherie George charged the 47-year-old strongman threatened to kill her "on many occasions,' and became "antagonistic anc Dclligcrent" when drunk. Mrs. George asked "reasonable" alimony and child support for heir two-year-old son in the Superior Court action. Mighty, Muddy Theff Effort * * * * * * * * Stolen Car Stuck, Thieves May Be City police today are searching 'or a stolen Mercury sedan, taken ast night by thieves who apparently abandoned an Oldsmobile stolen earlier and stuck in the mud near First and V streets. A tow truck, also stolen, was tself stuck in the efforts of the cated that the thieves must have hief or thieves who apparently ook the other two vehicles. "Someone wanted that I960 Olds pretty bad," investigating police of 2135 First street and leaving ifficer Don Taylor said today. Ef- orts to free the mired vehicle, iwned by Donald Ghcra of Eureka, including running the heavy ow cables off the truck's winch the area. The Sparks 'crs. He wll board (he Thomns A. Norfolk, Vn, and stealing of tools from a shed on the nearby Ghcra property. An effort also was made to steal the Oldsmobile's spare wheel and tire, found abandoned a short distance away. Taylor said the evidence indi- worked for at least two hours before giving up and stealing the Mercury, owned by Albert Sparks car is (wo Â· tone A-Sub Cruise For Kennedy Friday WASHINGTON (UPI) -- Presl- lent Kennedy will take his first Tuise aboard a nuclear-powered Nilaris missile submarine Friday hopes today that the lliioves may during two days of naval tnnneu- be stuck again, this time with car green, dark over light, and is a iour-door sedan. The license number is being furnished by the Department of Motor Vehicles at Sacramento today and an all- points bulletin for Ihe missing car and ils occupants will be broadcast on ils arrival. The low (ruck was slolcn from Ihe nearby properly of Ihe Lyman Repair Service al 210 V street. Police and Sparks had high Police Called To Quell Rioting At One Struck School NEW YORK (BIT -- Thousands of public school students were sent home today and rioting .closed one school shortly after disgruntled teachers in the nation's largest school system had struck for higher salaries. The Board of Education reported that the teaching staffs at a number of the city's 840 schools w ere so reduced by the strike that older students whose parents were not working were sent home. All schools were open, the board said, but attendance wag limited to 40 pupils for each ^teacher. Most students reported to the! classrooms this morning and wcr encouraged to do so by plcketin teachers, who began to march ou side schools in the five borough at 6:30 a.m. Many classes wcr eing conducted in orderly fashio by teachers who crossed the Uni ed Federation of Teachers picke Incs or by supervisory employes However, 2,300 students wh gathered in the auditoriui at Seward High School becam rowdy when the bell rang for th commencement of classes. The 1 non-striking teachers in charg were unable to control the stu dents and six policemen wer called. The policemen also were unabl :o handle the shouling, fightini students and they were orderec out of the school building. Th( 'ighting continued in the street until the studenls dispersed. Thi school was closed as a safet; measure. The exact number of teacher: participating in the strike was no mown. George Washington High reported only 52 of 127 leacher n attendance while Manhattan ligh reported 100 per cent teach r attendance. The union claim: .5,000 members among the city': 40,000 public school teachers. May Lose Jobs The teachers, who voted t( strike 2,544 to 2,231, face loss o their jobs under the slate Condon Vadlin bill. They currenlly earn 4,800 to $8,600 a year and have jeen offered wage increases total ng $28 million--a $700 annual in :rease. The union's final demand vas for increases totaling $53 million. Less than 5,000 UFT members articipated in Ihe balloting anc lie strike was approved by a nar- ow margin of 313 votes. But un m officials confidenlly prediclet lat the walkout would be sup orled by a majority of the teach- rs and that the widespread ab- ence would close the doors ol early every school in the city. Board of Education officials larply disagreed. School Board lo Meet Shortly after the strike vote was isclosed, school Supt. John J. hcobald announced that "schools 'ill be open." He also said he U. I. Welcome For Iran Shah, Queen expected a majority of the teachers lo report for work despite the strike call. Full police protection, was promised and 12,000 patrolmen were assigned to strike duty. The Board of Education was scheduled to meet at 10:30 a.m. loday lo discuss what new steps could he taken to meet the crisis. There was a strong possibility that legal pressures, in two separate forms, would be brought to bear against the teachers in an iffort to nullify the walkout. WASHINGTON l U P H - Shah [ohamed Rcza Pahlcvi of Iran nd Queen Farah arrive in Washigton loday to be greeted by resident and Mrs. Kennedy. The royal visitors were sehod.jj,, ,i lcn . , c l| s fa,ing , hc ' squore cd lo arrive from New Yorkj.,cross from the old fort and ward President Kennedy's plane,waved handkerchiefs, towels and oilier belongings to relatives keeping a vigil in the square. New (astro Session On Releases Set HAVANA, Cuba (UFD--Mem- bers of a Cuban exiles commit- ee were hopeful today that they could obtain the release of 1,179 Jay of Pigs invasion prisoners leing held by the Castro government for $62 million ransom. Four exiles, representing the so- called Cuban Families Committee r or the Liberation of Prisoners of rt'ar, flew here Tuesday from Miami and met with Premier Fidel 'astro for four hours in an at- empt to scale down his demands. Another meeting with Castro has been planned but the committee r as unable to say when it would e held. Seeks U.S. Dollars The delegation had been author- zed to offer $28 million in goods ind products to meet Castro's tiff terms. But the Cuban leader ras reported seeking cash in U.S. lollars for the release of the men, vho were sentenced last Saturday o 30 years at hard labor after a our-day mass trial at Havana's rincipe Prison. Castro met with the committee t the home of the mother of one f the prisoners. Relatives of the risoners in Havana noted that aslro went out of his way to all on the representatives of the uhan exiles instead of having :em come to him. They said it Â·as indicative of the importance ic revolutionary government at- iches to the negotiations. Casfro Sees Prisoners A government spokesman said lal following the long meeting, astro went directly to Principe rison, where the invaders are eing held. II was reported that 'ter his arrival shouts of Jny ere heard from inside (he prison. Sonic of (lie prisoners appeared rouble. Sparks lold officers thai the Cdison for n one-hour cruise off transmission is defective and thai il locks in two of the gears, |hoiisi\ noon EST for a three-day state isil. Trumpeters will herald their ar. val at National Airport. After eing greeted by the President id First Lady, the Shah and neon will receive a 21-gnn salute. The national anthems of Iran ond the United States will be played. After airport ceremonies they will ride in a niolorriufo lo Blair House, the President's guest FIVK DAY FORKCAST SAN FKANC1SCO (UPD-Fivc- day weather forccasls: Northern California: R a i n likely north portion and possibly elsewhere around weekend. Temperature nhnvo normal becoming near normal nroiind Friday. Normal minimum-mnximum Sac- nimenlo 4n-7fl, lied liluff 48-71, j Kuroka 45-50, lllue Canyon 36-54.
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