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The cost of the major raw materials, steel scrap and coal, has also been declining, and for an industry which has generally been operating at less than two-thirds of capacity, its profit rate has been normal and can be expected to rise sharply this year in view of the reduction in idle capacity. Their lot has been easier than that of one hundred thousand steel workers thrown out of work in the last 3 years. The industry's cash dividends have exceeded $600 million in each of the last 5 years, and earnings in the first quarter of this year were estimated in the February 28th Wall Street Journal to be among the highest in history.
In short, at a time when they could be exploring how more efficiency and better prices could be obtained, reducing prices in this industry in recognition of lower costs, their unusually good labor contract, their foreign competition and their increase in production and profits which are coming this year, a few gigantic corporations have decided to increase prices in ruthless disregard of their public responsibilities.
The Steelworkers Union can be proud that it abided by its responsibilities in this agreement, and this Government also has responsibilities which we intend to meet. The Department of Justice and the Federal Trade Commission are examining the significance of this action in a free, competetive economy. The Department of Defence and other agencies are reviewing its impact on their policies of procurement. And I am informed that steps are under way by those members of the Congress who plan appropriate inquiries into how these price decisions are so quickly made and reached and what legislative safeguards may be needed to protect the public interest.
Price and wage decisions in this country, except for a very limited restriction in the case of monopolies and national emergency strikes, are and ought to be freely and privately made. But the American people have a right to expect, in return for that freedom, a higher sense of business responsibility for the welfare of their country than has been shown in the last 2 days.
Some time ago I asked each American to consider what he would do for his country and I asked the steel companies. In the last 24 hours we had their answer.
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