Smiting the Foe

The call came at midafternoon from Roger M. Blough, board chairman of the U.S. Steel Corp., in New York City. Said he to a White House secretary: "I would like to see the President on a very important matter concerning steel." Could an appointment be arranged for later that day?

Even in a typically busy Kennedy week —which began with his throwing out the first ball of the baseball season, included some spectacular White House entertainments, and ended with a review of the Atlantic Fleet off the North Carolina coast — Kennedy could certainly find time to see Blough. The appointment was set for 5:45 p.m.

Flying down to Washington, Blough ar rived right on time. Ordinarily a somber sort, he appeared downright jolly as he entered the White House. Awaiting him, puzzled and just a bit apprehensive, was President Kennedy. For months, Kennedy had been cultivating Blough, allowing him back-door entry to the White House. He had reason to think that his attention to Blough had paid off: less than two weeks before, U.S. Steel had reached a contract agreement with the United Steelworkers that Kennedy hailed as "non-inflationary" and as an example of "industrial statesmanship." So what did Blough want to see Kennedy about now? Bitter Coincidence. The President found out fast. After only the barest exchange of amenities, Blough handed Kennedy a mimeographed statement. As he read it, Kennedy's disbelief turned to fury.

Blough's statement was an announcement that U.S. Steel, the polestar for the nation's basic industry, was increasing its prices by 3½% ($6 a ton).

What Kennedy (and Labor Secretary Arthur Goldberg, who rushed to the White House at summons from the President) said to Blough remains unreported—but it is certain that the U.S. has rarely had a madder President. When Blough left after 50 minutes, he looked far from jolly, yet he remained determined to go ahead with the price rise.

When Blough was gone, Kennedy strode furiously around his office, muttering: "Can you imagine those . . .!" Said an aide later: "I've never seen him so angry." To Kennedy, there was a bitter coincidence in the timing of Blough's announcement.

Just a year before, in the midst of his annual reception for the members of the Congress, Kennedy had learned that the U.S.-backed Cuba invasion had turned into a fiasco. Last week, on the date of Blough's White House visit, Kennedy was scheduled to greet the Congressmen again. Said he, with grim humor: "I'll never have another congressional reception."