Higher & Higher

As expected the steel industry raised prices on its major products last week. U.S. Steel Corp. set the pace with an average boost of $9.34 a ton, and most other steelmakers followed with about the same amount. The increases will add an estimated $575 million a year to the U.S. steel bill, and send up the prices of durable goods all along the line. First to speak up were appliance makers, who predicted substantial price hikes for ranges, refrigerators, washing machines, etc., within four weeks. Yet many an industry, notably the automakers, had hardly finished raising prices to meet the third-round wage boosts.

In line with most automakers, General Motors Corp. last week raised all its auto prices 8% to make up for increases in pay and materials (up $80 to $1,160 on a Stylemaster Chevrolet business coupé; up $119 to $1,685 on a Buick Special 4-door sedan). And Chrysler Corp.'s K. T. Keller said that other carmakers would have to start figuring new retail price increases as a result of the steel boost. Said Keller: "When our costs go up, prices have to follow." Automobile men guessed that the price rises would average over $20 a car.