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XY, NOVEBER 2 4, i1963
I:
(ennedy
Led
Nation
Through
Domestic
Foreign
Crises
(EDITOR'S NOTE:
cond of a two-part
ennedy years.)
This is the
series on the
By The Associated Press
Government conflicts with the
nation's business community and
American achievements in space
also highlighted the Kennedy
years.
The nation's business communi-
ty gasped in April, 1962 when he
cracked down on United States
Steel Corp. for announcing a $6 a
ton- price increase after signing
a wage agreement with the United
Steelworkers Union.
. The administration had been
following the negotiations for a
contract with much interest. It
did not want one which would in-
clude a large wage increase in the
belief such an agreement would
force a price increase and be an
inflationary threat to the coun-
try's economic health.
Price Stability
A modest contract was reached
and the then Secretary of Labor
Arthur J. Goldberg hailed it as a
contribution toward price stabil-
ity.
When Roger M. Blough, presi-
dent of U.S. Steel, personally ad-
vised Kennedy of the price in-
crease, Blough touched off 72
hours of governmental activity
which he and his colleagues could
not have expected.
During that period four anti-
trust investigations of the steel
industry were conceived by gov-
ernment officials, a bill to roll
back the price increase was seri-
ously considered, legislation to im-
pose price and wage controls on
the industry was discussed, the
FBI questioned newspapermen in
the dawn and the Defense De-
partment--biggest buyer of steel
in the nation-began to divert
purchases away from United
States Steel. I
Double-Cross Kennedy
In a cold fury-aides said Ken-
nedy felt he had been double-
crossed by the industry-Kenne-
dy denounced the increase as
"wholly unjustifiable and irre-
sponsible defiance of the public
interest." He said the steel men
had shown "utter contempt for
their fellow citizens."
United States Steel finally
backed down after several major
companies said they would hold
the price line and Bethlehem Steel,
second largest steel company, re-
scinded the price rise it announced
following the United States Steel
move.
Blough and Kennedy met at the
White House again. The meeting
was called "useful and cordial."
The President told a news con-
ference "this administration har-
bors no ill will against any indi-
vidual, any industry, corporation
or segment of the American econ-f
omy."
Upset Remains
Despite this assurance, busi-1
ness remained upset by what its
leaders called government inter-
ference in its operations.
The administration quietly ac-I
cepted selected price increases in
the steel industry in April 1963
although reiterating its opposition
to any across-the-board rises. "I
opposed such an increase last year,
I oppose it now," Kennedy said.
Some quarters called a break in
the stock market May 28, 1962 a
reflection of lack of confidence
on the part of business. Secre-
tary of the Treasury Douglas Dil-
lon denied it. He said the break
showed "a weakening confidence
in the stock market"-that is, in
the high prices that prevailed be-
fore the break.
Sell Holdings
The stock market said in a
special report that the May plunge
was touched off largely by the
investment public's selling of long
term holdings.
By early November the popular
stock averages had recouped all
the ground lost in the precipitous
drop. Investors moved back, this
time interested in stocks which
showed good earnings and paid
good dividends.
A four-year-old dispute between
the nation's major railroads and
the unions over work rules landed
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in Kennedy's lap during the sum-
mer of 1963.
To Arbitration
With neither side able to ac-
cede to the other and a nationwide
transportation strike seemingly as-
sured, the President sought legis-
lation from Congress. There were
protestations about such a course
but Congress passed a bill provid-
ing for arbitration of the two
principal issues-whether diesel
locomotive firemen were necessary
in freight and yard service and
the size of train-service crews. It
also barred a strike for 180 days.
Kennedy followed the United
States' efforts to conquer space
closely.
Russians Pioneer
The Russians, who had pioneer-
ed in space exploration, had sent
two men into space, one on a 17
orbit mission, before Lt. Col. John
H. Glenn boosted American morale
by circling the earth three times
on Feb. 2, 1962. He was followed
by Lt. Cmdr. Malcolm Scott Car-
penter of the Navy who made an-
other triple round-the-earth flight
on May 5.
On Oct. 3 Navy Cmdr. Walter M.
Schirra, Jr. orbited the earth six
times. But before he did so the
Russians had sent two men into
twin orbits, one for four days and
the other for six.
The longest American space
flight ended on May 16, 1963. It
was a 22-orbit 34-hour flight by
Air Force Maj. Gordon Cooper.
Tandem Flight
This achievement was countered
by Russia the following month.
The Russians separately launched
a man and a woman, first of her
sex, into space. The ,man circled
the globe more than 81 times in
119 hours, the woman orbited 48
times in 71 hours.
Kennedy had expressed hope
that the United States would land
on the moon by 1970. He suggest-
ed that Russia and the United
States make a joint expedition
but Russia rejected the idea.
There were varied estimates on
how the President fared with
Congress, which was controlled by
his own Democratic party. Ad-
ministration leaders claimed that
the 87th Congress which met in
1961 and 1962 adopted 70 per cent
of the President's program. Sen-
ate Minority Leader Everett Dirk-
sen (R-Il) said, "Never in the
history of the nation has the Con-
gress spent so much time accom-
plishing so little as it did in the
second session of the 87th Con-
gress."
The 87th Congress rejected his
proposals for federal aid to public
elementary and secondary schools,
health insurance for the aged un-
der Social Security, a cabinet de-
partment of urban affairs, stiff
controls on production of surplus
farm crops and stand-by author-
ity to initiate public works proj-
ects and reduce income taxes to
combat economic recessions.
It passed the Trade Expansion
Act which gave the President an
unprecedented grant of new tar-
iff-cutting powers to use as a bar-
gaining lever for mutual tariff
concessions by the European Com-
mon Market and other non-Com-
munist countries.
By executive order Kennedy es-
tablished a Peace Corps to aid
underdeveloped nations and Con-
gress appropriated money for its
existence.
Democrats continued in control
of the 88th Congress which open-
ed in January, 1963. The 1962 off-
year election increased Democrat
representation in the Senate from
64 to 68, reducing the Republican
minority from 36 seats to 32. There
were 259 Democrats in the House
against 176 Republicans in con-
trast to 261 Democrats and 175
Republicans in the 87th Congress.
Before the 88th Congress were
two pieces of legislation which
Kennedy considered "musts." They
were the sweeping civil rights bill
and a broad tax reduction program
which the President said was need-
ed as a spur to the economy.
After much wrangling and ma-
neuvering, a civil rights bill was
reported out of the House Judi-
ciary Committee with bipartisan
support. Prospects of House adop-
tion appeared good, but there
was opposition in the Senate and
a matter of time that cast a
shadow.
The tax reduction program also
had critics who contended it
should be coupled with a budget
reduction. The House adopted a
bill which gave individuals and
corporations tax relief in a two-
step program beginning in Janu-
ary, 1964.
SERIOUS STEPS-From the start of his career as the nation's
chief executive, President John Fitzgerald Kennedy conferred
with world leaders, past and present. In this Pulitzer Prize win-
ning photograph, he discusses his office with former President
Dwight D. Eisenhower.
AT THE UN-President Kennedy appeared before the United Nations General
Assembly twice, once in 1961 and once this September. This year he praised the
"atmosphere of rising hope" for world peace generated by the nuclear test-ban
treaty and called for a joint United States-Soviet manned expedition to the moon.
Photographs by the Associated Press
LATIN AMERICA-Alliance for Progress in Latin
America has been a firm policy since President
Kennedy became chief executive. Here he re-
emphasizes the nation's oommitments at the
150th anniversary of Venezuela's independence.
EXPRESSION OF CONFIDENCE-Soon after the tragic death of another leading world figure, UN CONCERN FOR AFRICAN DEVELOPMENT-In July, President Kennedy compared Tanganylkan
Secretary-General Dag Hammarskjold, President Kennedy flew to New York. His mission: to President Julius K. Nyerere (left) to Washington and Jefferson. "We are also a revolutionary
express United States faith in the continuing ability of the UN to deal with world problems. His trip country, and a revolutionary people, and though many thousands of miles separate our continent
provided a strong boost for then Acting Secretary-General, U Thant (above). from Africa, today we feel extremely close," the President once told a group of African diplomats.
ii
"ICU BIN EIN BERLINER"-Only five months ago the Presi-
dent went to Germany to reaffirm United States commitments
and issued this welcome. The crowds who cheered him then,
poured into the streets again Friday in stunned silence and tears.
New Chancellor Ludwig Erhard (right), who accompanied him
then as economics minister, will attend the funeral tomorrow.
A HAPPY PARADE-In June, 1962, President Kennedy paid a NATO POLICY--The United States pledges strengthened con-
state visit to Mexico, where crowds estimated at more than one ventional and nuclear military forces in Europe, President Ken-
million people turned out to cheer him. In spite of past tensions nedy told the military committee of the North Atlantic Treaty
between the United States and Latin America, "we now know Organization soon after he took office. Lord Louis Mountbatten
where we are going - and we are on our way," he declared. of Great Britain (right) looks on.
ISA CULTURAL COMMITTEE
presents
DR. ANGELL
speaking on
"Cultural Change for a World Society-
Is It Possible?"
Tuesday 4:00
Nov. 26 Multi-purpose room, UGLI
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