Several problems contribute to the slump in the American Steel Industry but the No. 1 culprit is “Illegal dumping” of imggrted steel at prices low production costs, made possible by subsidies by some governments. That’s the consensus of House of Representatives Steel Caucus members who addressed the issue during a “special order” on domestic steel problems. Speakers included Reps. Joseph M. Gaydos, D-Pa., Chairman; George M. O’Brien, R-Ill.; William J. Coyne, D-Pa.; John P. Murtha, ‘D-Pa.; Tom Bevill, D-Ala.; Henry J. Nowak, D-N.Y.; Adam Benjamin, D-Ind.; Douglas Applegate, D-Ohio; and Ralph Regula, R-Ohio. Charging serious effects on the economy, Gaydos said that in August, 25 percent of our domestic steel consumption came from foreign producers – about 2’/4 million tons. September imports were 64 percent higher than for that month in 1980. Imports from the European community were up 55 percent in August. From Canada they were up 41 percent. Japan’s dipped 2.7 percent. Gaydos called Kaiser Steel, which “this month quit production of steel and will eliminate 3,000 workers in Califomia,” a casualty of import problems. “It’s common these days to read of layoffs of 300 or 400 and short work weeks for others.” Gaydos estimated the number of American steelworkers out of work at 52,000, with 17,000 on short work weeks. Another dimension in the magnitued of the import problem was supplied by Nowak who declared that for the first nine months of this year, steel imports totaled 14,493,000 tons, an increase of 24.6 percent. He quoted the American Iron and Steel Institute as saying: “If present trends continue, the market penetration of imported steel will set a new record for 1981.” Regarding the Steel Caucus charge that U.S. trade laws are being violated, Regula said: “Foreign governments have taken various actions to help reduce production costs for their steel industries: below market loans, low cost raw material imports through subsidies for ore, coal,and oil; market-sharing arrangements; tax abatement, and quotas on imports.” Solutions proposed by congressmen included; – Retain and strengthen the “trigger price mechanism,” a plan set up under the Carter Administration in 1977 to help identify and stop “dumped steel imports.” Said O’Brien; “The TPM, however imperfect, does provide limited benefits for the industry by offering a method for insuring that imports represent fair competition in our domestic markets.” – President Reagan. whose administration was commended for achieving a three-year voluntary restraint in Japanese auto imports, was urged to give similar consideration to the steel industry. – Reagan also was asked to convene a “White 1-Iouse Summit” on steel by mid-December. – That divisions of the Department of Commerce and Internationai Trade Commissions bel maintained at sufliecient strength to handle investigations of com laints prepared by the Se etary of Commerce to event further import of d mped and subsidized pr ducts “and to proceed against those nations and inns who ignore and flauht our laws.” The speakers recognized steps the government is taking to address critical problems, including acceleratedcost-recovery, a faster write-off of capital expenditures, and the “stretch-ont” bill on extensions in pomplying with Clean Air Act deadlines. Gaydos served: “Steel holds the odem world together a supports it and movesi ” And there’s no doubt that strong steel industry is agsential to a healthy ;American economy. If our fair trade laws are being violated, the situation should be corrected. The laws should be enforced. It seems reasonable also for the appriprlate officials to implement the other steps urged by the Steel Caucus.