Canada. Steel Profits Inquiry : The Steel Profits Inquiry was established under Order in Council P.C. 1177, 22 May 1974, under Part I of the Inquiries Act (R.S.C., 1970, c. 1-13) and on the recommendation of the Minister of Industry, Trade and Commerce. The Commission was mandated to inquire into and report concerning increases in the price of steel products made effective 15 May 1974, by the Steel Company of Canada and also concerning any increases that may be announced by any other producer of primary iron and steel products and to report whether such increases are exacting profit margins on the sale or distribution of such products that are greater than would customarily obtain on such sale or distribution; and further, to inquire into and report on whether producers of primary iron and steel products are: (i) exacting profit margins on the sale or distribution of such products that are greater than would customarily obtain on such sale or distribution; or (ii) withholding or causing to be withheld from sale or distribution an inventory of the products that is substantially in excess of that which they would normally hold or cause to be held with intention of realizing, at a later date, a profit margin on the sale or distribution of the articles that is greater than they would customarily obtain on such sale or distribution. The commissioner was Willard Zebedee Estey. The secretary was Arthur Simms.
Early in May 1974, the Steel Company of Canada Ltd. (Stelco) informed the Government of Canada that it planned to increase the price of about one-third of its finished steel products nearly 12 per cent, effective 15 May. Even though the government was defeated in Parliament, and an election was called for 8 July, the federal Minister of Industry, Trade and Commerce, Alastair Gillespie, met with the President of Stelco, Peter Gordon, on 13 May, and urged him to delay the date of the increases. Gordon refused and the increases went into force, as scheduled. Almost immediately, Algoma Steel Corporation Ltd. and Dominion Foundaries and Steel Ltd. (Dofasco) also raised their prices.
Because of the possible effect of the increases to the Canadian economy, the government appointed a public inquiry to investigate them and to determine whether profiteering was involved.
It appears that the reason for the establishment of the inquiry was largely political. It came at the start of a federal election campaign in which inflation was a major issue. (See RG 33/102, Vol. 4, files entitled "General Articles, Inquiry Hearings"; and "General Articles, Steel Industry").
Hearings of the commission were held in Sydney, Montreal, Toronto, Winnipeg, Regina and Vancouver, from 13 June to 18 September 1974. There were 95 exhibits filed with the commission. RG33-102 General Inventory
