1

UNITED STATES OF AMERICA

FEDERAL TRADE COMMISSION

WASHINGTON, D.C. 20580

Office of the Secretary

February 27, 2012

Charles C. Murphy

Vaughan & Murphy

260 Peachtree Street, N.W. Suite 1600

Atlanta, Georgia 30303

Re: In the Matter of Sigma Corporation, File No. 101 0080, Docket No. C-4347

Dear Mr. Murphy:

Thank you for your comments regarding the proposed consent order accepted by the

Federal Trade Commission for public comment in the above-captioned matter. Your letter,

submitted on behalf of Electrosteel USA, LLC (“EUSA”), proposes that the Commission take

additional remedial measures to restore competition in the market for ductile iron pipe fittings

(“DIPF”). EUSA is a competitor or respondent Sigma Corporation (“Sigma”).

The Commission’s complaint in this matter alleges, inter alia, that the three largest U.S.

sellers of DIPF -- Sigma, Star Pipe Products (“Star”), and McWane, Inc. (“McWane”) --

exchanged information documenting their monthly sales of DIPF; that this information exchange

was in furtherance of an illegal conspiracy among the three manufacturers to fix DIPF prices;

and that this information exchange is independently illegal because it facilitated coordinated

pricing of DIPF.

You propose that the Commission’s Order require the public disclosure of the

information that was improperly shared among Sigma, Star, and McWane, including data

pertaining to annual sales, geographic demand, and the scope and size of rebates offered to

distributors. You suggest that disclosure of this information would better equip EUSA to

compete in the future with the three parties to the information exchange.

The information exchange challenged in the Commission’s complaint collected and

disseminated only monthly sales of DIPF in the United States, and operated only during the

latter half of 2008. During 2008, this information could be used by the three manufacturers to

monitor each others’ adherence to a price fixing scheme. It is not apparent to the Commission

(from your letter or otherwise) that the disclosure of this information today, as you propose,

would enhance competition.
2

Your comment also suggests that the Commission issue a public notice of these

proceedings, in order that purchasers of DIPF will be alerted to the potential need to “reexamine

their material specifications.” The Complaints against Sigma, Star and McWane are a matter of

public record, as is this letter. At the time of this writing, the Commission understands that no

fewer than five private plaintiffs have filed suit in federal District Court seeking damages from

McWane, Star and Sigma. Materials relating to the Commission’s ongoing administrative

litigation in In the Matter of McWane, Inc., and Star Pipe Products, Ltd., Docket No. 9351, are

available at http://www.ftc.gov/os/adjpro/d9351/index.shtm.

The Commission has determined that the public interest would best be served by issuing

the Decision and Order in final form without the modifications you suggest. A copy of the final

Decision and Order is enclosed for your information. Relevant materials also are available from

the Commission’s website at http://www.ftc.gov.

It helps the Commission’s analysis to hear from a variety of sources in its work on

antitrust and consumer protection issues, and we appreciate your interest in this matter.

By direction of the Commission.

Donald S. Clark

Secretary