New-York tribune., 1918-11-28
Independent Steel
Makers Plan Great
Exporting Combine
Twenty-eight Companies
Arranging for Co-opera-
ton in Foreign Sales

Inc leading independent steel COM
panles of the United States are arrang-
ing to combine for foreign selling. A
committee of steel executives has been
CHOSEN to formulate precise plans for
the formation of an export association
to represent twenty-eight companies.
whose aggregate ingot production
reaches 2O,0O0,00O tons a year.
The proposed consolidation will be
through corporation with a New York
charter and a suggested initial capi-
talization of s1o,oOo,Ooo, to which pro-
ducers will subscribe. The name Of
the association may be "thc Indepen-
dent Steel Products Corporation" A
substantial decrease in the quantity of
steel exported through merchant firms
and brokers is expected to be one of
the first results of the amalgamation.
1T is understood that the cooperating
companies intended to devote about 10
per cent OF their output to export trade.
without regard to fluctuations in do
mestlc demand. The tentative plans
contemplate systematic attempt to
Dulld up permanent and constantly
May Build Ships
Besides enabling the independents to
make price agreements in foreign mar. ~
kets and to have a single selling agency.
as allowed under the terms Of the
Webb-Pomerene act passed last winter
py Congress, it is planned to have the
ASSOCIATION build warehouses through
out the world, and to build carving
ships it the Webb law allows.
The following men have been charged
with the task of working out the de-
tails: A. c. Dinkey, president of the
Midvale Steel and Ordnance Company;
=. Il. Grace, president of the Bethle-
hem Steel Corporation; E. A. S. Clarke,
president of the Lackawanna Steel
company; John A. Topping, president
OF the Republic Iron and Steel Com
pany; r. u. Block, vice-presdent of
the Inland Steel Company, and ]. A.
Campbell, president of the Youngstown
Sheet and Iron Tube Company. The
personnel of this committee was Sc
lected at meeting Of the representa-
tives of twenty-eight Independent steel
companies at the Bankers Club.
The United States Steel Corporation
is not included in the projected merger
for selling overseas, because it has its
own foreign organization in the form
of the United States Steel Products
Company.
/ 81 wish that great success" said E.
Fl. Gary, when the steel combination
was mentioned to him. Mr. Gary said
that it had no connection whatever
with the United States Steel Corpora
ton.
The unifying tendency, which is now
ole
tlon of a similar organization in the
copper field. These two movements
are the two most important that have
yet started under the Webb law, which
nulllties the substance of the antitrust
laws, SO far as foreign trade is con-
cerned. The new act frees American
corporations from many of the legal
restraints which handicapped them in
the competition with sellers of the
other leading commercial nations, and,
moreover, enables them to present
unified front to the cooperative buying
agencies which are being established in
Great Britain, France, Italy and else
where throughout the world.
Want Interpretation of Law
The work of organization is expected
to go on rapidly now to enable the
united producers to enter the world
markets as soon as possible. The legal
aspects for the creation of the new
selling instruments are important, and,
inasmuch as the law has not yet been
interpreted in court or by the Federal
Trade Commission, which sponsored it,
much pioneering remains to be done.
1t is not absolutely clear just how
much the law allows, and it is likely
that the steel men will seek a detini-
ton Of certain clauses and possibly ask
for a broadening Of powers if neces-
sary to enable them to build and op-
crate their own ships.
The announcement of the proposed
amalgamaticn for foreign selling-and
it is in no way allowed by law to affect
the domestic situation-came while
steel men were discussing the effect
of the forthcoming ending of the al
location of steel by the War Industries
Board on November 80. The freeing of
the market. steel men pointed out,
will bring in many buyers who were
holding off until the restrictions
would be lifted. In some quarters.
the hope was expressed that price fix
ing for steel would be discontinued on
January 1, when the present price ex-
pires.
In commenting on the situation.
"The Iron Age" says: "The Steel