The Birmingham age-herald., 1920-11-20
By HUGH ". ROBERTS

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 Washington, November 1s.-(Special)- The south and west have presented what is regarded as an unusually strong case
 against PittsbUrg before the federal trade commission in an effort to obtain the elimination of what is known as the Pittsburg differential in the price of steel. Pittsburg, as controller of the steel ! market, requires steel producers in Bir-
 mingham and Chicago to add to the price of their product sum represented by the railroad rate from Pittsburg to the point of consumption. By the operation of this differential, Pittsburg can sell steel to San Francisco as cheaply as Chicago, or to Mobile. or Chattanooga, or Macon, as cheaply as Birmingham
 The case, in consequence affects every steel consuming center of the Limited States. The Pittsburg defense of what appears on the surface as its untenable position is based on tho fact that no other manufacturing source of steel can entirely supply it's immediate territory, and that as Pittsburg in all cases is
 
 excess of local production, Pittsburg should be protected as far as price is concerned.
 The case of the south was presented by Elliott Cheatham of Atlanta, attorney for the Southern Association of Rolled secretary of the Birmingham Civic asso- cia ton. Relative to the contention of Pittsburg, by means of which it seeks to l justify its position, Mir. Cheatham of /, fered evidence to prove that the Pitts burg manipulation of the market had a which local facilities are inadequate en- tirely to serve it's immediate territory. He contended that Pittsburg prevented the fullest development of the steel in- dustry in Birmingham, Chicago and other points, and that its action was in viola legislation. He made the point, too, that the Pittsburg differentia1 was indefensi- ble, inasmuch as it's burden was borne in it's. entirety by the ultimate consumer. One of the strongest points in the argu- | ment of Mfr. Cheatham and MT. Harold ! was the citation of minutes of a meeting I of the officials of the Tennessee Coal
 and Iron company, then, as now, sub- sidiary of the United States Steel corpor- ation. held in Birmingham in 1908. At this meeting, Judge Ebert H. Gary, chairman of the board of directors of the l United States Steel corporation, declared {! that there was much in the contention of Birmingham and Chicago that they !, should be made basing points for the fixing of the price of steel a parity with Pittsburg and that he advised that such be done as future policy. MT. ] Cheatham stressed the point that since
 the meeting F years had elapsed and that in his opinion the time had come for Jcdge Cary to make good. his promise. MT. Burr. at this time an official of the Tennessee company, the minutes re- vealed, admitted that it was folly to ex- 1 pect the expansion of southern industry until such time as the Pittsburs differ
 ential was removed.
 ! The evidence before the commission !, tended to show that the Pittsburg diff l ferential retarded southern industry and southern consumption. Tables showing the capacity of various southern mills
 producers of steel and consumers oi 1 steel, were admitted. These were accom- panied 5y implications that because oi
 the attitude of Pittsburg they were all sspra ctiaal ctanGstill v l At later date this month, the United
 States Steel corporation, through its general counsel, R, V. 1dndabury, will
 make response to the Statement of the l plaintiffs. It is generally thought that
 irrespective of the decision of the com mission, the case will so to the supreme court. There is contrary View, how ever, to the effect that if the United States sSteel corporation is found by sthe
 commission to be at fault. it will votaR- rtariiy agree that Birmingham and Chi. i cago should be given territorial advan- tage in fixing the price of steel.
 This would. of course. have a direct
 bearing on every consumer in the United
 States close enough to profit from Bir- mingham or Chicago markets.
 Washington. November l9.-r(speciai.) } = The attempt of the 5oo.oDo .Amcricar reds, acting under instructiou~ of ths ! Russian dictator. L.enin6. to gain contro
 Of the American Federation of Labor and tlus of American industry. all of which has been featured in this correspondence
 is borne out today by James g. NcCar. ! thy, formerly of the secret service of ths l United States railroad admlnsstratio. who makes an open statement to the public In part. it follows: s .sE-rom June b, 1918. to March l. 1s2o. was employed IS inspector in the proper- 1 tv protection. secret service and police l sections of the railroad administration visited ali the large cities of the United l States for the purpose of investigating I red activities on American railroads md can testify as to the great inroads | his criminal element is making on cr- ssa HIzel labor
 The country. from one end to the oth-