New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-04-30
Price Fixing and Supply
Monopoly Are Alleged,
Naming Ill Subsidiary
Companies in Complaint
Pittsburgh Plus
Cost Plan Target
Commission Ayers 147
Plants in 10 States Are
Under Single Control


,,a;nt against the United States Steel
corno-ation and eleven subsidiaries,
,,leging unfair competition in inter-
state commerce, was made to-day by
,bs Federal Trade Commission. Thus
.he commission finally has decided that
/ h has jurisdiction to take up long
| sanding protests against the alleged
use by the corporation of the device
Known as .the Pittsburgh plus price"
It was announced, however, that the
.onrission had divided three to two,
Chairman Thomson and Commissioners
Pollard and Nugent voting for issu-
srce of the complaint, and Commits
! aoners Caskill and Murdock< dissent
ling.
\ The Steel Corporation and its sub
tdiaries are given until May 81 to
nake formal answer to the complaint.
! The case will then proceed to. trial on
Is merits.
The commissions announcement said
h Eae case was IAN outgrowth of condi-
/ tons complained of by more than 2,7o0
manufacturers of steel in the Chi
tagc, Duluth and Birmingham dis
.ficts, by legislatures of three states.
By several municipalities and by cham
hers OF commerce and many business
organizations throughout the United
States"
The announcement says that under
The Pittsburgh plus price call steel,
except rails. wherever made, and
vhether made in the United States
See! Corporation plants or by the in
/ dependents, is sold at the f. o. b. Pitts
burgh price, plus an amount equivalent
to the freight to point of destination. y
The report says that this "means
/ that the Gary steel fabricator who
runs his own truck to the Gary, In
diana. steel mill and purchases steel
\ manufactured at that plant must pay
{ amount equaling the freight rate from
j Pittsburgh to Gary"
The complaint also charges that the
Steel Corporation Gowns and controls
the ultimate iron ore supply in the
1 United States" and that because of
! its power and influence" its potential
4 sossr to embarrass or destroy it's COM
b EDITORS by unduly lowering its price
a xhedules is "tantamount to the nam
R ing by the Steel Corporation Of prices
that are to he charged by all the steel
nanufacturers in the United States"
d II is charged that the Steel Cor
d poration issues price quotations and
4 schedules covering rolled steel and
5 hat these quotations are adopted by
n al Of the respondent subsidiaries and
q their competitors, and that this alleged
a practice in fixing uniform prices sue
E teeded the custom which formerly pre-
\ vailed whereby such manufacturers
E openly met at intervals and agreed
a upon prices which they were to charge
Il and maintain"
d Controls All Subsidiaries
1 Other specific charges included:
That the Steel Corporation has COM
4 pete control over the business con-
A Quoted by the subsidiaries, transporta-
ton of materials used in the manufac-
ture Of iron and steel and products
n made therefrom.
That the Steel Corporation owns and
controls more than rs per cent of the
total iron ore deposits in the Lake
4 superior district, where is located the
Z greater part of the iron ore deposits
+ IN the United States.
That it owns and controls the greater
part of the iron ore deposits in Ala
T oama, where production is second only
T % mat OF the Lake Superior district.
Fhat it owns and controls the maj jor
humber of railroads and lake trans
s ?oftatlon systems which carry iron ore
rom mines to manufacturing plants
the respondent subsidiaries and
'nelr competitors.
mat 1t owns and controls coal mines
& saa limestone Quarries necessary in the
manufacture OF steel.
E ~ mat OF the total production in the
Z united States of the following items
4 .sspondents manufacture and sell AZ
E ~ sen, cent OF the crude steel, 45 per cent
h u oillets, blooms, sheet and tin plate
n ssa's; rails, plates and sheets, struc-
,s.ai fabrics, bars and the like, and so
+ ssr cent of other products.
mat the Steel Coropation controls
& sau ulillzes l45 plants, principally IN
# il.rnnsyivania, Ohio, New York, New
r ,s!lsey, Delaware, Maryland, Massachu-
e w., connecticut, Alabama, Kentucky,
A"ss. ,. Virginia, Illinois, Indiana, Min
rr.sso9Hsa, Wisconsin. Michigan, Kansas,
S.TTaornia Ta'!nia and Washington.
iaklng up the "Pittsburgh plus
h ss.s s,sse, in detail. the complaint says
MAJ, sss This price is that which Pitts
sk9 manufacturers must pay re-
'r'A0ents for rolled steel at Pitts
j CONTINUED on pass four)