The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-06-05
u. S. STEEL DENIES
UNFAIR COMPETITION
Case Now Will GO to Trial
on Merits Before Federal
Trade Commission.
REFTTE ALL CHARGES
REFUTE ALL CHARGES
Corporation Says Dismissal
Of Antitrust Suit in 1920
Upholds Contention.
PRICE FIXING EXPLAINED
Asserted That Subsidiaries Are
Following Practices That
Exist All Over World.

WASHINGTON, June a--The United
states steel Corporation and rs eleven
subsidiaries filed to-day with the Fed
erai Trade Commission al answer 90
the commissions complaint OF last
April. In which unfair competition IN
Interstate cornmerce was alleged. The
case now win 20 10 trial on It's merits
before the commission. which win de-
tcrmiDe whether an order should be
entered requiring the companies 70
desist from the practices complained
OF In the complaint The date Cor the
trial win be fixed later.
Answering each OF the twelve ALE
cations set out In tho original CON-
tlaint. the steel corporation and It's
subsidiaries call attention 20 the de-
cision of tho United States Supreme
Court on March I. 1890. disnissing tho
suit brought against the corporation
by the Government under the sher-
man antitrust act They aver that
the record Of the court shows:
THAT respondents ala not have a
monopoly OF the iron ore deposits either
IN the Lake Superior district or in the
State of Alabama or in the United States
at large.
+. THAT respondents did not own or
control the ultimate iron orc supply OF
the United States.
+ THAT respondents did not possess
monopoly OF the railroad and lake
transportation systems which carry ore
from the mines TO tho manufacturing
plants OF said subsidiaries OF competitors.
or through such systems as II ala con-
troll possess the power to monopolize
the raw materials from which steel ~
manufactured.
"That respondents did not own or
control a sufficient amount OF any brunch
OF steel manufacturing TO constitute a
age as to constitute n violation OF law
THAT respondents did not possess the
+ power to fix or control, and did not I'm
fact fix or control, the prices OF steel or
the products thereof.
e That respondents did not possess the
competitors.
THAT respondents did not control the
prices of steel products nor fix the
prices charged by their competitors.
That respondents did not either sim
gly or in combination constitute a mo-
nopoly or possess the power to monopo-
lie the steel trade In the United States
or elsewhere.
THAT competition in the manufacture
and sale OF steel and the products there
of in the United States was free and
unrestricted by any agreement, combi-
nation or understanding between the
manufacturers or sellers thereof"
Say Conditions Are Same.
The respondents aver further that
there has been no material change In
the constitution, holdings, powers or
! practices, or In the relative capacity or
output of the respondents or any of them
since the said adjudication and said
dismissal of the Governments petition"
In closing the steel companies sub |
nit that an order of the kind or effect
suggested in said complaint would be
unwarranted by any law of tho United
States: that such an order would con- |
stitute an interference with respondents
liberty of contract and would amount to |
the taking OF the respondents property |
without que process or law, contrary 70 /
the Fifth Amenment 10 the Constitutions
of the United States"
With. regard to the Pittsburgh base
price" the steel companies admitted that
the subsidiaries usually quote their
products on what is commonly called
the Pittsburgh basis, which represents
their prices on such products in Pitts
burgh. plus the freight TO the point OF
sale and delivery"
They assert that this is a common
practice of steel manufacturers. and
deny that the price is arbitrarily fixed
or arrived at" They say that lit varies
from time to time"
THE practice of quoting n base price,"
the answer says, us largely for the con- |
venience of customers and Is not con- /
fined to the steel industry, nor TO this |
country, but exists throughout the |
world"
The respondents admit that the United |
States Steel Corporation has a capital |
stock outstanding of the par value OF 1
ss6s.5S3,60 and of book value ex-
ceeding $500. ooo.0 900. and that the gross
sales of the corporation and its subsidi- |
aries aggregate more than $4,000, DOT. 900 |
annually.