Omaha daily bee., 1921-04-30

.AgainstU.S.
Steel Filed
Trade Commission Charges
Unjust Competition i'll Inter-
state Commerce-ll Sub.
sidary Companies Named.
Thirty Days for Reply
By Tho Associated Press.

Washington. April "a formal
complaint against the United States
Steel corporation and II subsidiary
companies, alleging unfair compcti-
ton in interstate commerce, was is
sued today by the federal trade COM
mission.
Thus the commission finally has
decided that it has sufficient jurisdic-
ton to take up the long standing
complaints by various users of steel
products and others against the al
legged use by the corporation of the
device known as the Pittsburgh
plus prce."
1t was announced, however, that
the commission was divided, three
TO two, Chairman Thompson and
Commissioners Gaskill and Murdock
dissenting
The steel corporation and its sub
sidiaries. are given 80 days to make
formal answer to the complaint, after
which the case will proceed to trial
on its merits. s~IlY
Action Under Anti Trust Act.
The complaint was issued under
the Clayton antitrust act and the
law establishing the commission and
the commissions announcement said
the case was IAN outgrowth of con-
ditions complained of by more than
200 manufacturers of steel in the
Chicago, Duluth and Birmingham
districts, by legislatures of three
states, by several municipalities and
by Chambers of Commerce and
many business organizations
throughout the United States
The Pittsburgh plus price" is de-
scribed at length in the commissions
announcement, which says that under
it "all steel except rails, wherever
made and whether made in the
United States Steel corporation
plants or by its independents, is said
at the f. 0. b. Pittsburgh price, plus
an amount equivalent to the freight
to point of destination" and as an IL
lustration says that this means that
the Gary steel fabricator, who runs
his own truck to the Gary, Ind,
steel mill and purchases steel manu-
factured at that place. nut pay the
price charged in Pittsburgh, plus all
amount equaling the freight rate
from Pittsburgh to Gary"
Control Charged.
The complaint is not limited, how
ever, to the alleged use of this device,
1t charges specifically that the steel
corporation towns and controls the
ultimate iron ore supply in the United
States" and that because of 'its pow
er and influence" through the large
percentage of the steel manufactur-
ing business done by it and supported
by it. its consequent potential power
to embarrass or destroy its competi-
tors by unduly lowering its price
schedules is "tantamount to the nam
ing by the steel corporation of prices
that are to be charged by all the steel
manufacturers in the United States"
The charge also is made that the
steel corporation "for at least seven
years, has issued from time to time,
price quotations and schedules cover
ing rolled steel manufactured by its
subsidiaries and that these quotations
are adopted by all of the respondent
subsidiaries and their competitors
substantially as their quotations of
priceh and that this alleged practice
of steel manufacturers in fixing uni
form prices succeeded the custom
which formerly prevailed whereby
such manufacturers openly met at
intervals and agreed upon prices
which they were to charge and main
tain"