The New York herald., 1921-05-01
STEEL CORPORATION
NOT A DEFENDANT.
Trade Commission to Deter
mine Justice of Pittsburgh
Base Method, Says Gary.
NOT OPPOSED TO INQUIRY
System Established Long Be-
fore Great Concern Was
Formed, He Explains.

The proceedings begun by the Federal
Trade Commission to determine whether
restraint of trade exists under the
present method Of basing all steel prices
T. Q. b. Pittsburgh instead OF from the
mill from which 1t Is actually shipped
are not actually directed against the
United States Steel Corporation, which
is named in the complaint, or any other
manufacturing concern, but to deter
mile the question OF whether the Pitts
burgh base method should be dscon-
tinued in the future. This was made
plain yesterday by Judge e. H. Gary,
chairman of the board of directors of
the United States Steel Corporation.
1T is mistake" Judge Gary said,
TO suppose that the proceedings before
the Federal Trade Commission, referred
to In the morning press, are directed
against the United States Steel Cor
porauon or any manufacturing concern.
The basing point means that selling
prices are determined t. 0. b. Pittsburgh
and that delivery prices are ascertained
by adding freight from Pittsburgh to
the place Of delivery.
pittsburgh, being the largest prin-
cipdl steel manufacturing centre, many
years ago. and long before the United
States Steel Corporation was formed,
was by common consent designated by
the general trade as a basing point, and
this custom has prevailed up to the
present time. This custom and practice
apply to many If not all other lines of
industry. 1t has secured a stability in
business which has been of substantial
benefit to the general trade, including
both sellers and buyers. and SO far as
! know until comparatively recently
has been entirely satisfactory to all
concerned.
During the last few years complaint
has been made by residents of localities
other than Pittsburgh that the custom
referred to resulted in building up Pitts
burgh and vicinity to the prejudice of
other places
F1Eht Started In Chicago.
"E4nally, about two years ago. petit
ton was filed in behalf OF purchasers of
sem1-flnished steel by certain manufac-
turers In and about Chicago and other
places before the Federal Trade Com
mission, asking the commission to in
yestigate the subject matter and to COM
pei ut6 uAiIfS Ol DaSlC Selling points Ill
localities other than Pittsburgh. The
leading counsel for the petitioners and
the chairman of the Steel Corporation
appeared before the Federal Trade Com
mission and the question was Immediate
ly raised by the chairman OF the COM
mission as to whether or not the COM
mission had Jurisdiction over the subject
matter. The chairman of the corpora
ton stated that as 1t had manufacturing
plants not only in Pittsburgh but various
other places throughout the country. in
Guiding Chicago. the corporation was not
interested to the same extent as others
whose plants were confined to Pitts
burgh. and suggested that before the
commission assume Jurisdiction all other
manufacturers should be notified and
given an opportunity to be heard. This
plan was adopted. and a full repre-
sentation OF the whole steel industry has
been heard in discussion.
"A majority OF the members of the
commission after long consideration Of
the question involved decided that the
Federal Trade Commission would not
assume jurisdiction Since that time the
personnel of the commission has been
changed and majority now decided
that the commission will take jurisdic-
ton and hear the whole case on the
the basing points for the sale of steel
shall be confined to Pittsburgh.
Welcomes the InvestiEat tion.
Presumably a full investigation OF
the facts will be made. Perhaps there
is no objection to the action of the
commission on the part of steel manu-
Gacturers generally, although ] am not
qualified to express an opinion on this
subject.
Speaking for myself alone. will
be glad to have the whole matter fully
and carefully considered and il possible
n judicial and final decision reached.
The question is far reaching and in
wolves much more than the pecuniary in
terests of the manufacturer. sellers and
buyers of steel"
What. II anything, have you TO say"
Judge Gary was asked, TO the allega-
tlons In the petition filed before the
Federal Trade Commission"
'The Federal Trade Commission has