The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-12-04
BUYERS STRIKE
LAID TO EASTERN
STEEL COMPANIES
Trade Commission Files
Amended Answer to
Corporations Plea.

Placing almost the entire blame
as buyers strike" and the busi-
as a buyers strike" and the busi-
ness depression resulting there
from, upon the heads of the steel
land pig-iron concerns in the East,
the Federal Trade Commission yes
terday filed its amended answer. to
the petition of twenty-five steel
corporations. The corporations are
seeking a permanent injunction to
prevent being compelled to answer
questionnaires pertaining to the
steel industry at tie demand of
the commission.
The amended answer is a lengthy
document and contains vague hints
of an offer to compromise upon
the question of the right of the
commission TO examine the books of
these corporations when the latter
are brought into Equity court on
December S. next---the- commission
declaring that it will not expose
the trade secrets of these corpora
tions II allowed to make the eX-
animation.
The answer also contains a warn
ing that once the restraint of the
courts is removed. the commission
W III dNNtlHpN ~ N'AIDtl lhtSt COl
pOrations TO answer the question
naires. A warning given that the
commission will ask Congress to
enact drastic laws concerning sub
mission of regular reports from
these corporations.
Prices Not in Line.
Charging that the steel men are
responsible for the business depres-
sion. the commission states that
price adjustments are at present
very much out of line. and prices
much less than other commodities.
notably agricultural commodities to
the producer. that as result Of
the general feeling that the price
readjustment in the steel and iron
industry are all out of line. the
people generally have stopped buy
ing and that this has an effect upon
the whole Industrial trade struc-
ture. and that it is therefore. of
prime Importance that the truth
and facts relating thereto may be
ascertained and made public"
Another reason given for demand
ing answers to the Questionnaires
is that the acquisition of the com
plete Information and it's dissem-
ination will tend to prevent undue
huctuation and panicky markets
based on ignorance of the facts or
based on incomplete or self-inter-
ested information. published only,
whenever and insofar as it may
serve those self-interested who may
publish it,"
insists on Its Power.
The commission declares the Dis
trict of Columbia Supreme Court
has. in the issuance of tempor-
airy injunction, prevented il from
exercising its lawful duties-inas-
much as Congress delegated to ii
the power to investigate the steel
corporations.
The commission says that none
OF the steel corporations has been
the subject of a complaint to them.
IL takes issue with statements of
these corporations that hardly any
of their business is interstate. The
commission declares at least 65 per
cent of the business done by these
corporations is interstate or for
eign.
The official publication of the
steel industry, the Iron and Steel
Institute, is quoted in the COM
missions amended answer as max.
ing public some of the information
it desires without harm resulting
TO the business.
Expense Charge Denied.
Denial is made by the commits
sion that the corporations will be
put to unnecessary expense in an
swering the missionaries. No
out extraordinary system of book
keeping is needed. the answer in
Inmates. and the books of the cor
poratiOns, as they stand today, II
is asserted. are in good enough
shape to render the compiling of
these reports a matter of routine.
The court is reminded forcibly by
the commission that it is within the
power Of Congress to obtain these
reports in spite of judicial oDstruc-
tiop.
The books of these corporations.
which include almost all large East
ern concerns except the United
States Steel Corporation, will be
produced in court December 8 in
response to subpoenas issued last
Friday by Justice Bailey in Equity
Court. The commission will have
to make another fight to obtain
permission to examine them in or
der to cross-examine corporation
witnesses who are expected to tes-
tify that the orders for answer to