Evening star., 1921-04-30
STEEL COMPANIES
LISTED AS UNFAIR
U. S. Corporation and II
Subsidiary Concerns in
Trade Commission CHARGE.

Trade Commission Charge.
Alleging unfair competition in in
terstate commerce. the Federal Trade
Commission yesterday issued for
NAL complaint against the United
States Steel Corporation and eleven
subsidiary companies. The commits
sion has decided that it has suffi-
cient jurisdiction to take up the long
standing complaints by various users
of steel products and others against
the alleged use by the corporation of
the device known as the "Pittsburgh
plus price" Announcement was made.
however. that the commission had
divided three to two, Chairman
Thompson and Commissioners Pollard
and Nugent voting for issuance of
the complaint and Commissioners
Caskill and Murdoch dissenting.
Thirty Days to Make Reply.
Thirty days, or until May 81. are
given to the steel corporation and
it's subsidiaries to make formal an
swer TO the complaint. after which the
case will be tried on its merits. The
complaint was issued under the Clay
ton antitrust act and the law estab-
fishing the commission. The COM
growth of conditions complained of
by more than 200 manufacturers of
steel in the Chicago. Duluth . and
Birmingham districts, by legislatures
of three states. by several munich
palities and by chambers of commerce
and many business organizations
throughout the United States.
Plan Set Forth at Length.
The Pittsburgh plus price is de-
Ccribed at length in the comrNiSSion-
ers' announcement, which says that
under it "all steel, except rails, Wher-
ever made. and whether made in
United States Steel Corporation plants
or by it's independents, is sold at the
I. o. 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 plant must pay the
price charged in Pittsburgh plus an
amount equaling the freight rate
from Pittsburgh to Gary"
Not Limited to One Device.
The complaint is not limited. how
ever, to the alleged use of this de-
vice. 1t charges specifically that the
Steel Corporation owns and controls
the ultimate iron ore supply in the
United States" and that because of
"its power and influence through the
last percentage of the steel manu-
featuring. business done by 1t and
supported by it, its consequent po-
tential power to embarrass or de-
stroy it's competitors by unduly low
ering it's price schedules is tanta-
mount to the naming by the steel
corporation Of prices that are to be
charged by all the steel manufac-
turers in the United States"
Other specific charges included:
That the United States Steel Cor
poration has complete control, su-
pervision and direction over the busi-
ness conducted by the subsidiaries
in the manufacture of iron and steel
and products made therefrom in in
terstate commerce.
Controls Iron Ore.
That the United States Steel Cor
poration, through certain of it's re-
spondent subsidiaries, owns and con-
trolls over IS per cent of the total iron
district. where is located the greater
part of the iron ore deposits in the
United States.
That it owns and controls the great
Alabama, where production is second
only to that of the Lake Superior
district.
That it owns and controls the ma
1jor number of railroads and lake
transportation systems which carry
ing plants of the respondent subsid- :
iaries and their competitors.
That 1t likewise owns and controls
coal mines and limestone quarries
necessary in the manufacture of
steel.
Utilixes 145 Plants.
That of the total production in the
limited States of the following
respondents manufacture and sell
approximately Al per cent of the
crude steel in the form of ingots: ap-
proximately As per cent of billets.
rails. plates and sheets, structural
fabrics, bars and the like. and ap-
proximately 60 per cent of other steel
products.
That the steel corporation. through
it's subsidiaries controls and utilizes
vania. Ohio, New York. New Jersey,
Delaware, Maryland, Massachusetts,
Connecticut, Alabama, Kentucky
West Virginia, Illinois. Indiana. Min
nesota, Wisconsin, Michigan, Kansas
California and Washington.
Billion and Half Annually.
The complaint also sets out that
the steel corporation has capital stock
outstanding of the par value of sS6S.
5S3,600 with book value exceeding
one and one half billion dollars, and
that it has through its respondent
subsidiaries gross assets aggregating
considerably more than two billion
dollars. 1t is claimed that the steel
corporation does an annual business
amounting approximately to one and
one half billion dollars.
The subsidiaries of the steel cor
poration named in the complaint are
the American Bridge Company. the
American Sheet and Tin Plate Com
pany, the Carnegie Steel Company
the National Tube Company and the
American Steel and Wire Company
New Jersey Corporations; the Illinois
Steel Corporation. the Minnesota SteeI
Company. the Tennessee Coal and
Iron Company and the Clarion Stee
Company, the Union Steel Company
and the Lorain Steel Company, Penn
syivania corporations.
Change in Schedule r., F. 4 p. n. n