Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-04-30
PITTSBURGH
PLUS PRICE"
TOT Be PR0BED
Trade Commission Files
Complaint Against u. S.
Steel Corporation y
Washington, April 2s.eA

Washington, April PA formal
complaint against the United States
Steel corporation and eleven subsidiar nv
companies, alleging unfair competi-
ton in Interstate commerce, was issued
todal by the federal trade commits
sion. Thus the commission has final
ly decided that it has sufficient juris;-
diction to take up the long standing
complaints by various users of steel
by the corporation OF the device
known as the Pittsburgh plus price"
1t was announced. however, that
tho commission had divided, two to
three. Chairman Thompson and Com
missioners Holland and Nugent voting
for issuance OF the complaint, and
Commissioners Gaskcll and Murdoch
dissenting.
To Answer Within 80 Days.
The steel corporation and its shb-
salaries arc given 80 days, or until
May 81, to make formal answer Ia
the complaint, after which the case
Will proceed to trial on it's merits. The
complaint was issued under the Clay
ton antitrust act n the law estah-
fishing the commission. Tho commits
slOn'S announcement said the case was
IAN outgrowth of conditions com
planned of by more than 200 manu-
facturers OF steel in the Chicago, Du-
luth and Birmingham districts and by
legislatures Of three states. by several
municipalities, and by Chambers OF
Commerce M many business organi-
cations Throughout the United States
The Pittsburgh plus price is de-
scribcd at length in the commissions
announcement, which says that under
1t AL steel except rails, wherever
made and whether made in the Unit
ed States steel Corporation plants or
by the independents, is sold at the
+. O.. b.. Pittsburgh price, plus an
equivalent to the freight to
point of destination and as an illus
tration says that this means that the
Gary steel fabricatOr who runs his
and purchases steel manufactured at
that plant, must pay the price charged
in Pittsburgh plus an amount equal
Ing the freight rate from Pittsburgh
to Gary
Make Specific Charges.
The complaint is not limited, how
ever, to the alleged use of this de-
wee. 1t charges specifically thai the
steel. corporation owns and control.
the ultimate iron orc supply in the
United States,'-and hat because "of
its power and influence" through the
large percentage of the steel manu-
featuring business done by it and sup
ported by it, it's consequent potential
owe TO embarrass or destroy its
competitors by unduly lowering its
pee schedules is '..tantamount to the
nabains by the steel corporation OF
prices that arc to be charged by al
the steel manufacturers in the United
II n Nc ~ E#-aH : r -. - -E--t - Hh
Tho charge is also made that the
steel corporation ''fer at least sever
years has issued from time to time
price quotations and schedules cover.
ing rolled steel manufactured by sub,
salaries, and that these quotations
arc adopted by all Of the respondents
su hsidiarics and their. councillors
substantially as their quotations vi
prices and h a this alleged practice
of steel manufacturers in fixing uni.
form prices succeeds the custom which
formerly prevailed whereby such man.
n~fa cturcrs openly mo at intervals
and agreed upon prices which the,
were to charge and maintain
Alleged Control Over Subsidiaries.
Other specific charges included:
That the United States Steel Corpor-
alton has complete control, supervision
and direction over the business con
Quoted by the subsidiaries named
transportation materials used in the
manufacture Of iron and steel. and
products made thcrefrom in interstate
commerce.
That the United States Steel Corpor-
alton through certain Of its respond
ent subsidiaries WINS and controls
over IS per cent. of the total iron ore