The New York herald., 1921-04-30
Pittsburgh Plus System
Works Hardships, Asserts
200 Fabricators in Diff
ferent Sections.
METHODS CALLED UNFAIR
145 Plants in 10 States and
Annual Business Of 81, ,500,-
100000 Give Power to Set
Steel Prices, 1t Is Said.

spec,oi Despatch 10 THE New YORK HERALD
New York Herald Bureau.
Washington, ID. c., April 20.
The Federal Trade Commission, by
a vote of to 9, has issued a formal
complaint against the United States
Steel Corporation and eleven of it's
subsidiaries, charging that the cor
poration maintains an illegal monopoly
by controlling and fixing prices for all
steel except rails throughout the Uni
alleged to be in violation both Of the
Federal Trade Commission act deal
ing with Interstate commerce and of
the Clayton act defining unlawful trade
restraints and monopolies.
Associated with the United States
Steel Corporation as respondents are
the American Bridge Company. Ameri-
can Sheet and Tin Plate Company,
Carnegie Steel Company, National Tube
Company, American Steel and Wire
Company, Illinois Steel Company. Min
nesota Steel Company, Clarion Steel
Company, Union Steel Company. Lorain
Steel Company and Tennessee Coal.
Iron and Railroad Company.
The complaint arises out of an ap-
plication by the Western Association
of Rolled Steel Consumers and other
users of steel products, who set forth
conditions complained of by more than
2,700 fabricators of steel in the Chi
cago, Duluth and Birmingham dis
tricts, supplemented by grievances al
legged by the Legislatures Of Illinois,
Minnesota and Alabama, ~ several
municipalities and by chambers of
commerce and many other business
organizations throughout the country.
Thirty Days to Answer.
The respondents have thirty days in
which to make formal answer. Issue
having been Joined. the case will pro-
ceed to trial on Its merits. The COM
plaint filed by the commission means
that priIna facie case justifying trial
has been made out in other words, 1t
corresponds TO an Indictment by q
Grand Jury in a regular judicial pro-
ceeding and in no way establishes an
actual finding Of fact.
The charges preferred by the major
ity of the commission rest upon the
trade practices known as the Pitts
burgh base pittsburgh plus and
Birmingham prices. Almost two years
ago. in July, 1919. Judge Elbert H.
Gary, chairman OF the board OF the
United States Steel Corporation. at
preliminary hearing dealing with the
same matters, urged the commission
strongly to go into these matters, assert
Ing that he believed II had jurisdiction
and that the questions involved we're
among the most important matters with
in the scope of the Federal Trade Com
mission. He said then that a decision on
the pittsburgh plus price system would
materially affect the entire Industrial
system of the country. as a great ma
jority of the basic Industries are oper-
ated upon the same or some similar sys-
tenn In regard to prices.
After the Gary conference the commits
sion conducted an investigation and held
hearings In December. 1919. The fol-
lowing summer the proceedings were dis
missed. But in September last motions
were heard on complaint of the Western
Association Of Rolled Steel Consumers
for a rehearing, and the motions were
granted. Arguments were heard for
several days In November, and the re-
spondents replied in December. since
when the case has been under advise
ment.
The announcement to-day states that
Chairman Huston Thompson and Com
missloners John Garland Pollard and
John +. Nugent voted to Issue the formal
complaint. Commissioners Nelson B.
Gaskill and Victor Murdock dissented.
Allegations I'm Complaint.
The complaint first alleges that the
steel Corporation, with an outstanding
capital stock issue OF sS6s.5s3.6 500. hav-
ing n book value exceeding 1880. .000.-
o0o." has gross assets. through its SUBJ
salaries, considerably In excess OF
$4,000. 100000 and does an annual busi-
ness In excess OF $500. 100000 The
corporation and its subsidiaries manu-
facture and sell from As to so per cent.
II is charged. of all the crude steel In
ingots, all semi-finished steel In billets.
blooms. slabs, sheet and tin plate bars.
all finished rolled iron and steel prod
ucts In the form OF rails. plates and
sheets, structural fabrics. barS iron
rods, skelp. hoops. bands. cotton ties and
all other steel products.
The corporation and It's subsidiaries
control and utilize, II is asserted. las
plants for the manufacture of these
products. located in nineteen States
throughout the Union.
During the last seven years. II In
charged, the corporation has issued from
time TO time price quotations and sched-
ules covering rolled steel manufactured