Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-04-30
FEDERAL TRADE
. BOARD ISSUES
co NJ PL AIN I
Commission Divides 3
to 2; Thirty Days
Allowed to Answer.
Use of pittsburgh
Plus Price Prac-
tice Causes Friction.

Washington, April ga
formal complaint against the
United States Steel corporation
and IL subsidiary companies,
alleging unfair competition in
interstate commerce was issued
Friday by the federal trade
commission.
Thus the commission finally has de-
cided that it has sufficient jurisdic-
ton to take up the long standing COM
plants by various users of steel pro-
ducts and others against the alleged
use by the corporation of the device
known as " the Pittsburgh plus price,"
Commission Divides.
1t was announced. however, that the
commission had divided, three to two,
Chairman Thompson and Commission
ers Gaskell and Murdock dissenting. \.
The steel corporation and it's sub.
EidiaEies- are given thirty days Or until
May 81, to make formal answer to the
complaint after which the case will
proceed to trial on it's merits. The
NcAAPA0AuS was 400uC0 UAAOCl tu6 S1dye
ton antitrust act and the law es-
tablishing the commission. The COM
missions announcement said the case
was IAN outgrowth of conditions COM
planned Of by more than 200 manu-
facturers Of steel in the Chicago,
Duluth and Birmingham districts and
by legislatures of three states, by
several municipalities, and by cham
bers of commerce and many business
organizations throughout the United
States"
"Pittsburgh Plus" Device.
The Pittsburgh plus price is de-
scribed at length in the commissions
it ''all steel. except rails, wherever
made and whether made in the United
States Steel corporation plants, or by
Independents, is sold at the {. o. b.
Pittsburgh price, plus an amount
equivalent to the freight to points of
destination" and as an illustration says
that this means that the Gary steel
fabricator who runs his own truck to
the Gary, Indiana, Steel mill and pur-
.chases steel manufactured at that
plapt, must pay the price charged in
Pittsburgh plus an amount equalling
the freight rate from Pittsburgh to
Gary"
The complaint is not limited how
ever, to the alleged use Of this device.
1t charges specifically that the steel
corporation towns and controls the
ultimate iron supply in the United
States" and that because of Its power
and influence" through the large per-
centage of the steel manufacturing
business done by it and supported by
it, its consequent potential power to
.embarass or destroy its competitors
by nnduly lowering it's price schedules
Is "tantamount to the naming by the
steel corporation of prices that are to
be charged by all the steel manufac-
turers in the United States"
Issues Price Quotations.
The charge is also made that the
steel corporation "for at least years
has issued from time to time price
quotations and schedules covering
rolled steel manufactured by it's SUBJ
salaries and that these quotations are
adopted by all of the respondents, sub
salaries and their competitors substan-
tally as their quotations of prices and
that this alleged practice of steel man
ufacturers in fixing uniform prices,
proceeded to the custom which form
6riy prevailed WnefeDy SUCH manufac
turers openly met at intervals and
agreed upon prices which they were
to charge and maintain"
Other specific charges included:
Tt the United States Steel cor
poration has complete control, super
vision and direction over the business
conducted by the subsidiaries named |
transportation materials used in the |
manufacture of iron and steel and |
products made therefrom in inter-
state commerce
Controls Iron Deposits.
That the United States Steel cor
poration through certain of its re-
spondent subsidiaries owns and con-
trolls over IS per cent of the total iron |
ore deposits in the Lake Superior dis |
trict, where is located the greater ,.art |
of the iron ore deposits in the United |
States.
That it owns and controls the great
er part of the iron ore deposits in
Alabama, where production is second
only in that of the Lake Superior
district.
That it owns and controls the major
number of railroads and lake trans
.portation systems which carry iron ore
from mi0es to manufacturing plants
Continued on Page Two)