Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-04-30
THE TIMES DLSPA TCHS RECORD OF FINANCIAL NEWS
CHARGE u. S. STEEL WITH
AN7ETRUSTACT VIOLATION
LCoMtLnueh Erom EMst TngeO

Continued r.
independents. is sold at the f. O. b.
Pittsburgh price. plus an amount
equivalent to the freight to point OF
destination" ana. as an Illustration.
says that this means that the Gary
steel fa~bricator who rune his own
truck TO the Gary. Ind. steel mill and
purchases steel manufactured AT that
plant. must pay the price charged in
Pittsburgh. plus an mount cqualinE
the freight rate from Pittsburgh to
Gary"
Complaint Not Limited.
The complaint is not limited. how
ever. to the alleged usr OF this de-
,icc. II 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 tho
last percentage OF the steel manAfac-
turing business done by it and sup
ported by il. ite consequent potential
power to cmbarrass or destroy It's
competitors by unduly 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 manufacturers In the United
states.
The charge also is made that the
steel corporation. for ut least seven
years. has issued. from time to time.
price quotations and schedules cover
ing rolled steel manufactured by its
subsidiaries. and that these quotations
are adopted by all of the respondent
subsidiaries and their competitors
substantially ~ their quotations of
prices. and that this alleged practice
Of steel manufacturers in fixing uni
form prices, succeeded the custom
which formerly prevailed. whereby
such manufacturers openly met at
intervals and agreed upon prices
which they were to charge and main
tain
Other Specific Charges.
Other specific charges included:
That 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 thcrcfrom in inter
| state commerce.
That tho United states Steel Cor
poratiOn. through certain OF its re-
S~pondcnt subsidiaries, owns and con-
trolls over 20 per cent of the total iron
ore deposits in the Lake Superior dis
trict, where is located the greater part
Of the iron ore deposits in The United
States.
That il owns and controls the
greater part of the iron ore deposits
in Alabama, where production is sec
ord only to that OF the Lake Superior
district.
That it owns and controls the major
numbcr OF railroads and lake trans
portaiion systems which carry iron ore
from mines to manufacturing plants
Of the respondent subsidiaries and
their competitors.
Owns md Control Qunrrlcs.
coal mines and limestone uuarrics
necessary In the manufacture OF
steel.
That. of the total production in the
United States OF the following Items
respondents manufacture and sell APP
proNimatcly 81 per cent of the crude
steel In the form of ingots. approx
matcly 10 per cent of bilicts. blooms
sheet and tin plate bars, rails. plates
and sheets, structural fabrics. bars
and the like. and approximately 60
per cent Of other steel products.
That the steel corporation. through
its subsidiaries. controls and utilities
vania, Ohio. New York. New Jersey.
Delaware. Maryland. Massachusetts,
Connecticut. .Alabama.. Kentucky.
West virginia. Illinois. Indiana, Min
ncsota, Wisconsin. Michigan. Kansas,
California and Washington.
The complaint also sets out that
the steel corporation has capital
stock outstanding of the par value of
SS2S. $50. 600. with n book value cN-
cceding 81 400, 00C, geo and that It has.
through it's respondent subsidiaries,
gross assets a~Sgregating considerably
more than $1,000. 600. 900. II is claimed
that the steel corporation does nn an
nual business amounting approx
imatcly to 81, 800 0O, 900.
Takes Up Plus-FrIcc In Detail.
Taking up the pittsburgh plus
price" in detail. the complaint says
that this price is that which Pitts
lurgh manufacturers must Pay res
pondcnts for rolled steel ut Pitts
hurEh and that purchasers in other
cities. except Birmingham. Ala. must
Lay this price. piIt the freight rate
TO the city OF manLS cturc from Pitts
burSh. irrespective OF where the steel
is nnufacturcd.
Tn" price at Birmingham Ala. the
complaint says, is 81 4 ton more than
tho Pittsburgh price. and that this is
arbitrarily arrived at, nOtwithstand-
ing that steel liz manufactured at
Birmingham at much less cost than
at Pittsburgh.
1t is alleged in the complaint that
use OF the Pittsburgh pluS-pricc en-
ahlcs Pittsburgh steel manufacturers
to secure substantially 30 per cent of
the steel business in the United states;
that. IN order to retain such business,
il rctardS. as much as possible. the
steel manufacturing growth OF other
sections OF the country: that the price
enables the steel manufactures TO
! maintain substantially uniform prices.
cL~~p~~ q. P~~A~