The New York herald., 1921-04-30
Co~tinssed from First Paos.

by itself and it's subsidiaries. which quo
tations have been adopted by all these
subsidiaries and their competitors. This
alleged practice OF fixing Uniform prices.
II is charged, succeeded the former trade
and agreed upon prices which they would
charge and maintain.
The power and influence OF the
Steel Corporation and It's potential
power to embarrass and deRt 'oy It's
competitors by unduly lowering it's
prices" enable II to all intents and pur-
poses, IL is charged. TO name the prices
for all steel products that shall be
charged by all manufacturers through
out the United States.
What is called the steel nianufac-
turers' price practice" makes IL impos-
sible. the complaint alleges. for pur-
product from any manufacturers at
other than the prices quoted by the
Steel Corporation.
The "PittsburHA Plus" system.
Under the Pittsburgh base" system
all purchasers in Pittsburgh mist pay
the price quoted I. o. b. Pittsburgh for
rolled steel according to the CORPORA
tion's quotations. The pittsburgh plus
price is what all purchasers outside OF
Pittsburgh, no matter where located. ex-
cept Birmingham. Ala. mrat pay for all
rolled steel except rails. This price Is
the Pittsburgh base plus whatever the
freight rate would be for the shipping
of the product from Pittsburgr TO the
point of delivery. even though the prod
uct Is not purchased or manufactured
at or shipped from Pittsburgh.
For in Stanca UifE fhp piftahurcl, n 40
price at $50 a ton for rolled steel. the
present price at Duluth for the same
product under the price practice" is
$500. the difference being the addition
of an imaginary freight rate amounting
to $500. to make the Pittsburgh plus
price. This is the actual present freight
rate between Pittsburg and Duluth. but,
the commission points out. il constitutes
an unfair practice, becaasc the steel
purchased and delivered at E,luth is
actually manufactured there and not in
Pittsburgh.
The cost of manufacture of the prod
uct also IS intrinsically less In Duluth
than in Pittsburgh because OF condi-
tions. Nevertheless the uniforii price
practice applies and Duluth purcha sers
are Disseminated against 20 the extent
Of this arbitrary freight rate increase
When the Federal Trade Commission
recently granted an increase in freight
rates this increase was Immediately ap-
piled and added to the former price. the
rise being from $3.50 to $3.50. This
action by the Steel Corporation follow
ing the permitted increase in freight
rates is said to be largely responsible for
the action of the commission in rcvers-
ing it's former ruling and framing the
present complaint 1t Is pointed out that
under the present price practice system
every increase in freight rates allowed
by the commission automatically in
creases the profits of the Steel Corpora
ton and it's subsidiaries without any
corresponding increase in costs.
Price Added in Chicago.
Steel manufactured in Chicago must
be Sold under the Pittsburgh plus sys-
TEN. at $3.50 when the Pittsburgh base
is $50, the same situation applying as to
the arbitrary addition of an imaginary
freight charge.
In Birmingham, Ala. under the pres
ent system. purchasers must pay IS a
ton above the Pittsburgh base for rolled
steel, even though the steel Is manu-
factured in Birmingham from basic ma
terials procured close to that city. anu
even though the actual cost of manu-
facture is considerably less at Birming-
ham than in Pittsburgh.
The complaint charges that the United
States Steel Corporation controls through
its subsidiaries over rs per cent. Of all
the iron ore in the Lake Superior region.
the greater part of all iron ore deposits
in Alabama and all the ultimate iron
ore supply" in the United States. II
lso owns or controls. ii is alleged, a
ma jority Of the railroad and lake trans
portation systems which carry ore from
the mines to the manufacturing plants,
and all the coal mines and limestone
quarries necessary in the manufacture OF