The Holt County sentinel., 1921-05-20
FARM BUREAU NOTES.


1
much like agriculture. Nevertheless a
case which has been pending before
the Federal Trade Commission for
months, known as the "Putsburg Plus"
case Is Of very vital interest to every
farmer in the United States.
trder the "Pittsburg Plus" system
the price Of rolled steel products in
prac'ic icaly all portions Of the United |
State, with the exception Of certain |
part " the South is the Pittsburg |
prico plus freight from pittsburg. /
lror ure nroduced in Northern Michi-
gar shipped to Gary, Ind, just out
side " Chicago, TO be manufactured |
into -'ocl. The steel appears upon the !;
mnrkc. then at .he price Of s,ce' IN |
PittshIrg plus fictitious freight |
charge from Pittsburg, amounting TO |
something like 500 per ton for each |
ton of steel at the Gary plant.
A an example Of how this boosting |
Of steel prices works out, Clifford |
Thorc. general counsel for the Amer |
lean Farm Bureau Federation, tells us |
that this fictitious freight charge in
croaso. the cost Of the Federal Re-
serve Rank Building now being erected
in Chicago by 100000. More than this.
according to Judge 'Gary's own state
: ment, Il costs twenty-five per cent
NOR" to produce steel in Pittsburg
thar at Gary, Ind.
: Quoting from MIR. Thornc's state
: men,: "lf the Gary plant ships some
: stecl plates one hundred miles out Of
: Chicago II will sell them at lower
price than to customer at its very
a. q
,cost. Thi. strange artificial system uf
8 fixing prices has mulctcd the northern
and .uvihcrn portions Of the nation
out 90 millions Of dollars. We are
paying q freight cost Of $3.50 on every
ton oi steel we use. when nobody has
: ever actually paid that freight for the
3 stc,I has not been shipped from Pitts
!: burg Steel plates made at Duluth,
Z adjacent to the very field Of produc-
: tiou ~ the ore, are sold ut the Pitts
; burg price plus freight, This system
Z operate. in defiance Of the law Of
= surry and demand. The rule is en-
ioi.'d at Duluth where supply exceeds
= der wand, and at Chicago where demand
exceeds supply. II works during sea-
q son. of plenty and during seasons OF
, fam uo. The Independent manufacture,
: er may vary the base price from time
=ito time and hc above or below the
Il scale ~ the steel corporation, and they
4 oh, rryc this rigid rule for points out
d side uf rittsbuIg TO the very penny.
"Thc commercial effect of this sys-
= ten +. "A. follows: Manufacturers OF
= fini he'd products in the West have to
. nav An artificial fictitious freight cost
q on their raw products, and genuine
. freight cost ON their finished products
e II ,L,y attempt to market their wares
In ,hc cust. This Is practically prohib
4 itiy,. and have competition whlei
Fl woi,'d be for the benefit Of the fa,mo
nnl consumer Of steel In the east. O'
IN, other hand, the eastern manufae
,urers can get into the west with pre-
ciscIy the same freight cost on bot
raw and finished product that IN
- western competitor has had 20 pay
Mere il not for this, the western miul
eactur,r could cut way below hi
= EASTERN councillors. Here again IN
consumer suffers. The Federal Trad
~ Commission deserves great praise.
" finnIly successful, this will mean muc
W. toward establishing competition In tn
~, manufacturers Of steel products, an
o3 /, will foster the industrial develol
A ment Of the west
a. When asked concerning the impof'
unce of the decision 10 the thtmc
hor President ], r. Howard, Of the Amel
III ',,r Farm Bureau Federation, Hai'
'n"i ,i iThe farmer is a very large user
,nJ UJ .teei and steel products. We have
~: ~ ,he mast been paying what is in effec
49, bonus on all our steel purchase
an equivalent to the additional freigl
on, ate from Pittsburg TO the point
Iis- orivin or Of the manufacture OF s'e'
In the majority Of cases this NJ
Ina, n,orn,ed 10 from S4.00 to $500 p
,on. Setting aside the Pittsburg, p,,,
., a nian should result in substantia' ul
iiaI count TO the farmer on tne prlvv
eas. which he has to pay Tor wire, no,
! of nochinrry and othei steel conihV'
n 0O res II |, A source vf grcat sa'lsfaetl
d,.y ,n mo 10 know that the action oi !
,be American Farm Bureau Federatl
d Of has had something to do with OPEN
iffi- the investigation,' IT,,
All The Federal Trade Commission
.sed. s;linp complaint against the "
on steel CORPORATION which was annou'
cts" al Anr;I goth has performed one
,ere- tho most important acts OF its eh'
II of h;s,ory. according 70 Clifford lhor
'abe The way Is Finally open ioi ,ho ba,
o BE- ment, which has played INTO ". ~" '
, re- Of The Pittsburg steel men ae the
und pense OF every farmer III "'H"''''
elsewhere. s,s
the Committee OF To-
) the The next session OF .hc ;,taa
,uild, Live Stock Marketing Ioni'',, NJ
ht 10 Fifteen will be conVenea ~, or
alton, ports will be made by 'he SUI su' or,
ident. ly marketing, centfa, ,i,to. ma
sour, Fifteen is anxious TO receive nhas Ss
dress, live stock marketing ssII'