The Washington herald., 1921-04-30

the steel corporation through the
large percentage of the steel man
ufacturing business done by 1t and
supported by 1t its consequent po-
tential power to embarrass or de-
stroy its competitors by unduly
lowering its price schedules is tan
tamount to the naming by the cor
poration Of prices that are to be
charged by all steel manufacturers
in the United States. This steel
manufacturers price practice" it
is alleged, makes it impossible for
purchasers of rolled steel to secure
the product from any manufac-
turers at prices substantially diff
ferent from those contained in the
price schedules, or Quotations, is
sued by the steel corporation.
These prices, the complaint charges,
Pittsburgh plus" price, "Birming-
ham" price.
.Pittsburgh Plus' Device.
Paragraph describes in detail
the Pittsburgh plus" price device.
This paragraph recites: That the
Pittsburgh base price. or price
(. o. b. Pittsburgh, is the price
which purchasers there must pay
respondents for rolled steel in Pitts
burgh; that the Pittsburgh plus
price is different from the Pitts
burgh base price and is the price
purchasers outside of Pittsburgh
Except at Birmingham, Alabama,
as hereinafter mentioned) must
pay respondents for all rolled steel
except rails; that the said price is
arbitrarily fixed by adding to the
Pittsburgh base price the freight
rate on such steel from Pittsburgh,
even though the said product is not
purchased at or shipped from Pitts
burgh. Where the Pittsburgh plus
price is charged for rolled steel the
transportation charge thereon, If
any, from the plant of its manufac-
ture to the purchaser thereof, is
paid by the respondent steel manu-
facturer. With respondents Pitts
burgh base price on rolled steel IN
Pittsburgh at $50. the Pittsburgh
plus price at Duluth. Mimi, for
rolled steel manufactured in Du-
luth, and delivered to the pur-
chaser in Duluth. is $500, the
added $500 being the freight
charge from Pittsburgh to Duluth.
though the steel in such case is not
shipped from Pittsburgh or any
other point, but is manufactured
and delivered in Duluth. With the
Pittsburgh base price at $50, the
Pittsburgh plus price at Chicago.
for steel manufactured and deliv-
cred in Chicago, is $3.50 When
steel is purchased from subsidiary
in Gary. Ind. and delivered to La
Porte, Ind, the price is the Pitts
bursh base price of $50 per ton,
plus the freight charge of $40 per
ton from Pittsburgh to La Porte,
making a total of s57.1o per ton.
The transportation charge of $3.50
per ton on such steel from the plan,
Of its manufacture Gary to the
purchaser (at La Porte) is paid by
such subsidiary.
Birmingh ham Price.
That the said Birmingham price
is different from the Pittsburgh base
price. being the price which pur-
chasers must pay for said product
in Birmingham. Ala. and is arbi-
trarily arrived at by adding to the
said Pittsburgh absse price an ad-
ditional price Of IS per ton. ~.
Paragraph seven OF the complaint
alleges that under the Pittsburgh
plus price system the price on steel
manufactured in Gary is $3.50 per
ton more than price on steel manu-
factured in Pittsburgh. notwith-
standing the fact that steel is man.
ufactured in Gary at less cost than
Pittsburgh where the expenses of
transporting basic materials is much
greater than at Gary. 1t is charged
that the price at Atlanta on steel
manufactured at Birmingham is
s12.50 per ton greater than its price
in Pittsburgh notwithstanding the
fact that 1t is manufactured at much
less cost at Birmingham than at
Pittsburgh since basic materials
used in the Birmingham mill are
in close proximity to Birmingham.
Birmingham Price Unfair.
In paragraph eight the complaint
alleges that the Birmingham price
is unfair and unlawful because the
amount of IS per ton by which 1t
exceeds the Pittsburgh base price Is
arbitrarily added for the purpose of
in favor of steel con-
sumers in Birmingham. and in favor
of steel consumers in Pittsburgh as
against those in Birmingham.
Before the late increase in rail-
road freight rates, the complaint
continues. the Birmingham price
was 80 per ton over the Pittsburgh
base price. but the 50 differentiai
was simultaneously increased. It is
declared that Birmingham purchasers
of steel cannot get the product from
any steel manufacturer at any price
less than the Birmingham price and
that neither are steel purchasers
outside of Birmingham able to pur-
chase 1t at the Birmingham price be-
cause Of the practice already men
toned.
Paragraph nine sets out that the
determinations in price are not be-
cause of any difference in grade,
quality, or quantity, nor are they
such as make only allowance for