Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1922-06-08
U. S. ACTS TO
Halt MERCER
Trade Body Responds to Resolu-
ton Sponsored by
La Toilette.
HEARING SET FOR JULY "a
Federal Trade Commission Issues
Citation Against Bethlehem and
LackaWanna Steel Corporations
TO Test Legality of Merger.

Washington, June 6.-The govern
ment took its first step toward putting
possible check on the big steel con-
solicitations, now in the making, which
have been described in the senate as
constituting the formation of "a sec
ond steel trust"
Acting in response to a resolution
sponsored by Senator La Toilette
(Rep) of Wisconsin, the federal trade
commission issued a citation against
the Bethlehem and Lackawanna Steel
corporations merger which is now
virtually completed, and charged that
the combination will stifie competi-
ton and contains dangerous tenden-
cies In restraint of trade and COM
merce.
"Of course" said the commissions
letter. transmitting the complaint of
the senate, "the issue of the complaint
is merely the institution of formal
proceedings to test the legality of the
proposed merger"
Hearing on July "a.
July "a was named as the date on
which a hearing will be held here:
With regard to the proposed mer-
ger of the Midvale, Republic, Inland
companies and the formation of the
"North American Steel company" the
company stated that the tentative ar
rangements have been completed to-
ward the project, but the actions of
the three companies have not adj
vanced far enough toward completion
to reveal sufficient facts upon which
action can be taken. 1t was stated,
however, that close tab is being kept
on the negotiations.
The commissions citation against
the Observation-Disclosures merger
set forth that the consolidation would
give 1t control in excess of % per
cent of all the stee rails produced in
the United States, 331a per cent of
all the rails produced east of Ohio
and north of the Potomac river, 26 per
cent of all long angled splice bars
and other rail accessories produced
in the United States, 80 per cent of
all rail accessories produced east of
Ohio and north of the Potomac, be-
sides Every substantial percentages"
of other crude and finished iron and
steel products made in the United
States.
attempt to Monopolize."
Furthermore, the commission set
forth, the combination constitutes an
attempt to monopolize interstate
trade and commerce in many sections,
and particularly in the New England
states, New York, New Jersey and
eastern Pennsylvania.
Two dozen smaller steel companies,
all subsidiaries of either the Bethle-
hem or Lackawanna companies. are
named in the commissions citation.
The Bethlehem corporation, the
complaint says, owns the controlling
interest in the BETH Mary corporation
of Maryland, the Bethlehem Steel
Bridge corporation of Delaware. the
Cornwall Ore Banks corporation of
PENNSYLVANIA, the Bethlehem Iron
Mines company of New York, Finch
Run Coal company of Delaware, Penn
Mary Coal corporation of Pennsyl-
vauia. Bethlehem Mines corporation
of Delaware, in addition to various
other corporations engaged in ship
building and transportation
Subsidiaries Named.
The Lackawanna' subsidiaries
were named as follows:
Lackawanna Bridge Works corpora
ton, New York; Sunday Lake Iron
company, Michigan; Brotherton Iron
Milling company. Michigan; Wither-
bee Sherman & Co., New York; Ro-
bart Iron company, Minnesota: Cor
sica Iron company, Minnesota; Verona
Mining company, Michigan; 0danah
Iron company. Wisconsin; Hoyt Min
Ing company, Minnesota: Negula Mine
company, Ohio; Lackawanna Coal and
Coke company, Pennsylvania Ellis
worth Golfers company, pennsyl-
vania; Lackawanna Steel company of
New Jersey.
The commission has been engaged
In an investigation of the mergers for
more than n year II waS disclosed