The New York herald., 1922-09-01
STEEL MERGER PLAN
HELD TO Be UNFAIR
Federal Trade Commission OPP
poses Midvale- Republic
Inland Union.

WASHINGTON. Aug. 31.-The Federal
Trade Commission issued a formal COM
plant to-day charging that the pro-
posed merger of the Midvale. Republic
and Inland steel companies was In vio-
Iation of the law in that II constituted
ar unfair method of competition The
commissions decision was exactly the
reverse of that reached by the Depart
ment or Justice which recently in
formed Congress that the proposed COM
bination was not in contravention or
either the Webb, Clayton or the Sher-
man antitrust law. but was in line
with previous action of the commission
in issuing complaint against the Beth
observation-disclosures merger which mer-
ger, too, was declared by the Attorney
General to be0as free of unfair trade
practices as the proposed Midvale-Re-
public-Inland combination.
The commission allowed thirty days
in which to file answers, upon which, IT
was explained. will be determined the
issues ito be tried out in formal mat
ter"
The complaint declared that the COM
mission had reason to believe that the
proposed merger (which will center the
control of some thirty-fve corporations
in one group will eliminate competition
between the companies, lessen competi-
ton and restrain trade and tend to
create monopoly In iron and steel prod
ucts in interstate commerce This con-
dtion, 1t was averrel. would be felt
particularly in Pennsylvania. Ohio West
Virginia. kentucky. Indiana, Michigan
and Illinois.
Commissioner Van Fleet dissented
from the majority decision.
~. I'll oLx 1asv III rNta a
by analyzing the various antitrust laws
and setting forth in detail the scope
Of authority vested in the Federal trade
act. The case at issue, he said, like
that of tn, complaint against the Beth
lehem- -LacKawanna combination, Is OF
paramount Importance to the parties In
volved and to the public"
He cited the decision 81 the Attorney
General. but explained that while Mr.
Daugherty averred the mergers could
not be construed as violations Of the
Sherman law he had refrained from
expressing opinion as to the applica.
tion of the Federal trade act The dis
tinction, the chairman added, was mo-
clear to the general public. nor yet tc
the whole of the legal fraternity" Mr.
Gaskill then illustrated the scope of the
various laws taken into consideration
commission in reaching their respective
opinions concerning the mergers.
| Regarding the complaint of the Fed
eral Trade Commission against the con-
solidation Of the Midvale Steel and Ord
nance Company, the Republic Iron and
Steel Company and the Inland Stee
| Company the following statement was
made yesterday by Thomas l.. Chad
bourne of the law firm of Chadbourne
| Babbitt & Wallace. who was one of the
| chief figures in the negotiations that
brought the companies into agreement
last spring.
"Inasmuch as the Attorney Genera
has reported favorably on the proposed
merger. and all OF the eminent counse
whose opinion has been sought have ap.
proved the project as entirely legal, tho
lied me to announce that they intenc
| to proceed with the necessary steps L
make the project effective"
| Mr.. Chadbourne was unable TO say
whether the plan VIII be consummatee
In all details as originally drafted oi
with some notifications.
In their decision the three companies
are following the precedent set by the
Bethlehem Steel Corporation and the
I.ackawanna Steel Company. which after
receiving a clean bill Of health from tho
Attorney General and an adverse report
from the Federal Trade Commission are
proceeding TO consummate the merger OF
those two companies.