The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1922-06-08
COVE RNMENT ACTS
To HALT MERGE R
Action Taken on Resolution
Sponsored by LaFOlette.
SETS HEARING FOR JULY "a
Trade Commission Issues Citation
Against the Bethlehem and Lacka-
wanna steel Corporations-To
Test Mergers Legality.

Washington, June 6.-The govern
ment took its first step toward putting
Il 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 stifle 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, 1.-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 it control in excess of % per
cent of all the steel rails produced in
the United States, 33i2 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 Monopoize."
Furthermore, the commission set
forth, the combination constitutes an
attempt to monopoli2e 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-
yania, bethlehem Mines corporation
of Delaware in addition to various
other corporations engaged in ship
building and transportation"
Subsidiaries Named.
The Lackawanna's 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; Ho-
bart Iron company, Minnesota; Cor
sica Iron company, Minnesota; Verona
Mining company, Michigan Odanah
Iron company, Wisconsin, Hoyt Min
ing company, Minnesota; Negula Mine
company, Ohio; Lackawanna Coal and
Coke company, Pennsylvania; Els
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 year, it was disclosed.