New-York tribune., 1922-05-19
Untel'myer
Finds Steel
Price Fixing 2
L accompanies in Combine
That Agrees ON Export
Rates Every 3 Months,
Director Tells Hearing
In Power to Name
Domestic CHARGES
Merger Terms Only Fairly
Satisfactory, Head of
Lackawanna Co. Asserts

The Lockwood committee began its
inquiry into the Lackawanna- -Bethle
hem and the proposed company
steel mergers yesterday by placing two
captains in the industry on the wit
ness stand.
1t was made evident from the begin
ming that Samuel Untcrmyer. the COM
mittee's counsel, seeks to discover not
only what general effect on the cost Of
housing construction the projected
combines will have but also whether
the mergers arc not intended to con-
ceal price fixing arrangements.
This was unmi stakably brought out
president OF the Consolidated Steel
Corporation. Sl0,0OO,0O0 undertaking
organized as the export selling agency
for eleven of the Independent steel
companies. Mr.. Clarke. explaining that
the heads Of these companies met reg
ularly to determine the export price
of their products, in accordance with
the Webb Pomerene ac,, acmitted that
they could fix prices for the domestic
market 'if they had a mind to do it,"
He didn't think, however, that such
development was likely or natural.
Untcrmyer Points to Danger
Mr.. Untermyer pointed out how,
under this provision of the Webb
Pomerene act, all the steel companies
in the country could get together "in a
rock-ribbed combination on home
prices"
Suppose the steel companies of the
United States hypotheszed the at
torncy, "were to come into your com
pany for the purpose of export; that
under the Webb Pomerene bill, and
you realize that it would be a very
natural thing that they should fix home
prices on the basis of export prices?'
81 don't know that it would" was
Mr. Clarke's reply.
Through the examination of Moses
Taylor, chairman of the board of the
Lackawanna Steel Company, it was
brought out that the contract under
which the Lackawanna corporation is
to be absorbed by the Bethlehem com
pany has not been completed and was
only Fairly satisfactory" in it's present
form. heated discussion arose be
tween counsel and Mr.. Taylor over the
Whereabouts of this tentative draft
Mr.. Untermyer insisted that it be pro
duccd, saying, "lf it is only a scrap Of
paper, this committee wants to eX
anime it," The witness said he woult
try to get it from the company's at
torney.
Negotiations on Two Years
-.
leading up to the present status of the
La ackawanna- Bethlehem merger hao
been begun about two years ago. He
had never heard that the Bethlehem
firm had been proposed as participant
| in the six-company merger. In the
I original discussions on the Lacka
wanna Bethlehem combine he said the
! inclusion of the Midvalc Steel and Ord
nance company had also been proposed
Mr.. Untermyer opened his examina
ton of MIR. Clarke by questioning him
! or the methods of business of the Con
solidated company and its relations
with the United States Steel Corpora
ton. The witness testified that the
Consolidated did an export business IL
1920 of 85,ooo,oo0.
Its eleven member companies are the
Bethlehem Steel Company, the Lacka
wanna Steel Company, the Lukens Stee
Company, the Midvale Steel and Ord
pany, Republic Iron and Steel Company
| 1Trumbull Steel Company, Sharon stse
Hoop Company, Brier Hill Steel Com
pany, Youngstown Sheet and Tube Com
pany and the Whitaker Glasessnel
Company.
The only plants not in the Consol
dated aside from. the United State:
| Steel Corporation, are Jones & Laugh
lin, Inland Steel Company, Steel ant
! Tube Company of America and thu
Pittsburgh Steel Company.
The company was organized in 1919
said Mr.. Clarke. under the Webb Pom
creme act, for the purpose Of foreign
sale and exploitation Of the product
of the member companies, and in it.
best year. 1920, it did a business o
$s5.ooo,ooo. The business was allotte'
to the companies on the basis Of th
tonnage pledged He said prices wer'
fixed about every three months by tn
board of directors upon his recommen
dation and approval of the executive
committee.
The chief competitor in the foreig1
market, Mr.. Clarke testified, was tn
United States Steel Products Company
the export agency for the Unite
States Steel Corporation. Here NJ
Untermyer sought a comparison of tn
prices between the Consolidated an
United States Steel and how Mr.. Clark
reached his figures for the foreig
market. The witness insisted the
were based upor conditions in foreig
markets and the prices of his compet1
tors, which he said, he learned 1ror
his foreign agents. ,
The witness said that while the fig
fc..t,.uad an mana four)