The New York herald., 1922-05-19
STEEL PRICE FIXING
WI7HINLAW, IS hint
Untermyer Finds Export
Combinations Able to
Agree at Home.
MOSES TAYLOR HEARD
E. A. s. Clarke Tells Work..
ings Of Selling Agency
for Independents.
HAD AN s85,ooo,ooO YEAR
Lockwood Committee to Take
New Turn in Delving Into
Big Mergers.
HAD AN $85, 100000 YEAR

Inquiry by the Lockwood housing
committee into the Lackawanna-B Beth
lehem steel mergers and other pend
Ing combinations revealed yesterday
the committees suspicion that the
companies were using the Webb
Pomerene act of 1918 as a screen for
domestic price fixing.
Tie testimony. which was inter-
rupted because heads Of several Of
the independent steel companies were
IN Washington on invitation Of Presi-
dent Harding. indicated that the hous-
ing inquiry will follow new channels.
The Webb Pomerene act permits
the organization of competitors in the
export business. Samuel Untermyer.
counsel to the Lockwood committee,
made it clear that the members were
curious to know whether the steel
manufacturers combined on export
prices with something more tkan n
tacit understanding that the domestic
schedules were to conform to the ex-
port lists.
The result. Mr.. Untermyer con-
tended, would be to create a rock
ribbed combination on the domestic
sale price Of the many products of the
steel mills entering into the building
industry.
Tells of Export Arrangement.
Edmund A. S. Clarke, 25 Broadway.
president of the Consolidated Steel Cor
poration. Questioning by Mr.. Inter
inyer. showed that the Consolidated was
incorporated in December, 1918, some
months after the passage of the Webb
Pomerene act, to act as sole sales agent
abroad for its stockholders Of member
companies.
Although capitalized at $4,000, 900,
Err Clarke explained that only about
s2,5oo.0OO actually was issued and about
as nauch more subscribed for on the
basis of 800 par value. The stock was
apportioned according to the ingot pro-
ducing capacity of the member companies
and stands:
Bethlehem Steel Company. 10000
shares. $1,000. 900: Lackawanna Steel
Company 100000; Lukens Steel Com
pany. 100000 Midvale steel and Ord
nance Company and Cambria Steel Com
Company. $525,000; Sharon Steel Hoop
Company, 100000; Brier Hill Steel
Company, $3.50, 900 Trumbull Steel Com
pany. 100000; Youngstown Sheet and
Tube Company. 100000. and the Whit
alier-Glessner Company. 100000.
The Consolidated Steel Corporations
best year was 1920. when its total busi-
ness, according to Mr.. Clarke, was ap-
proximately $S5,000,000. The corpora
koI fN,-
portions foreign business among con-
stituent companies according to capacity
and retains S per cent. of the invoice
price to cover overhead.
Learns Market Conditions.
Mr.. Untermyer led Mr.. Clarke In some
detail over the method by which the
Consolidated Steel Corporation kept III
touch with conditions and prices in the
foreign markets. The witness did not
know whether the Consolidated's prices
changed at the same time as those OF
the United States Steel Products Com
pany. the subsidiary Of the United States
Steel Corporation, which Is not men,
ber of the Consolidated.
Mr.. Untermyer asked:
"Suppose the steel companies OF the
United States were to avail themselves
of the provisions of the Webb Pomerene
bill and to come into your company for
the purposes Of export, you know, do
YOU not that under the Webb Pomerene
law that would be a perfectly legitimate
thing for them to do
"I so understand"
And you realize that. having got
into a perfectly legitimate corporation
for the purpose of fixing export prices.
that would be p very natural thing that
they should fix home prices on the basis
OF export prices. that would be a very
natural development. would 1t not?"
IT don't know that 1t would"
do you think human nature is any
\ different in the steel business than in
any other business?"
"I do not know that it is"