Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1922-06-14
GOVERNMENT ACTS
To HALT MERGER
Action Is Taken on Resolution
Sponsored by la Toilette.
SETS HEARING FOR JULY "a
Trade Commission Issues a Citation
Against the Bethlehem and laeka-
wanna Steel corporations-To
Test Mergers Legality.

] est mergers Le9diitJ.
Washington, Ju.e 6.--The govern
ment took It's first step toward putting
a 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 10 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 st.tie 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 %.
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 he formation of the
North American Steel company" the
company stated hat the tentative ar
rangements nave been completed to-
ward the project, but the actions OF
the three companies have not ad-
vanced far enough toward completion
TO reveal sufficient facts upon which
action can be taken. II 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 II control in excess of % per
cent of all the steel rails produced in
the United States, 1914 per cent Of
all the rails produced east Of Ohio
and north of the Potomac river, 90 per
cent of all long angled splice bars
and other rail accessories produced
in the United States. go 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 monopollze 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,
MI subsidiaries Of either the Bethle-
hem or Lackawanna companies. are
uamed in the commissions citation.
TIE 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-
vania. Bethlehem Mines corporation
bf Delaware. in addition 10 various
other corporations engaged In ship
building and transportation"
Subsidiaries Named.
The Lackawanna's subsidiaries were
named as follows:
Lackawahna Bridge Works corpora
tiOn, 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 ami
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 a year. IL was disclosed.