Evening star., 1923-03-22
STEEL F|RMSDENY
|. FEDERAL CHARGES
Bethlehem and MidvaIe Reply
to Trade Boards Merger,
Complaint.

A blanket denial Of the complaint
of the Federal Trade Commission
against the proposed merger OF the
Bethlehem, Midvale and Lacawannh
steal companies was filed with the
commission today by the Bethlehem
and Midvale companies
The proposed combination, the
answer Of the two companies said,
would In no way violate the trade
commission act. 1t was declared
further that the commission had
acted beyond it's authority in issu-
ing it's complaints.
The Lackawanna company filed no
answer. but a letter from the former
that the Lackawanna company was
dissolved last October and no longer
had any corporate existence.
I'VE understand, however" the
letter said. that Bethlehem Steel
Corporation is filing an answer with
subsidiaries now owns or has control
Of all of the properties which were
formerly owned and controlled by
Lackawanna Steel Company and its
subsidiaries"
Deny End of Competition.
The Bethlehem and Midvale COM
panies denied fatty that the pro-
posed merger would result in the
elimination of competition. Specifi-
cally answering the commissions al
legations as to present competition,
the respondent companies said they
were without knowledge as to
whether the sale of the Lackawan-
competition with Bethlehem or Mid
vale
The respondents also declared
they were without knowledge as to
whether the proportion of from and
steel products originating 'in the ter
ritory north Of the Potomac river and
east OF line drawn north and south
through Buffalo, N. Y, and Johnstown.
Pa. which Is sold and shipped in
interstate commerce by the respond :
ents. after contamination of the pro-
posed merger. will be substantially
large as compared with the total of
iron and steel products manufactured
in this territory
The two COMPANIES denied that the
proposed merger would endoW them
with the potential or actual capacity
to exercise" dominant influence on
products In the above territory named
In the commissions complaint, or
would affect service. quality of prod
ucts. terms of credit, delivery. trans
portation or the separate solicitation
for sale upon any combination of
said elements or in the selling price
thereof"
Unfair Restrictions Denied.
Denial was also made that the
respondents contemplate in the mer-
ger amy union of the respondents
named in the complaint other than
such as has resulted or will result
from the acquisition of properties"
incident to the acquisition by the
Bethlehem Steel Corporation of the
Lackawanna company and its sub
sidiaries. with the consent Of their
respective stockholders. by purchase
last May.
The merger bill will result in no
unreasonable restriction upon compe-
tition amounting to restraint of
trade contrary to public policy" the
answer continued. in violation of the
Sherman act or any other law of the
United States.
When the merger first was proposed
Attorney General Daugherty held that
1t would not violate the law, but re-
Trained from commenting on the juris-
diction of the Trade Commission.
Subsequently. the Trade Commission
issued it's complaint, and now that the
answers have been received a hearing
will be held in the near future.