Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-09-18
u. S. STEEL BOWS
PRICE DECISION
Pittsburgh Plus System to Be
! Dropped, Federal Trade
! Commission Is Told.

The United States Steel Corporation
and other companies concerned Will
conform to the Federal Trade Com
missions order directing that the
Pittsburgh plus system OF establish
ing prices in the industry be abandon
ed, the commission was advised yes
terday. The steel companies, how
e,Fer, limited their acceptance of the
order by agreeing to accede only to
the utmost point OF practicability
They declined to admit its validity
or the jurisdiction of the commission
to make the same"
The response was Signed by the
United States Steel Corporation
American Bridge Company. American
Sheet and Tin Plate Company. Car
negie Steel Company, National Tube
Company, American Steel and Wire
Company, Illinois Steel Company.
Minnesota Steel Company and, Tea
nessee Coal, Iron and Railroad Com
pany.
Case Bitterly Fought.
The commissions order was dlteG
July Fl. after a long series OF hear
ings and arguments. WhiGh marked
the case as one of the most bitter
the Federal agency has considered
The order held that the Pitts ouf"h
plus system, by which the corporation
atlu It's SubS4uIdFltS htDt|u piittS
from all plants. REGARDLESS of loca-
ton, at the Pittsburgh base price plt;s
freight charges from that city g
destination. was an Unfair nfGthCd Of
competition in violation of tle Fed
eral Trade Commission act and :
means OF price discrimination in Vie
lation of the Clayton act.
The commission further hid that
The system lessened or eliminated
LODI ht1sf al
steel ceutcrS except Pittsburgh and
added greatly to the cost of steel
products. amounting TO S3o,oa0.o0o Il
year in II Western states. |. was
said the order is similar in effect to
the old steel pools. t;ary diunsts.
and other methods regarded as pr.ce-
fixing systems contrary to public in
terest and not in accord vita the
law OF supply and demand.
states Aided Commission.
The oceeding wis originated b.
the commission and hearings We're
held at practically all producing
points. with attorneys for 81 associ-
ated Middle Western states and steel
consumers later joining in the fight
10 have the system abandoned.
The respondents, in The report
dated Tuesday. announced that they
nave aba ndOHed the Pittsburgh Plus
system. as defined in said order,
throughout Their various orGaniza-
lions and will not hereafter make
Use of the same. ana a%s"lrcd
further:
Respondents VIII not quote FOR
sale or sell their rolled steel products
upon any other basing point than tina,
where the products are ma nufactured
or from which they are shipped.
Sales TO he Made r. O. -
SALES from manufacturing plants
fabricating plants and warehouses
will be made +. o. b. plant or ware
house. or at delivered prices. as oc-
Casion may Offer. In all eases OF
sales at delivered prices the contract
of sale or the invoice viii clearly and
distinctly Indicate how much is
charged for the ste el products sold
f. 0. b. the producing or shipping
point, and how much is charged for
the actual transportation Of such prod
ducts. if any, from such producing
or shipping point to destination.
All f. o. b. seilin" prices, whether at
the mills. warehouses or fabricatine
plants, and all delivered prices, will
be non discriminatory within the
meaning of the second section of the
Clayton act. but will be subject to
variations permitted by said act"