The Connecticut labor news., 1924-08-02

Plus" price, Is made up by taking the price at which the particular products are sold at Pittsburgh, say $50 ton, and to this is added that amount which is erivalent to what the freight charge on the products from Pittsburgh to Chicago would be, as if the products were actually shipped from Pittsburgh, or $7.0O per ton, making total Of $376O per ton. The Chicago steel user, therefore, who buys his steel from the Corporations mill in the city Ot Chi cago must pay $7.60 a ton more than Pittsburgh competitor pays. In like ia shion the Duluth steel user must pay $432O per ton for steel he buys from the Corporations mill at Duluth, while his Pittsburgh competitor pays only $50 per ton, because the Duluth man must pay the imaginary freight charge on the goods which were never shipped from Pittsburgh to Duluth, or $13,2O per ton. This freight charge IS referred to as imaginary" because there is no actual freight charge incurred No matter at what point, so long as it is outside of Pittsburgh, where the steel Is actually manufactured by the Corporation, the Corporation charges the Pittsburgh prices.
 As to the Pittsburgh Plus" system, the Commission finds that (a) 1t is con- trary to the public interest; (b) it is not based on the laws of supply and demand; Co it is a price-fNing scheme succeeding the old steel pools, Gary dinners, etc., (d) it is made possible by the dominant position occupied i'll the steel industry by the United States Steel Corporation; (e) 1t substantially lessens and eliminates competition; CD it destroys competitors; (g) It IS price discrimination not made in good faith to meet competition; (h) 1t IS an un- fair method of competition; G) 1t re- tards business in all steel centers eN- cept Pittsburgh; G) 1t adds unnneCes- sary millions of dollars annually to the cost of steel products, and specifically adds $3O,0OO,0O0 to the cost of steeel ,roducts paid by the farmers in eleven Western States; and (k) it increases prices.
 Domination of the steel industry by the United States Steel Corporation and its subsidiaries is an accepted fact. The Corporation and its subsidiaries produce about 50 per cent of the total rolled steel production in the United States and do an annual business az gregating approximately one and one half billion dollars.
 Named in the order which the Com mission issued are the United States Steel Corporation, American Bridge Company, American Sheet & Tin Plate Company, Carnegie Steel Company, American Steel & Wire Company, 1lli- nois Steel Company, Minnesota Steel Company, and the Tennessee Coal Iron & Railroad Company.
 The text of the order reads that the Corporation and subsidiaries cease and desist:
 l. From quoting for sale or selling in the course of interstate commerce their rolled steel products known as plates, bars, structural shapes, sheets, tin plate, wire and wire products at Pittsburgh Plus" prices.
 2. From quoting for sale or selling in the course of interstate commerce their said rolled steel products upon any other basing point than that where the products are manufactured or from which they are shipped.
 B From selling or contracting for the sale of or invoicing such steel pro- ducts in the course of interstate com ,rnerce without clearly and distinctly in dicating in such sales, or upon such contracts or invoices, how much is charged for such steel products, f. o. b. the producing or shipping point, and how much is charged for the actual transportation of said products, If any, from such producing or shipping point to destination.
 A. From discriminating in the course of interstate commerce, either directly, or indirectly, in price between different purchasers of their rolled steel products known as plates, bars, structural shapes, sh heets, tin plate, wire and wire products sold for use, consumption or resale within the United States or any Terri tory thereof or the District of Colurn- bia or any insular possession or other place under the jurisdiction of the United States, where the effect of such discrimination may be to substantially lessen competition in any line of in 1 terstate commerce; including competi- tion among the steel producers, or stee users, or both; provided, however, tha nothing herein contained shall proven
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