Evening star., 1924-10-01

While welcoming as an encourag-
ing sign the decision of the United
States Steel Corporation to accept
without a fight in the courts the Fed
eral Trade Commissions ban against
the Pittsburgh plus price system,
many editors doubt that the actual
effect upon the industry will be i'm
portant. As the Birmingham News
puts it, the ultimate effect of the
/ commissions ruling-certainly so far
AS Birmingham is concerned-will not
he great. The ruling, in other words.
will have brought about a distinction
without a great difference"
If the effects of the Pittsburgh plus
system have been as they have been
Cleveland Plain Dealer feels, we may
properly anticipate more rapid
growth Of the steel industry In the
Middle West, possibly in the far
West, and in the South, growth
probably at the expense of the
Eastern steel center" On the other
hand, this paper suggests if the
position Of the Steel Corporation in
defense of the practice is sound "the
result Of its abandonment will be
keen competition between the several
steel centers and a degree Of insta-
bility in the industry which in the
end will prove more disadvantageous
to steel consumers than the price
fixing policy" Finally, however, the
Plain Dealer points out that the fail
ure of the steel people to carry the
case to the courts is an indication
that they are not greatly concerned
over the industry's future-either the
Importance OF Pittsburgh plus has
been overemphasized or a substitute
price policy is being formulated to
take it's place
There is a chance, according to the
indianapolis News. that manufac-
turerS at other points than Pittsburgh
may continue to charge the old price.
or even to increase it, thus giving the
purchaser none of the advantage of
the new arrangement; but the order
made by the Steel Corporation is de-
signed as q safeguard against such
possibility and, at any rate,
whatever the advantage may prove
to be, it is a great deal to have es-
tablished a principle that is correct"
Should the Steel Corporation ever
contest the order, the Pittsburgh
Gazette Times hopes the fact finding
will be intruSted TO a moro competent
body than the Federal Trade Commits
sion" The order against Pittsburgh
plus was made, the GazetteTimes de-
clares, on the basis of conclusions of
its effects that were wholly unwar-
ranted and the disclosures of inepu-
tude or prejudice, or both, that have
foIlowed issuance Of the prohibitory
order have had the sad effect of
greatly reducing public confidence in
the commission"
The New Orleans Times-Picayune,
remarking that arbitrary additions
to steel quotations of freight charges
that were never paid. for haul that
was never made, never has been sat
isfactorily explained" adds: "Opposi-
ton to the system has Increased
from year to year. and the final line
up against it, in the proceedings be-
fore the Trade Commission was al
most National in its sweep" There
fore the Milwaukee Journal claims
wisdom has directed the course of the
Steel Corporation in conforming to
the order, because public opinion
had grown so strong against the prac-
tice that legislation against 1t would
have been only a matter Of time"
The policy Of accepting the Gov
ernment order, the Detroit News also
holds, "is one which should win the
public's friendship, not bad thing
for even the largest corporation to
possess. In tacC' lhe fAiDany Nhich
erbocker Press feels the United
states steel has set a precedent, and
the incident is an interesting index
of the new day in relationship be-
tween the Government and business
X + * X
The Duluth Herald regards the de-
velopment as "a great victory for fair
trade practices, and also a great vic
tory for Duluth, which led In the fight
against the wrong practice that is now
abolished, and which ought to be ono al
the chief benefciaries Of a reform that