The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-09-18
US. STEEL TO
ENDPLUS PLAN
OF PRICE BASIS
Formal Statement Made In q.
dustry Will Abolish the
pittsburgh Plus" System
COMMISSION CHARGES
Alleged System of Basing
Price on Pittsburgh Pro-
ductiOn Was Wrong

Washington, Sept. 18.-The United
States Steel corporation and other
concerns affected have notified the
federal trade commission that they
will conform, "insofar as it is prac-
ticable to do so" to the commissions 8
order directing Abandonment OF the
Pittsburgh plus system OF estao-'
fishing prices in the industry.
The decision was made public late
yesterday by the commission, the
respondents having determined to
conform without admitting the vail
dity of said order or the jurlsdlc-
tion ,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 Ten
nessee Coal, Iron and Railroad COM
pany.
HELD ran UnlalI
The commissions order was dated
july 21, after long series of hear
ings and arguments which marked
the case as one of the most bitter
the federal agency has considered.
The order held that the Pittsburgh
plus system, by which the corpor-
alton and its subsidiaries quoted
prices from all plants, regardless OF
location, at the Pittsburgh base
price plus freight charges from that
city to destination, was an unfair
method of competition in violation
of the federal trade commission act
and a means of price discrimination
in violation of the Clayton act.
The commission further held that
the system lessened or eliminated
competition, retarded business in all
steel certers except Pittsburgh, and
added greatly to the cost Of steel pro-
ducts, amounting to $35, ,O0Q, 900 year
in IL western states. 1t was said the
order, similar in effect to the old
"steel pools," "Gary dinners" and
other methods regarded as price fix
ing systems contrary to public in
terest and not in accord with the
law of supply and demand.
Many Hearings Held
The proceeding was originated by
the commission and hearings were
held at practically all producing
points, with attorneys for 80 associ-
ated middle western states and steel
consumers later joining in the fight
to have the system abandoned.
The respondents, in the report
made public yesterday and dated
Tuesday announced that they shave
abandoned the Pittsburgh plus sys-
tenn, as defined in said order,
throughout their various organiza-
tions and will not hereafter make
use of the same" and asserted fur
ther: r.
"Respondents will not quote for
sale or sell their rolled steel prod
ucts upon any other basing point
than that where the products are
manufactured or from which they
are shipped.
"Sales from manufacturing plants,
fabricating plants and warehouses
will be made t. o. b. plants or ware
house, or at delivered prices, as oc-
casion may offer. In all cases of
sales at delivered prices, the con-
tract of sale, or the invoice will
clearly and distinctly indicate how
much is charged for the steel prod
ucts sold +. o. b., the producing, or
shipping point, and how much is
charged for the actual transporta-
ton of such products, if any, from
such producing or shipping point to
destination.
"All +. o. b. selling prices, whether
at the mills, warehouses or fabricat-
ing 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
the variations permitted by said
act"