The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-07-12
STEEL KINGS
MAY SUBMIT
CODE TODAY
Controversy Over Rules for
Biggest Industry Is
Believed Settled.
JOHNSON WAITS ACTION
Recovery Administrator Is
Informed Fair Practice
Regulations Ready.
BY MARSHALL MNEIL
Times Special Writer

WASHINGTON, July u. - The
steelmasters, lords of the greatest
American industry, are prepared to
regulate their business and submit
a code of fair practices to the
national industrial recovery admin
istration.
This fiat announcement has been
made by Administrator Hugh john
son, and apparently means that the
controversy within this industry.
whose roaring furnaces have illu-
mined the gilded figures of the
Morgans, the Carnegies, the Fricks,
the Schwabs, has about ended.
One point of difference, according
to reports here, was over the pro-
posed legalization of pittsburgh
plus" prices, that were ordered out
lawed by the federal trade commits
sion in 1924.
The backbone of one draft of a
proposed code for steel was this
legalization, possible under the re-
covery law because industries agree
ing to code which fix favorable
hours of labor and wage levels for
workers may be relieved of the
pressure Of the antitrust laws.
Code Is Expected Today
Whether the code Johnson ex-
poets today will retain this proposed
legalization of Pittsburgh plus" is
not known. 1t was reported that
when the recovery administration
first learned of this proposal consid-
cradle protest resulted.
If the code, which administrator
Johnson expects to represent 95 per
cent Of the industry, is presented
today, 1t will be called up for hear
ings on July 10.
In the finding of fact upon which
the federal trade commission based
its cease-and-desist order of nine
years ago, Pittsburgh plus" was
described as the formula used by
steel companies to sell their
O.. products manufactured at and
shipped from their plants outside of
the city Of Pittsburgh at the said
Pittsburgh base price plus an
amount equivalent to what the rail-
road freight charges on said pro-
ducts would be from Pittsburgh to
the customers destination, if such
products were actually shipped from
Pittsburgh"
Steel Rails Cause Dispute
This system, the trade commission
said, necessarily restricts and fire.
quently eXtinguishes the market
which freight rates would ordinarily
determine. The effect of Pittsburgh
plus prices greatly are aggravated
in depressed business periods when
manufacturers need additional BUSH
ness the most"
Because some believe the long
term maintenance of steel rail
prices by steel companies will figure
in the hearing on the industry'S
code, it was recalled here that in
1919 Walker D. Hines, then director
general of railroads, engaged in a
hot controversy with the industrial
board over these very costs.
George N. Peek. now administra-
tor of the farm relief act, was with
the industrial board then, and it's
approval of the pegged price for
steel rails reused Hines into at least
one scorching statement, following
his refusal to buy rails at the APP
proved figure.
Eastman May Make Probe
Further indication that Joseph
Eastman, federal co-ordinator Of
railroads, nigh look into the steel
rail price maintenance that he has
termed a stupidity" has been
given.
A formal statement from his Of
flee said he was creating q section
Of purchases" to deal with such
matters as the Standardization Of
materials, supplies, and also equip
ment, and with simplified practice
and improvement in purchasing