Evening star., 1947-08-18
FTCChargesC Collision
By Sfee|makers 10 Fix
Prices, Curb Trade
by shs k.seeiafsd Press

BY the A.seeiafsd Press
The Government opened its
slugging match against high
prices today and picked a heavy
weight antagonist-the steel in
dustry.
In cease and desist" action, the
Federal Trade Commission charged
the Nations steelmakers with con-
spiracy to fix prices and stifle COM
petition.
The complaint filed last night
contended that illegal collision on
pricing is fostered by the American
Iron and Steel Institute of New
York and its more than 100 mem
bers, including the giant United
States Steel Corp.
There was no immediate industry
comment.
The FrC declared that by "de-
stroying price, competition" steel
producers are able to dominate
and manipulate the markets in
which their unorganized customers
and consumers must buy"
Question Raised.
The action Immediately raised
the question: Will the Justice De-
partment, In its newly announced
investigation of food, clothing and
housing prices, seek antitrust action
against steel, because of its impor-
tance in construction costs?
FTC officials said privately they
believe not, because I'VE and the
Justice Department try to avoid
duplication"
The FTC complaint came only a
month after industry-wide price in
creases ranging around SIS to 81 a
ton. In ordering them into effect,
the industry ignored President Thu
mans request that it wait ana see"
whether the coal wage settlement
made price boosts necessary.
Hearing Set for Sept. 10.
All the defendants were instructed
to appear for hearing September
10 in the FTC of1ices here and were
allowed 20 days to file answers.
After hearings, the commission
may order the pricing practices
halted within go days.
Such an order-equivalent to an
injunction and subject to appeal
is enforceable in the courts The
maximum penalty for violation is
5000 fine.
FrCs complaint strikes hardest
Mt the "basing point" system of
pricing. The Government said it
makes the delivered price of steel
to consumer identical, regardless
OF the length of freight haul, and
enables the industry to operate las
though all mills were under one
ownership and control"
This Is the second FTC assault OH
the industry's pricing methods.
Action Taken in 1924.
In 1924 the commission took action
against the Pittsburgh plus" sys-
tenn, under which all steel was
priced as If delivered from Pitts
burgh. Though this "cease-and-
desist" order Is still in the courts,
the industry set up several addi-
tional cities to serve as "basing
points on which prices are quoted.
In any given area-Sometimes en-
comprising several States, the COM
mission said-the price quoted for a
given steel product Is the same from
4 mill next door as It would be from
q mill as much as 200 miles away.
This results, the FTC went on,
from "the fiction that eacn ship
nent Is made from one of limited
number Of common basing points
comparatively used and recognized
Another fiction" 1t was charged,
Is the basing of delivery charges on
all-rail shipments when frequently
water or truck carriers are used.
Elaborate Price Table Used.
Variations from standard products
are sold under an elaborate price
table Of extras" the commission
said adding that such charges from
time to time have been boosted
without relation to the extra cost
involved" On a number of prod |
ucts the extras amount to several
hundred per cent of the base price,
1t was stated
Industry-accepted rules prevent
any steel mill from "evading or devil
ating from" the accepted prices, the
FTC went on.
The complaint said the member
ship of the Iron and Steel Institute
includes "all the important steel
producers" in the country. and all
are made answerable in the case.
Corporations Listed. |
Following Is the list of corpora
tions named specifically as repre-
sentatives of the membership of the
institute (they were said to account
for about 80 per cent OF the coun-
try's total steel ingot producing ca
pacity):
United States Steel Corp. New
York, and eight of its subsidiaries,
American Steel & Wire Co., Cleve-
land; American Bridge Co., Car
nesie- Illinois Steel Corp, National
Tube Co. and American Sheet g.
Tin Plate Co., all of Pittsburgh;
Columbia Steel Co., San Francisco:
Tennessee Coal, Iron & Railroad
Co., Birmingham, Ala. and Virginia
Bridge Co., Roanoke. Va.
Bethlehem Steel Corp, New York,
and three of It's subsidiaries, Bethle-
hem, Pacific Coast Steel Corp, San
Francisco; Bethlehem Steel Co. Of
Pennsylvania, Bethlehem, Pa, and
Bethlehem Steel Co. of Delaware.
Republic Steel Corp, Cleveland,
and two of its subsidiaries: Trus-
con Steel Co., Cleveland, and Fretz-
Moon Tube Co., Butler, Pa.
Youngstown Sheet & Tube Co.,
and one of its subsidiaries. Youngs-
town Metal Products, both of
youngstown, Ohio.
National Steel Corp, Pittsburgh,
and two of its subsidiaries, Weir
ton Steel Co., Weirton, w. Va, and
Great Lakes Steel Corp, Detroit.
Inland Steel Co., Chicago, and
one of Its subsidiaries, Milcor Steel
Co., Milwaukee.
.Joues a. Iaughlin Steel Corp.