Show STEEL TRUST TAKES FREIGHT MONEY IT DOESN'T PAY Practice Is Admitted and Defended on Ground of Long Custom By GEORGE B. B WATERS Newspaper Enterprise Association j Staff Correspondent I WASHINGTON Dec 10 Has Has the ther r United States StatS Steel corporation a right to charge up to customers freight that I it doesn't have to pay I IThe The company admits it charges u uto ui up to its customers which is in due time passed on to the general public millions millions millions mil mil- lions of dollars as freight that it doesn't pay It claims this Is a trade I custom handed down for a half cen cen- I tury On the other hand steel fabricators I the manufacturers of steel products I I west of Chicago in m Minnesota 1 and particularly in Duluth and throughout through through- i out the South in the Birmingham Ala I vicinity claim that the charging charging- us oi CUI freight that is never paid is nothing I less than robbery and that if the custom custom cus cus- I cus-I tom of piracy is long established so much the more reason for tor smashing it WHAT IT DOES Heres Here's what the United States Steel corporation does It has a plant at Chicago When it sells a ton of ot steel in Chicago it charges what the steel would bring in an Pittsburg Then it adds more than 6 a ton for freight from Pron Pittsburg to Chicago But Dut as a matter matter matter mat mat- ter of or fact the steel is produced in I Chicago and isn't shipped from tram Pitts- Pitts burg It costs about the same to produce produce produce pro pro- duce steel in Chicago that it does in I Pittsburg Fabricators in Chicago and west west- I Ithe the men who buy plate and bar steel and manufacture it into plows and lawn mowers and stoves and hammers hammersand and saws saws declare declare this practice adds I to the prices they have to charge their customers They also charge they cannot cannot can can- not compete with fabricators in th the Pittsburg district because they have to pa pay freight twice whereas Pittsburg Pittsburg Pittsburg Pitts Pitts- I burg fabricators can ship into their territory by paying freight only once Hence they theo allege the practice is re restraint restraint restraint re- re of t trade In violation of the Clayton antitrust antirust act act BIRMINGHAM M PURCHASE PURCHASE More st steel el is pr produced at Duluth Minn than at Pittsburg and the United States Steel corporation adds about 10 10 freight it does not pay to each ton of steel it sells there During During During Dur Dur- ing the panic of I 1007 OJ the United States Steel corporation bought under special special special cial dispensation from President Roosevelt the big steel at Birmingham Ala Although it is cheaper cheapen to produce steel at Birmingham ham th than n at Pittsburg it charges the Pittsburg price for steel sold at Birmingham ingham and then ad adds fi freight eight from Pittsburg to the Birmingham destination destination destination destina destina- tion about 10 a ton The charges are filed med by the Western Western West West- em ern n Association of at Rolled Steel Consumers Consumers Con Con- sumers Superior Commercial duo state of Minnesota civic organizations lof of Duluth Southern Association 01 Os OsSteel Steel Fabricators and the Birmingham Civic association and Birmingham steel base bureau Letters and affidavits affi affi- davits aro sent in from fabricators allover all allover allover over the United States States' In a n. previous hearing the federal trade commission ruled that there was no action it could take that the steel corporation had a right to charge for its goods what it pleased But the fabricators by higher freight rates have renewed their fight for relief and the hearing has been re reopened re- re opened GARY DEFENDS SYSTEM At the previous hearing Judge Ga Gary 1 chairman of the United Slates States Steel Stee corporation n board told the commission commission commis commis- sion slon the Pittsburg basing plan stabilIzed stabilized I prices and that if it were abolished abolished abolished abol abol- it would bring distress to certain certain certain tain communities and disturb business business busi busi- ness conditions It operates like a prot protective cUve tariff John S S. S Miller representing the Western Association of ot Rolled Cons Consumers mers who wants o 0 Chicago freight base said the steel corporation was collecting a year freight from the Chicago district alone Birmingham Birmingham Bir Bir- mingham and Duluth also want freight bases Judge Gary says if it the federal trade commission decides against his steel corporation there will be the biggest gest lawsuit aws lt in the courts the world has ever known The steel power wont won't give e up this bounty until the highest court In the country co so ordains |