OCR Text |
Show I Following U. S. Ruling-Geneva Ruling-Geneva Steel Plant Goes To U. S. Steel All legal problems relative to the sale of Geneva steel plant were cleared Monday when U. S. Attorney General Tom C. Clark rendered an opinion that the sale did not violate the antitrust anti-trust laws and this greatest of all Utah industrial plant will be officially released to U. S. Steel Corporation in the near future on their bid of $47,500,000. In its bid, U. S. Steel agreed to spend not less than $18,600,000 for conversion at Geneva and $25,000,000 for cold rolling and tin plate facilities at Pittsburg, Cal., making a total investment of its own funds of $91,100,000. In his explanation of the decision de-cision Mr. Clark made the following fol-lowing seven point statement: "1. It will assure the most effective ef-fective use of the Geneva steel plant for war purposes and common com-mon defense. The bid of U. S. Steel proposes to preserve for future emergencies, the original facilities of the Geneva steel -plant in good state of repair for a period of not less than five years. "2. It will stimulate full employment em-ployment including employment of war veterans. Employment will be provided at the Geneva steel plant proper, the Geneva coal mine, the quarry, and at the proposed new cold reduction facilities fa-cilities at Pittsburg, Cal., for approximately ap-proximately 5000 persons when the Geneva steel plant rate of production is 600,000 tons of rolled roll-ed steel products annually. "3. It will facilitate the transition tran-sition of the Geneva steel plant from wartime to peacetime production. pro-duction. "4. It will encourage and foster fos-ter postwar employment opportunities oppor-tunities not only in the Geneva steel plant but also in steel-consuming steel-consuming industries in the west.. "5. It will promote production, employment of labor and utilization utiliza-tion of the productive capacity and the natural resources (especially (espec-ially iron ore and coal) and the agricultural resources (through steel used in agricultural machinery) ma-chinery) of the country. " "6. It will foster the development develop-ment in the west of new independent inde-pendent enterprise. The production produc-tion of steel at the Geneva steel plant should serve to develop additional ad-ditional consuming markets for steel products in the territory naturally served by the plant, particularly in this postwar period per-iod when many companies are reported to be considering the location lo-cation of additional steel-consuming facilities. One of the most important factors from the standpoint of consumers of steel i is to have an assured source of ! supply. The operation of the Geneva plant as a part of the integrated operations of U. S. Steel should tend to foster the location of steel consuming manufacturing man-ufacturing plants in the western states. "7. It will obtain for the government, gov-ernment, as nearly as possible, a fair value of the Geneva steel plant upon its disposal, as pro- i vided in the statement on 'Pricing 'Pric-ing of Plants,' shown in part 111, I section (c) of the report to congress con-gress by the surplus property administration ad-ministration under date of Oct. 8, 1945, on disposal of government govern-ment iron and steel plants and facilities." ; The news of the Attorney's opinion and the ultimate acquirement ac-quirement of the Geneva plant by U. S. Steel met with general approval of Utah county and State of Utah people and officials and the prediction that this area is to become one of the west's industrial centers was felt to have become a reality now. It will mean the location of more industry in the state, a general building boom and greatest of all a home market for our farmers and other producers of every kind. The conversion of the Geneva steel plant and re-employment of former employees is expected to follow Immediately on acquirement ac-quirement of the plant by u. S. Steel. |