Indianapolis Times, Indianapolis, Marion County, 20 May 1938 — Page 2

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U.S. STEEL CORP. GOES TO COURT ON 1924 DISPUTE

‘Pittsburgh - Plus’ Prices, Outlawed 14 Years, Are Issue.

By HERBERT LITTLE

Times Special Writer

WASHINGTON, May 20.—An ob-

scure provision of a law enacted

60 davs ago has caused the U. S. Steel Corp. to go into court and attack a l4-vear-old Federal Trade Commission ruling forbidding the “Pittsburgh-plus” price system in the steel industry. The provision, part of the Wheel- | er-Lea act amending the Trade Commission Act, makes final and binding all previous unchallenged orders of the commission. It also | provides a $5000 penalty for each | violation of any such order. The provision becomes effective today. U. S. Steel and five sub- | sidiaries cot under the wire by a petition in the third U. S. i Court of Appeals at Philadelphia asking that the order be modified or set aside. No Challenge at First U. S. Steel did not challenge the ruling in 1924, nor did the Commission go to court for an enforcement order, because the steel industry substituted a “multiple basing point” system of prices for the condemned Pittsburgh =~ plus fogmula The Commisison has never formally proceeded against the multiple svstem as a violation of rder, although under the newer tem prices are generally uniform i “phantom freight” charges are 1 levied ittsburgh-plus” all prices ‘here were the price at the 11 plus the freight from Pittsburgh to delivery point—no matter the steel was made in Pitts-

no matter where it was delivered Under the multiple system, instead of the single base, various

s are designated as basing points

Case May Be Reopened

Under the provisions of the Trade Commission Act, the Government and the steel corporation will now fight out in court their battle of 14 vears ago, on the evidence taken then, and probably without reference to the many later developments in the steel industry. In 1924, for instance, not a single rip mill—that wizardlike machine r the automatic processing of steel existed in the steel industry. Now

e are 27

st fo there ere is a possibility, however, t} either side will ask the Court or an order directing the Commisto take new testimony. This would reopen the whole proceeding and virtually require a complete new record of evidence In any event, no Court hearing is likely for six months or a year.

Yor Tl nat

WIFE JAILS SPOUSE FOR DRUNKENNESS

CLEVELAND, May 20 (U. P.).— Mrs. Marv Rashke was on hand today when her husband, Edward, 17, was arraigned in Police ‘Court or intoxication She asked permission of Judge Joseph N. Ackerman to pronounce | sentence. “I want to straighten you out.” she said, ignoring her husband's | pleas for leniency. “Thirty days.”

OHIO RADIO FACTORY DOUBLES PAYROLL

SANDUSKY, O.,, May 20 (U. P.).)

—There was no recession at the Simplex Radio Co. plant today. Company officials announced that their pavroll would be doubled immediately as the result of orders which they said would keep the factory busy until March 1, 1939. They said a roster of 225 employees would be increased to 450. The company manufactures radios for automobiles and mail-order houses.

CLIENT FOUND DEAD BY INSURANCE MAN

When Benjamin Green of 805 N. Keystone Ave. insurance collector, went to the room of John Ambrose, 46, at 1006 E. Market St. to collect a premium, he found his client dead. A few moments before Mr. Green arrived, Mr. Ambrose had complained of feeling ill and told a fellow roomer he was going to lie down for a few moments, police were told.

315.1719 E. WASHINGTON ST

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