"Cease and Desist"

Said the Federal Trade Commission to the U. S. Steel Corporation: "Cease and desist from your 'Pittsburgh Plus.' " This after deliberations which began in June at the request of the Western Association of Rolled Steel Consumers, backed up by 32 States.

"Pittsburgh Plus" is descriptive of a U. S. Steel Corporation price-fixing practice. The Corporation's policy is to sell plates, shapes and bars on a delivered basis, irrespective of the place of manufacture, and values them all as if they were manufactured at Pitts- burgh. This uniform valuation forms the Pittsburgh base price. The Cor- poration does not sell at the base-price. It quotes prices to which have been added the freight rate from Pittsburgh to the point of consumption. This is "Pittsburgh Plus." The mill delivering an order invoices its customer at "Pittsburgh Plus," minus the actual freight to the point of consumption.

The Order. The Commission's order directed the Corporation to cease and desist from quoting for sale or selling in interstate commerce plates, shapes, bars, or their fabrications (wire, etc.) 1) at Pittsburgh Plus prices; 2) at prices based on any point other than that where the products are manufactured or shipped; 3) at discriminatory prices designed to lessen competition. The Commission referred to the freight charge involved by "Pittsburgh Plus" as "imaginary," indi- cated the hardships upon consumers as resultant from the fact that the Corporation produces nearly 50% of the American rolled steel.

Significance. Theoretically, the importance of the order would seem to be a likely shift of the center of the steel industry. With Pittsburgh Plus abolished, many manufacturers would immediately build factories near other steel-producing centres, now free to market at reduced prices. Gary, Ind., particularly, has watched the Pittsburgh Plus fight with intense interest. Business circles, however, attached little significance to the Commission's action in its immediate effect upon the steel business.

Outcome. The Federal Trade Commission's dictum is by no means final. That body, created in 1914, is subordinate in its interpretations of the law to the U. S. Circuit Court of Appeals, which may enforce, set aside, or modify orders of the Commission. Still higher is the U. S. Supreme Court.