South Dakota and Nebraska towns. Our Capital Stock is $283,000. We mention this merely to show you that we are a small corporation. Our purchases from the American Steel & Wire Company amounts to an average of about fifteen carloads per year of woven wire, barb wire, steel fence posts and nails. Hoping the above will assist you in your investigation, LOONAN LUMBER COMPANY, MARLBORO WIRE GOODS COMPANY, INC., Hon. EMANUEL CELLER, Chairman Subcommittee on Study of Monopoly Power, House of Representatives, Washington, D. C. DEAR SIR: It has come to the writer's attention that your committee is investigating the activities of the United States Steel Corp. because of alleged monopolistic practices which have been detrimental to the steel industry and to users of steel. We have been doing business with American Steel & Wire Company, a subsidiary of United States Steel, for the past 25 or 30 years and have always found them to be very cooperative and helpful in assisting us in solving our various problems with steel wire and steel strip which we use as our raw material. We have, in the course of that period, had occasion to obtain a percentage of our requirements from other steel companies, both large and small, and have not found that the attitude of the U. S. Steel subsidiary was in any way different than that of other independent steel producers. Therefore, we would urge that very careful study be made of any testimony accusing U. S. Steel of being monopolistic as our experience has been very pleasant with them through the years and we have found that their trade practices has always been above reproach. They have always been willing to stand back of their product and to make any adjustments necessary to compensate for occasional faulty material or improper specifications should these have occurred through error or a mistake. Again, we would urge that every consideration be given before a definite accusation is made. Very truly yours, MARLBORO WIRE GOODS COMPANY, HOUSE OF REPRESENTATIVES, CEMENT GUN COMPANY, INC, United States Committee on Judiciary, Washington, D. C. GENTLEMEN: In connection with our studies of monopoly power, it is our desire to put ourselves on record relative to our findings in connection with the steel industry. Operating as we do throughout the entire United States, we are pleased to advise that we have received fair prices and fair treatment from suppliers from whom we have purchased steel in accordance with our requirements. We have not, even during the war period, experienced any tendency towards monopolization by the manufacturers, and while at times we anticipated delays and interferences in shipments, we were able in all cases to operate in accordance with schedule. Our findings at all times have been that the manufacturers and suppliers have been most cooperative. Yours very truly, BERLISS BEARING COMPANY, 14-18 Carmer Avenue, Belleville 9, N. J., April 11, 1950. HOUSE OF REPRESENTATIVES OF THE UNITED STATES, Committee on the Judiciary, Subcommittee on Study of Monopoly Power, Washington, D. C. GENTLEMEN: In connection with the proposed inquiry on monopolistic practices of the steel industry to take place beginning April 17, 1950, we are taking this opportunity to advise you that we have had very cordial relations with all the steel companies with whom we do business. Among the companies we deal with, the following are representative: Republic Steel Corporation The Stanley Works Sharon Steel Corporation Newman Crosby Steel Corporation. Trusting that this letter may benefit you in some way during your proceedings, we are Very truly yours, BERLISS BEARING COMPANY, COLUMBIA CABLE & ELECTRIC CORPORATION, 255 Chestnut Street, Brooklyn 8, N. Y., April 11, 1950. HOUSE OF REPRESENTATIVES OF THE UNITED STATES CONGRESS, Committee on the Judiciary, Subcommittee on Study of Monopoly Powers, GENTLEMEN: In conection with the investigation of the United States Steel Corporation, we thought it would be in order for us to submit the following information. We are a small company, employing less than 150 people, and have been doing business with the United States Steel Corporation for over thirty years. During this period we found their practice fair and above board and also have found them to be a reliable and satisfactory source of supply. We hope that this information will be helpful in your investigation. Respectfully yours, COLUMBIA CABLE & ELECTRIC CORP., S. L. ALLEN & CO., INC., Fifth Street and Glenwood Avenue, Phiadelphia 40, Pa., April 14, 1950. COMMITTEE ON THE JUDICIARY, Subcommittee on Study of Monopoly Power, House of Representatives of the United States, Washington, D. C. GENTLEMEN: As a user of Steel products for many years, we would like to convey to you and your Committee our thoughts on the hearings and investigations of the U. S. Steel Corporation; which, from reading the daily publications, we understand will start the week of April 17th. We have for many years been a customer of Carnegie-Illinois Steel Corporation, a subsidiary of U. S. Steel. The maintenance of adequate reserves of raw materials, transportation facilities as well as the extensive and costly manufacturing facilities required for adequately servicing the Steel needs of this County, require tremendous investments. It is our belief that U. S. Steel today has a smaller percentage of the capacity of the industry than it had prior to the recent war, and certainly much smaller than it had 25 or 30 years ago. Our relationship with the subsidiary companies, whose products we use, over the years has generally been most satisfactory. Most certainly we have not been able to obtain all of the Steel we have required at various times, however, the situation in this respect has been not greatly different from the supply situation of many other materials. Likewise, we feel that prices of Steel have not increased as much over the years as have prices of many other products. Very truly yours, S. L. ALLEN & CO., INC., M. J. SCAMMELL, Jr., Purchasing Agent. AMICK SHEET METAL WORKS, 2727 Sixth Avenue South, Seattle 4, Wash., April 13, 1950. HOUSE OF REPRESENTATIVES, UNITED STATES, Committee on the Judiciary, Subcommittee on Study of Monopoly Power, Washington, D. C. (Attn: Emanuel Celler, Chairman.) GENTLEMEN: As a small steel fabricator we would like to express our feelings regarding the question of monopolies and the United States Steel Corporation. As a purchaser of steel since 1908 we have found the U. S. Steel Corporation to be anything but monopolistic.. This has been proven to us time and time again by their actual price quotations as compared with those offered by what we might call small steel companies. During the last war and immediately thereafter when steel was so desperately short, there was never a time that the U. S. Steel Corporation ever tried to take advantage of us due to these conditions. Although we do not purchase all of our steel from the U. S. Steel Corporation we do feel that they are far from being monopolistic. Yours very truly, AMICK SHEET METAL WORKS, Summary of investments, profits, and rates of return on stockholders' investment for United States Steel Corp. and other1 leading steel companies, for each of the years 1936-48, after provision for Federal and other income taxes Includes: Bethlehem Steel Corp., Republic Steel Corp., Jones & Laughlin Steel Corp., Youngstown Sheet & Tube Co., National Steel Corp., Inland Steel Co., American Rolling Mill Co., Wheeling Steel Corp., Otis Steel Co. (absorbed by Jones & Laughlin Steel Corp. June 30, 1942), and Pittsburgh Steel Co. Average of investments at beginning and end of year for each company. 3 Net profit (or loss) after provisions for Federal and other income taxes. 4 Denotes loss. United States Steel Corp. less 3 railroads: 1947, 9.41 percent; 1948, 9.8 percent. Source: Prepared by the Federal Trade Commission. Summary of investments, profits, and rates of return on total investment (invested and borrowed capital) for United States Steel Corp. and other1 leading steel companies, for each of the years 1936–48, after provision for Federal and other income taxes 1 Includes: Bethlehem Steel Corp., Republic Steel Corp., Jones & Laughlin Steel Corp., Youngstown Sheet & Tube Co., National Steel Corp., Inland Steel Co., American Rolling Mill Co., Wheeling Steel Corp., Otis Steel Co. (absorbed by Jones & Laughlin Steel Corp. June 30, 1942), Pittsburgh Steel Co. Average of investments at beginning and end of year for each company. Net profit after provisions for Federal and other income taxes. • United States Steel Corp. less 3 railroads: 1947, 9.28 percent; 1948, 9.71 percent. Source: Prepared by the Federal Trade Commission. Investments, profits, and rates of return on stockholders' investment for each of the 10 leading steel companies, for the years 1947 and 1948, after provision for Federal and other income taxes Net profit, omitting capital and profit of 3 railroad subsidiaries: 1947, 9.41 percent; 1948, 9.80 percent. Source: Prepared by the Federal Trade Commission. Investment, profits, and rates of return on total investment (invested and borrowed capital) for each of the 10 leading steel companies, for the years 1947 and 1948, after provision for Federal and other income taxes 1 Average of investments at beginning and end of year. [Excerpt from the Iron Age, December 29, 1949, p. 62] One significant factor regarding strip has reared its head as a result of the recent changes. Cold-rolled strip extras were not changed and probably won't be in the immediate future. Therefore the converters who buy hot-rolled strip and make and sell cold-rolled strip are squeezed. The base price on hot-rolled was not raised but the $3 base differential between hot- and cold-rolled strip is not much of a margin in view of the higher extras on hot-rolled. |