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defendants (1) to fix, maintain, determine or adhere to prices, discounts, charges, differentials, including freight rate factors or applicators, or terms or conditions of sale to be quoted or charged to or required of others in the purchase or sale of any stainless steel products; (2) to establish, enforce, provide or use any price list, extra list, basic price list or any classification of stainless steel products into base prices and extras, or activities in connection therewith; or (3) to use, enforce, or adhere to any formula or any designated means or source for determining prices, charges, discounts, classifications as base price or extras, or any other element or term, condition or differential, including freight rate factors or applicators, in connection with the sale or pricing of stainless steel products to others;

(b) Printing, publishing, circulating, quoting or using any prices, price lists, or extra lists, cash or courtesy discounts, transportation charges, differentials, including freight rate factors or applicators, or any other term or condition of sale to be quoted or charged to, or required of, others for or in connection with, the purchase or sale of stainless steel products pursuant to or resulting from any agreement or understanding, plan or program among or with any of the defendants;

(c) Conferring or consulting as to or discussing prices or extras to be quoted or charged to others for stainless steel products or any terms or conditions of sale thereof at any meeting of representatives of any of the defendants, or by any correspondence or communications among or with any of the defendants and from exchanging among or with any of the defendants any information as to prices, extras, or differentials including freight rate factors or applicators to be quoted or charged to, or required of, others for stainless steel products or any proposed terms or conditions for sale to others of such products;

(d) Preparing, circulating, exchanging or using so-called A. I.s, or Advance Information, or any other information concerning the prices and terms or conditions of sale which any defendant proposes or intends to quote on a bid to any prospective purchaser, or has quoted or charged to any purchaser on a bid, for any sale of stainless steel products, or to disclose to any competitor bids or quotations made to others for stainless steel products;

(e) Compiling, printing, publishing or circulating as defendant's list of prices for stainless steel products, or as defendant's list of extras, or as terms and conditions of sale, for stainless steel products any prices, extras, or terms or conditions of sale applicable to any type or grade of stainless steel or stainless steel products not now or hereafter being manufactured, sold or offered for sale by such defendant or any affiliated company;

(f) Publishing, printing, quoting or charging prices for stainless steel products on any basis other than (1) F. O. B. at the actual place of manufacture or origin of shipment of said products, or (2) on a basis, which at destination at not time shall be higher than the F. O. B. price at the actual place of manufacture or origin of shipment of said products plus actual transportation and other delivery charges, with every purchaser having an option to purchase F. O. B. at the actual place of manufacture or origin of the shipment of said products;

(g) Instituting or threatening to institute, or maintaining any suit, counterclaim or proceeding, judicial or administrative, for infringement of any free machining patent, alleged to have occurred prior to the date of the entry of this judgment.

V

Defendant, The Carpenter Steel Company, its officers, directors, agents, employees, successors and assigns, are hereby ordered and directed—

(a) To grant to any applicant upon each written request therefor a nonexclusive license to manufacture, use and sell under any one or more free machining patents without any condition or restriction whatsoever except (1) a reasonable and nondiscriminatory royalty may be charged and collected, and (2) where such royalty is charged, provision may be made for inspection of the books and records of the licensee by an independent auditor who may report to the defendant licensor only the amount of royalty due and payable and no other information;

(b) To grant to any applicant making written request therefor to the extent that the defendant The Carpenter Steel Company has or acquires the power to do so, a nonexclusive grant of immunity from suit under any foreign patents owned or controlled by defendant. The Carpenter Steel

Company, corresponding to free machining patents, to import into and sell or use and to have imported, sold or used in any country, products made in the United States, without any condition or restriction whatsoever, except that a reasonable and nondiscriminatory royalty may be charged and collected, and where such royalty is charged, provision may be made for inspection of the books and records of the licensee by an independent auditor who may report to the defendant licensor only the amount of royalty due and payable and no other information;

(c) To include in each license issued pursuant to this Section V, a provision under which the licensee may cancel such license any time after one year from the date of issuance of such license.

VI

Nothing in this judgment shall have any effect with respect to activities or operations, authorized or permitted by the Act of Congress of April 10, 1918, commonly called the Webb-Pomerene Act.

VII

Nothing contained herein shall be deemed to adjudicate the legality of any act or practice not prohibited herein, nor to bar or affect any proceeding under any law of the United States involving or relating to any act or practice not prohibited herein.

VIII

For the purpose of securing compliance with this judgment, authorized representatives of the Department of Justice shall, on written request of the Attorney General, or an Assistant Attorney General, be permitted, subject to any legally recognized privilege, (1) upon reasonable notice to any defendant corporation made to its principal office, reasonable access, during the office hours of such defendant, to all books, ledgers, accounts, correspondence, memoranda, and other records and documents in the possession or under the control of such defendant, relating to any matters contained in this judgment, and (2) subject to the reasonable convenience of the defendants and without restraint or interference from the defendants, to interview officers or employees of the defendants, who may have counsel present, regarding any such matters, and (3) upon any such request said defendants shall submit such reports with respect to the licensing of stainless-steel patents as may from time to time be appropriate for the purpose of enforcement of this judgment; Provided, however, that information obtained by the means permitted in this paragraph shall not be divulged by any representatives of the Department of Justice to any person other than a duly authorized representative of the Department of Justice except in the course of legal proceeding for the purpose of securing compliance with this judgment in which the United States is a party or as otherwise required by law.

IX

Jurisdiction of this cause is retained for the purpose of enabling any of the parties to this judgment to apply to the Court at any time for such further orders and directions as may be necessary or appropriate for the construction or carrying out of this judgment, for the modification of any of the provisions thereof or the enforcement of compliance therewith and for the punishment of violations thereof.

Dated October 25, 1948.

PHILIP FORMAN, Judge.

We consent to the signing and filing of the above final judgment. For the Plaintiff :

HERBERT A. BERGSON,

Assistant Attorney General.

ISAIAH MATLACK,

United States Attorney.

MANUEL M. GORMAN,

Special Assistant to the
Attorney General.

SIGMUND TIMBERG,

Special Assistant to the
Attorney General,

For the Defendants:

ALLEGHANY LUDLUM STEEL
CORP.

Carpenter, Gilmour & Dwyer,

By James D. Carpenter, Jr.,
Its Attorneys.
CARNEGIE-ILLINOIS STEEL CORP.,
Stryker, Tams & Horner,

By Josiah Stryker,

A Member of the Firm,

Its Attorneys.

For the Plaintiff-Continued

J. FRANCIS HAYDEN,

Special Assistant to the
Attorney General.

SAMUEL FLATOW,

Special Assistant to the
Attorney General.

96347-50-ser. 14, pt. 4b- -35

For the Defendants-Continued THE CARPENTER STEEL Co., Stryker, Tams & Horner,

By Josiah Stryker,

A Member of the Firm,
Its Attorneys.

CRUCIBLE STEEL CO. OF AMERICA,

By John A. Hartpence,

Its Attorney.

REPUBLIC STEEL CORP.,

Pitney, Hardin, Ward &

Brennan,

By Charles R. Hardin.

RUSTLESS IRON AND STEEL CORP.

By Thornton C. Land,

Its Attorney.

THE AMERICAN ROLLING MILL
Co.,

By Thornton C. Land

Its Attorney.

BETHLEHEM STEEL CO.,
Riker, Marsh & Scherer,
Riker, Emery & Danzig,

By Irving Riker,

A Member of the Firm,
Cravath, Swaine & Moore,

By Hoyt A. Moore,

A Member of the Firm,

Attorneys for defendant,

Bethlehem Steel Co.,

EASTERN STAINLESS STEEL CORP.

By John A. Hartpence,

Its Attorney.

SHARON STEEL CORP.,

Carpenter, Gilmour & Dwyer,

By James D. Carpenter, Jr.,
Its Attorneys.

FIRTH STERLING STEEL CO.,
Minton & Dinsmore,

By Arthur S. Lane,

A Member of the Firm,

Its Attorneys.

JESSOP STEEL Co.,

Carpenter, Gilmour & Dwyer, By James D. Carpenter, Jr.

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EXHIBIT S-224

[Released from the White House, March 28, 1942]

On March 20 the President received from the Attorney General, the Secretary of War the Secretary of the Navy, and Thurman Arnold the following signed memorandum:

"MARCH 20, 1942.

"DEAR MR. PRESIDENT: The undersigned have been considering for some time the problem presented by the fact that some of the pending court investigations, suits, and prosecutions under the antitrust statutes by the Department of Justice, if continued, will interfere with the production of war materials.

"In the present all-out effort to produce quickly and uninterruptedly a maximum amount of weapons of warfare, such court investigations, suits, and prosecutions unavoidably consume the time of executives and employees of those corporations which are engaged in war work. In those cases we believe that continuing such prosecutions at this time will be contrary to the national interest and security. It is, therefore, something which we seek to obviate as quickly as possible.

"On the other hand we all wish to make sure: (1) That no one who has committed a violation of law shall escape ultimate investigation and prosecution; (2) that no such person shall even now be permitted to postpone investigation or prosecution under a false pretext that his undivided time is necessary to the war effort-in other words that it must be preponderantly clear that the progress of the war effort is being impeded; and (3) that no one who has sought actually to defraud the Government shall obtain any postponement of investigation or prosecution in any event.

"Accordingly we have worked out the following procedure, subject to your approval.

"Each pending and future Federal court investigation, prosecution, or suit under the antitrust laws will be carefully studied and examined as soon as possible by the Attorney General, and the Secretary of War or the Secretary of the Navy respectively. If the Attorney General and the Secretary of War or the Secretary of the Navy come to the conclusion that the court investigation, prosecution, or suit will not seriously interfere with the all-out prosecution of he war, the Attorney General will proceed. If they agree that it will interfere, or if after study and examination they disagree, then, upon receipt of a letter from the Secretary of War or the Secretary of the Navy stating that in his opinion the investigation, suit, or prosecution will seriously interfere with the war effort, the Attorney General will abide by that decision and defer his activity in that particular matter, providing, however, that he shall have the right, in such event, to lay all the facts before the President, whose determination, of course, shall be final. In each case the action finally taken will be made public.

"The deferment or adjournment of the investigation, suit, or prosecution will not, however, mean the exoneration of the individual or corporation, or the discontinuance of the proceeding. As soon as it appears that it will no longer interfere with war production the Attorney General will proceed.

"To make sure that no one escapes by the running of the statute of limitations we shall request Congress to pass an appropriate extension of the statute. "Under no circumstances will there be any suspension or postponement of prosecution for any actual fraud committed against the Government. "We feel that this arrangement will adequately protect the public interest.

"Respectfully yours,

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On the same day, Mrch 20, the President in identical letters addressed to the Attorney General, the Secretary of War, and the Secretary of the Navy notified them of his approval of the procedure outlined in the above memorandum. The President's letter reads:

"MARCH 20, 1942.

"I approve of the procedure outlined in your memorandum to me dated March 20. 1942. If it is true that any substantial slowing up of war production is being occasioned by antitrust suits, prosecutions, or court investigations, then the war effort must come first and everything else must wait. For unless that effort is successful, the antitrust laws, as indeed all American institutions, will become quite academic.

"No one, of course, should be permitted to escape ultimate prosecution for any violation of law. I am sure, that the Departments of Justice, War, and Navy will all cooperate so that the needs of the war will not be hampered by these court investigations, suits, or prosecutions, but that at the same time the crisis of war will not be used as a means of avoiding just penalties for any wrongdoing. In other words, it must be made very clear that the war effort is being impeded. No right-minded person, or anyone who is conscious of what is at stake, should use the Nation's extremities as an excuse to violate any statute.

"Nor indeed should there be any deferment or adjournment of any court investigation, prosecution, or suit unless, after a study and examination with the Attorney General in each specific case, the Secretary of War or of the Navy is satisfied that the war effort will be jeopardized at this time unless such course s followed.

"I note from your memorandum that proper steps will be taken to avoid the running of the statute of limitations in any case; and that under no circumstances will there be any delay in the prosecution of acts involving actual fraud upon the Government.

"I also heartily approve your intention of making public each determination arrived at by you in accordance with your memorandum. The American people should be informed of each step in their war effort, excepting, of course, any nformation which may in any way help the enemy in his attempt to destroy us. While every precaution will be taken to prevent anyone from escaping prosention if he has violated the antitrust statutes, whether he is now engaged in war work or not, we must keep our eyes fixed now upon the one all-important Primary task-to produce more materials at a greater speed. In other words we shall give our attention to first things first.

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To: Mr. Ward Bowman, Subcommittee on Study of Monopoly Power.
From: Jesse M. Cutts, Chief, Branch of Industrial Prices.
Subject: Primary Market Price Indexes (1926=100) for Selected Steel Mill
Products by months from January 1940 through February 1950.

In accordance with your request when you visited this office March 30, I am attaching tables showing index numbers (1926=100) by months from January 1940 through February 1950 for the following four semifinished and eight finished steel mill products.

Semifinished steel mill products:

Wire rods

Sheet bars

Skelp

Rerolling billets

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