TABLE II.-List of operating railroads controlled by industries, year ended Dec. 31, 1948-Continued Not reported. Pressed Steel Car Co., Inc. Pullman Finance & Properties Co. St. Paul Iron Mining Co., which is owned by Republic Steel Corp. Sioux City Stock Yards Co. Bethlehem Steel Corp. Union Stock Yards of Omaha, Ltd. Peabody Coal Co. Bethlehem Steel Corp. Chicago Stock Yard Co. United States Steel Corp. Alan Wood Steel Co. Pennsylvania Salt Mfg. Co. 12 Wyandotte Chemical Corp. 7 United States Steel Corp. 46 United Transit Co. Anaconda Copper Mining Co. 39 Chicago Tunnel Terminal Corp. Do. 16 The Denver Tramway Corp. 10 46 The Eagle-Picher Co. Summer & Co. 5 Abel Construction Co. Portland Transit Co. The West Penn Electric Co. Union Electric Co. of Missouri. 53 18 10 14 Saltair Beach Co. and Saltair Investment Corp. 10 Sand Springs Home. 3 The Pennroad Corp. Mileage consists of 8.75 miles of sidings and turn-outs. *Subject to jurisdiction of ICC but are engaged in interstate commerce only to a slight extent. Since May 15, 1948, operations have consisted of trackless trolleys and motor busses. Mr. EUGENE G. GRACE, EXHIBIT S-332 MAY 31, 1950. President, Bethlehem Steel Corp., Bethlehem, Pa. DEAR MR. GRACE: During the recent hearings of the Subcommittee on Study of Monopoly Power, which were concerned with the structure and functioning of the steel industry, one of the witnesses which the subcommittee heard was Mr. Samuel Wasserman, president, American Pipe & Equipment Co., Inc., Baltimore, Md. Mr. Wasserman's company is a small wholesaler of steel pipe and related items in the Baltimore area. According to his testimony before the subcommittee, he endeavored to purchase steel pipe products from the Bethlehem Steel Corp., when his previous supplier, the Mercer Tube Co., withdrew from the Baltimore market. According to his own words, “Bethlehem refused to sell steel pipe products to my company." It is quite apparent that unless this small corporation obtains a supply of material, it will be forced to discontinue business, thus eliminating another small and independent competitor in the wholesaling of steel products. At the close of Mr. Wasserman's testimony, Mr. Lane, a Congressman from Massachusetts and a member of the subcommittee, expressed the wish that "some of the representatives of the steel companies explain this situation and straighten it out in our minds to find out why this little-business man can't make a living?" It is pursuant to this request that I am calling this matter to your attention in the hope that the demise of the American Pipe & Equipment Co., Inc., may in some manner be prevented. DEAR MR. CELLER: Mr. Grace asked me to reply to your letter of May 31, 1950, in which you inquire about the American Pipe & Equipment Co., Inc., of Baltimore, Md. Representatives of that company have talked to us about their pipe requirements on a number of occasions and we have frankly discussed our situation with them in some detail. Since the war the demand for steel pipe has been abnormally high. Requests for the products of our pipe mill have exceeded our capacity. Consequently, we have used up all of our available pipe tonnage and we have not been in a position to supply the requirements of the American Pipe & Equipment Co., Inc., who never purchased any pipe from us. We understand that Mr. Wasserman in his testimony before your committee stated that Bethlehem refused to sell steel pipe products to his company. We suggest it would be more accurate to say that our company was unable to take care of the requirements of Mr. Wasserman's company because the fact is that we have had no available pipe to sell it. We regret that up to the present we have not been in a position to offer the American Pipe & Equipment Co., Inc., any assistance. Very truly yours, E. A. BUXTON, Manager of Sales. EXHIBIT S-333 Estimated per ton assembly costs in production of basic pig iron, 1934 NOTE.-Material ratios used: 1.94 gross tons of ore per gross ton of pig iron, except for Birmingham for which a ratio of 2.5 gross tons was used; 1.54 net tons of coal (producing 1 ton net coke, i. e., 65 percent yield from coal) per gross ton of pig iron, except for Birmingham for which a ratio of 2.07 net tons was used; 0.45 gross tons of limestone per gross ton of pig iron, except for Birmingham for which no limestone ratio was used (Birmingham was generally self-fluxing). Source: Special computations made for bureau of business research, University of Pittsburgh, by H. R. Moorehouse, of Arthur G. McKee & Co., Cleveland, Ohio. Based on rail, rail-water, and water transportation according to typical routes over which the materials are transported to their districts. Costs are based on a 100-percent ore burden of 51.5-percent iron content. Table is from C. R. Daugherty, M. G. de Chazcau, and S. S. Stratton, the Economies of the Iron and Steel Industry (New York, McGraw-Hill, 1937), vol. I, p. 378. EXHIBIT S-334 Assembly cost of raw materials for production of 1 long ton of basic pig iron and 1 long ton of finished steel at different centers, 19391 In deriving these assembly costs, blast-furnace practices shown in table 26 for Youngstown were used for Pittsburgh, Cleveland, Buffalo, Weirton-Steubenville, Ashland, Hamilton, and St. Louis; those for Chicago-Gary were used for Detroit and Duluth; those for eastern New York were used for Bethlehem and Sparrows Point; and those for Provo were used for Pueblo and San Bernardino. Following are the proportions of iron ore and coal from the different sources which were used. They are those used by Marion Worthing in Pittsburgh Business Review, Jan. 31, 1938, p. 23, and they are also Found in Beaver and Mahoning Rivers, Pa. and Ohio, hearings before the Committee on Rivers and Harbors, House of Representatives, 77th Cong., 1st sess., 1941, pp. 47-48: Iron ore: 75 percent Minnesota, 25 percent of Michigan (100 percent direct ore at points on lakes; at inland pants, 80 percent direct ore and 20 percent dock ore). Coal: Pittsburgh and Weirton-Steubenville, 100 percent western Pennsylvania by barge. Chicago, 70 percent eastern Kentucky and West Virginia, 30 percent Pocahontas 50 percent rail-lake; 50 percent al-rail for coking; southern Illinois for other coal. Cleveland, 80 percent Pittsburgh field by barge-rail, 20 percent Pocahontas, all-rail. Detroit, 80 percent eastern Kentucky and West Virginia, 20 percent Pocahontas-80 percent rail-water, 20 percent all-rail. Buffalo, 60 percent Pittsburgh and central Pennsylvania, rail-water; 20 percent Pittsburgh field, all-rail; 20 percent Pocahontas, rail-water; Youngstown, 8 percent western Pennsylvania, barge-rail; 15 percent Pocahontas, all-rail. Duluth, same as Chicago, except none from southern Illinois. Other points obtained materials from the cheapest available source. This figure applies at Middletown, which is 12 miles from Hamilton. Hamilton does not make steel and Middletown does not make pig iron. Negligible. Source: P. 124, Board of Investigation and Research, The Economics of Iron and Steel Transportation Sen. Doc. 80, 79th Cong., 1st sess. (Washington, 1945). |