STEAMER LINES ON LONG ISLAND Sound 50, I. C. C., 634. (July 10, 1918.) Petition of the New York, New Haven & Hartford Railway Company, filed pursuant to section 5 of the act to regulate commerce as amended by the Panama Canal act, for permission to continue its operation of certain services by water on Long Island Sound and elsewhere, granted, as under the present circumstances and conditions it is found that the services are being operated in the interest of the public and are of advantage to the commerce and convenience of the people, and that continued operation by the petitioner will neither prevent, exclude, nor reduce competition on the route by water under consideration. Action in the future dependent upon circumstances and conditions.

Granted, subject to further order of the commission.

CONTROL OF WATER CARRIERS BY RAILROAD CARRIERS, 51 I. C. C., 436. (October 24, 1918.)

Application of the Grand Trunk Railway Company of Canada, under the provisions of section 5 of the act to regulate commerce as amended by the Panama Canal act, to continue its ownership and operation of certain car ferryboats plying on the Detroit River.

Granted, subject to further order of the commission.

APPLICATION OF UNITED STATES STEEL PRODUCTS, 57 I. C. C., 513. (May 11, 1920.) The ownership by the United States Steel Corporation of the stock of both the United States Steel Products Company and the several applicant rail carriers held to constitute an interest within the meaning of section 5 of the interstate commerce act by said rail lines in water lines owned and operated by the United States Steel Products Company.

Under present conditions and conditions that seem probable in the near future whatever competition there may be between the applicant rail carriers and the steamer lines of the United States Steel Products Company, operating between ports on the eastern coast of the United States and ports on the western coasts of North and South America, through the Panama Canal, found unsubstantial and merely nominal. Granted. No order entered.

S. P. Co. OWNERSHIP OF ATLANTIC STEAMSHIP LINES, 58 I. C. C., 67. (June 4, 1920.) Application of the Southern Pacific Company, under the provisions of section 5 of the act to regulate commerce as amended by the Panama Canal act, for a modification of the order heretofore entered in this proceeding to permit operation of its Atlantic Steamship lines in either regular or irregular service between New York, N. Y., and Port Arthur, Sabine Pass, Texas City, Freeport, Houston, Beaumont, and Orange, Tex., and Letween Portland, Me., Boston, Fall River, and New Bedford, Mass., Providence, R. I., Philadelphia, Pa., and Baltimore, Md., on the one hand, and New Orleans, La., Galveston, Tex., and other Gulf ports named, on the other.

Such service is not in the interest of the public and of advantage to the convenience and commerce of the people, and will exclude or prevent competition on the routes by water.

Denied.

S. P. Co. OWNERSHIP OF ATLANTIC STEAMSHIP LINES, 77 I. C. C., 124. (January 9, 1923.)

Same application as considered in 58 I. C. C., 67.

Found that such service, except from Philadelphia to Houston, is in the interest of the public and of advantage to the convenience and commerce of the people, and will neither exclude, prevent, nor reduce competition on the routes by water under consideration.

Granted, subject to the further order or orders of the commission.

4th Session.

CALCIUM ARSENATE INDUSTRY.

No. 345.

LETTER FROM THE ACTING CHAIRMAN OF THE FEDERAL TRADE COMMISSION TRANSMITTING IN RESPONSE TO A SENATE RESOLUTION OF JANUARY 23, 1923, A PRELIMINARY REPORT RELATIVE TO THE CALCIUM ARSENATE INDUSTRY.

MARCH 3, 1923.-Referred to the Committee on Agriculture and Forestry and ordered to be printed.

FEDERAL TRADE COMMISSION,
Washington, March 3, 1923.

To the PRESIDENT OF THE UNITED STATES SENATE.

SIR: Pursuant to Senate Resolution 417, Sixty-seventh Congress, fourth session, adopted January 23, 1923, the Federal Trade Commission submits herewith a preliminary report, setting forth certain facts regarding the calcium arsenate industry. While the data submitted are not conclusive, it is thought the information at hand is of public interest, especially to the user of the product.

The prices of calcium arsenate, which in October, 1922, ranged from 10 to 12 cents per pound, increased rapidly during the next 30 to 60 days, and in February, 1923, had reached a range of 18 to 19 cents. Although the facts show that efforts were made to harmonize the various interests by the organization of an association, it does not appear that it is now in operation. A number of insecticide manufacturers had been members of, but in 1920 had severed their connection with, the Armstrong Bureau of Related Industries of Chicago, Ill., reference to which bureau is contained in correspondence quoted in this report. The question of joining this bureau was again suggested by some of the manufacturers in 1921, but the idea seems to have been abandoned after the decision of the United States Supreme Court in the Harwood lumber case. The correspondence examined during this inquiry also shows that price lists were exchanged by certain of the important manufacturers, but the evidence thus far obtained does not show that the prices set forth were fixed by agree

ment.

The commission is continuing and extending the work of its inquiry, and, should additional facts of interest be developed, further report will be made to the Senate, or, if evidence is obtained indicating a violation of the laws enforcible by the commission, appropriate action will be taken.

By direction of the commission.

S D-67-4-vol 12-81

HUSTON THOMPSON,
Acting Chairman.

PRELIMINARY REPORT OF THE FEDERAL TRADE COMMISSION ON THE CALCIUM ARSENATE INDUSTRY.

SECTION 1.-ORIGIN OF THE INVESTIGATION.

This inquiry into the calcium arsenate industry was made by the commission pursuant to a resolution passed by the Senate of the United States on January 23, 1923, reading as follows:

Resolved, That the Federal Trade Commission be, and it is hereby, directed to investigate and report the facts relating to any alleged violations of the antitrust acts by manufacturers of or dealers in calcium arsenate.

During the month of January, 1923, Members of the Senate and also the Federal Trade Commission received numerous complaints with regard to the high prices being charged for calcium arsenate in the Southern States, where this chemical has been found to be a valuable agent in combating the boll weevil. These complaints were transmitted for the most part by secretaries of various chambers of commerce and boards of trade.

In a letter dated January 13, 1923, the vice president of a southern merchandising corporation wrote as follows:

From the manner in which this item (calcium arsenate) has advanced, it seems that the boll weevil has brought another obstacle to the farmer, as the price of calcium arsenate, which will certainly help in the control of the weevil, is being placed in prohibitive class in price to the farmer.

Another letter, dated January 15, 1923, from the president of a southern chamber of commerce, complained as follows:

The cotton farmers of the South are confronted with a most serious problem which involves the price of calcium arsenate used for poisoning the boll weevil of cotton. The use of this poison in fighting the boll weevil of cotton has increased the manufacture of this article so many times over what its use was a few years ago that it would seem reasonable that the cost of manufacturing should be materially reduced. In spite of this reasonable expectation, however, it seems that the manufacturers have pooled their interests to increase the price.

For that reason we respectfully petition your honorable body to make a careful investigation of the industry of manufacturing calcium arsenate, as to source of supply of materials and cost of manufacturing, as well as cost of raw materials.

The secretary of another chamber of commerce wrote as follows, in a letter dated January 13, 1923:

Although we are naturally obliged to take the statement at its face value, we are given to understand that the manufacturers of calcium arsenate have placed an unreasonable price upon their commodity. We are further given to understand that their action is of a "hold-up" nature, due to the fact that the farmer of dire necessity needs this commodity to fight the boll weevil.

We respectfully request that, should you find this accusation correct, you take some steps toward the correction of this evil, and if we can be of any assistance please count on our unlimited cooperation.

In writing under date of January 15, 1923, of calcium arsenate, another secretary of a southern chamber of commerce said:

It is well known that this is the only remedy that offers the least hope to the southern cotton farmer of success in raising cotton. We believe that the dealers in this product are entitled to a living profit, but we also think that it would be a shame to allow these people to rob the cotton farmer when he is already in a life and death struggle; and he does not yet know how this struggle will terminate.

In behalf of the cotton farmers of this section of the country, we ask you to make an investigation of this matter, and if possible see that the cotton farmer gets a square deal in this connection.

The above excerpts are merely illustrative of the character of the letters received by the commission. Probably a greater number of them was received by Members of Congress than by the commission, and the result was the Senate resolution quoted above, directing the commission to make an inquiry into the calcium arsenate situation. Another point of view, contemporaneous with those taken from various letters and quoted above, is found in the following article which appeared in the Paint, Oil, and Chemical Review as of January 17, 1923:

Those paint manufacturers who are interested in the manufacture of insecticides are in a trying position as a result of the apparent world shortage of arsenic, particularly in the form of calcium arsenate, which is used largely in the South in fighting the boll weevil. The importance of combatting this insect so destructive to the cotton crop has been impressed on the southern planters as never before, and the losses to the crop in the past seven years are estimated at over $1,000,000,000. O. A. Hasse, vice president of the Glidden Co., states that manufacturers of insecticides generally are unable to secure a sufficient supply to meet the sudden demand for calcium arsenate, although every manufacturer is doing his utmost to speed production and secure every available pound of arsenate and convert it into the finished product. As to prices, he says in part:

"There has been no tendency that I have been able to note of any fixation of exorbitant prices by insecticide manufacturers as a result of the arsenic shortage. The prices current for all arsenical poisons to-day are, as nearly as can be determined, consistent with the high cost of raw materials and a very moderate rate of profit."

The tendency, of course, will be to reduce the output in other forms of arsenic compounds and meet the tremendous needs of the cotton producers. It is hoped that favorable tariff conditions may increase the importations of the raw material.

The Senate resolution quoted in the opening of this section was transmitted to the commission on January 24, 1923, and work on the inquiry as directed was at once instituted.

SECTION 2.-SCOPE OF THE INQUIRY.

In order to submit a report to the Senate in reply to its resolution of January 23, 1923, before the close of the present session of Congress, it was necessary for the commission to cover a considerable field of inquiry and prepare a report in a limited period of time. The report now being submitted is, therefore, preliminary in its nature, and the commission is continuing and extending the work which it has already done on this subject with a view to issuing a supplementary report should information be developed which will throw important light upon the situation.

On account of the apparent urgency in submitting its conclusions as quickly as possible, the commission has covered in its field work only those phases of the subject which seemed likely the most readily to yield information as to whether or not the antitrust laws have been violated in the manufacture and distribution of calcium arsenate. It is considered pertinent, however, to present a brief general description of the source and production of arsenic (the chief chemical in the manufacture of calcium arsenate), together with similar data relative to calcium arsenate itself, in order that a better understanding may be had of the other information which has been developed in the inquiry.

A careful review of the correspondence of a majority of the manufacturers of calcium arsenate was made with a view to determining whether or not there has been combined effort to manipulate the price of the chemical under consideration in violation of the antitrust acts