Luria Brothers and Company, Inc

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IN THE MATTER OF LURIA BROTHERS AND COMPANY, INC., ET AL.

SET ASIDE ORDER IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT AND SEC. 7 OF THE CLAYTON ACT Docket 6156. Order, Feb. 13, 1963-Set Aside Order, March, 1985 In response to a petition filed by Luria Brothers and Company, Inc. ("Luria ), the Commission, on February 1, 1985, reopened the proceedings in Docket No. 6156 and set aside the order issued on February 13, 1963, 65 F. C. 243, as it applied to Luria, on ground that it no longer served any procompetitive purpose and may impede the company s ability to compete effectively for the business of scrap consumers that desire exclusive supply arrangements. l105 F. C. 192) However the commission determined that this action would only provide partial relief as long as the corresponding prohibitions against the purchasers of iron and steel scrap remained in effect. It therefore issued to respondent mills stil in operation orders to show cause why the proceedings in Docket 6156 should not be reopened to set aside Paragraph 2(a), which prohibited the mills from purchasing scrap exclusively from Luria, and giving the firm preferential treatment as a broker or supplier of scrap. Having received no objections to the proposed action, the Commission has reopcned the proceeding and set aside Paragraph 2(a) holding that in view of its set aside order as it applied to Luria, setting aside Paragraph 2(a) of the 1963 order is in the public interest.

ORDER SETTING ASIDE PARAGRAPH 2(a) OF THE ORDER ISSUED FEBRUARY 13, 196:- In response to a petition fied by Luria Brothers and Company, Inc. Luria ), the Federal Trade Commission on February 1, 1985, reopened the proceedings in Docket No. 6) 56 and set aside the order as it applied to respondent Luria. (105 F. C. 192) In doing so, the commission concluded that the order no longer serves any procompetitive purpose and that it may impede unnecessarily Luria s ability to compete effectively for the business of scrap consumers that desire exclusive supply arrangements. However, the Commission believes that setting aside the order as to Luria alone would provide only partial relief as long as order Paragraph 2(a)'s corresponding prohibitions against scrap purchasers remain in effect. Paragraph 2(a) prohibits the respondent mills from purchasing all or almost all of any plant' requirement of scrap iron and steel from Luria, and from giving Luria preferential status or favored treatment as a broker or supplier of iron and steel scrap.

On February 1, 1985, the Commission, pursuant to Section 3.72 of its Rules of Practice and Procedure, 16 C. R. 3. 72, issued to the ,,VHlft nnVUtEl\:: AND CO., INC., ET AI.. 247 246 Set Aside Order spondent mills stil in operation I orders to show cause why the proceedings in Docket No. 6156 should not be reopened to set aside Paragraph 2(a) of the order. Respondent mils were provided an opportunity to object to the proposed action, and having failed to do , are now deemed to have consented to such action. In view of the Commission s set aside ofthe order as it applied to Luria, the Commission believes that the set aside of Paragraph 2(a) ofthe order, barring the respondent mills from using Luria as their exclusive scrap broker or supplier, is in the public interest.

Accordingly, It is hereby ordered That this matter be, and it hereby is, reopened and that Paragraph 2(a) of the order shall be set aside as of the effective date of this order.

Commissioner Bailey concurs in result.

I The Commission issued show ca\1se orders to the following respondent mills: Bethlehom Steel Corporation; United States St.eeJ Corporation; Phoenix Steel Corporation; Empire-Det.roit Steel Division, Cyclops Corporation; 111' Grinnell Corporate.ion; Standard Steel Division, Titanium Metals Corporation; McLouth Steel Corporation; Edgewater Corporate.ion; Ruryrus-Erie Company; Weirton Steel Corporation; CF & I Steel Corporation and National Steel Corporation. Respondent mil formorly known as the Granite City Steel Company is now a division of the National Steej Corporation 248 FEDERAL TRADE COMMISSION DECISlpNS Modifying Order 105 F.