WASHINGTON, July 31 (AP) —The Government charged the Armco Steel Corporation today with using illegal reciprocalpurchase arrangements with suppliers and customers.
The Middletown, Ohio, concern, which is the United States’ fifth‐largest steel producer, was named in a civil antitrust suit and accompanying consent order filed by the Justice Department in Federal District Court in Cincinnati.
Attorney General John N. Mitchell, who announced the actions in Washington, said the suit alleged that Armco had had reciprocal agreements with customers and suppliers since 1958. Such agreements are illegal under the Sherman Antitrust Act.
As a result of the alleged agreements, Armco's competi tors have been closed off from selling substantial quantities of goods and services to Armco's customers and rival suppliers have been prevented from selling goods and services to Arm co, the suit alleged.
Armco is the fourth large steel concern to be cited by the Justice Department for alleged reciprocal buying‐selling agreements. Similar suits have been filed within the last year against the United States Steel Corporation, the Illland Steel Company and the Republic Steel Corporation.
The proposed consent judgement submitted with the suit would prohibit for 10 years purchases by Armco on the condition that such purchases would he based on Armco's sales to the supplier. The judgment becomes final in 30 days unless the Government withdraws its agreement to its terms.