Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-06-15
FARRELL TO BE SUMMONED
President of Steel Trust to Be Called
to Explain Some Things.
CARNEGIE POLICY IS DISCUSSED
Pools Are Inquired Into and GsyIey
Says None Exist, So Far as
He Knows.

WASHINGTON. June Undetermined to
discover why the United States Steel cor
poration could sell steel rails abroad
cheaper than at home the steel trust
investigating committee OF the house to-
day practically anaonneed its intention OF
summonfng James a. Earrsli. president Of
the corporation. to explain the situation,
James Gayley. former vice president Of
the corporation acknowledged he could
not. tell and referred the committee to
Mr.. Farrell. who for years had been in
charge Of the export business Of the con-
Germ.
us President Farrell in this country
now, or abroad?" asked Mr.. Bartlett.
Il think he is here now" was the reply.
"Mr Farrell, interrupted Mr.. Lndaboy,
counsel for the Steel corporation, is at the
service Of this committee and will come
before you whenever you desire him"
Il simply wanted to learn where to find
him." said Mr., Bartlett
Mr. Gayley was Questioned by Chairman
Stanley as TO the methods OF shipping raw
materials and for details concerning the
operation of the Steel corporation railroad
and steamship companies and their rela-
tions with other railroads
He was asked to explain prices of rails
quoted to the Canadian Pacific railroadi
prices lower since 1901 than the uniform
domestic rate of SOS ton. Mr.. Gayley
again referred TO President Farrell
GayIey Tells of steel War.
Mr. Gayley described at length the steel
war which occurred in 1897 and 1889. dur
ing which the steel rail prices varied. drop
ping as low as $l7 ton.
did not that steel war In 's7-'e9 bring
about the organization of the United States
Steel corporation" Mr.. Bartlett asked.
| II do not think It had anything TO dc
with IL. II may have had an effect on tn,
formation of the Federal Steel company
organized just before the steel corpora
| ton was formed"
do you know whether or not there il
an agreement now between steel rail- manu-
faeturers whereby the territory is par
celled oute'
81 do not. n such existed. Mr. Farrell
could tell YOU
The carnegie Policy.
Andrew carnegie's policy in the oonduo
Of the steel business before he sold to th'
steel corporation, was made the basis foi
a line OF inquiry.
Mr.. stanley asked Mr.. Gayley for an e.
| innate OF the amount Of money expende,
SIS business between 1883 and the formation
OF the steel corporation In 1901. Mr.. Gay
IAey said he could not give an estimate, bu
declared the policy OF the Carnegie com
pahy always was one Of expansion
Pools before 1904 were also inquired int,
and Mr. Gayley declared again that n,
such pools among steel men existed toda!
/ hat he knew of AS for details OF tn
ia pools. he referred the committee I,
| Mr., Sohwab and Mr Gates.
Mr.. Stanley pressed the inquiry into tn
cd agreements, seeking TO discover hoy
hey had been superseded
II required vigilance mutual agree
ments. the nfilotion og penalties TO main
tain steel prices among independent manu-
facturtrs before the organization OF IN,
Steel corporation, did Il notg' he asked.
THE Old Rsreements often were broken,
Mr. GaylcV replied. "and In those day
Price cuttins caHls a. retaliation for som
faacicd wrong
have there been no fauoicd wrongs and N
efforts % the part OF mFnufacturers 4
redurs prtossT'
There have not was the emphatic rs
ply. -NauusacturcFs OF steel today hav
bean brought more elosely together. The.
are gsttiug better acquainted and there
more freedom of lntsrccuree that has ere
oted better understanding. nvsvythun
Il done oUenly aud frnHkiy nov. vhsrea
before. ssch ntahufactUrer wovke,
teerstly"