The Birmingham age-herald., 1912-01-24
FARRELL SURPRI 5 THE STANLEY S
 PROBE COMM {
Says Steel Corporati l aat Harvester Company ---
 No Relations
DENIES REBATES TO
 STANDARD OIL co.
President of Steel Corporation Com- pletes His Testimony Before the Steel COmmittee-Gary Will
 Take the Stand Today

Take the Stand Today
 Washington, January 23.--James \. Farrell, president of the United States Steel corporation. surprised the Stanley steel trust Investigating committee to- day with the statement that the Steel corporation and the International Har- vester company have had no business dealings with each other for five or si years q
 The information, coming on the eI of proposed investigation of the Han vester company by Congress in whicl 1t was sought to show that the Harves- ter company and the Steel corporation had interloeking directors and that tho | latter gave rebates to the other, was doubly surprising.
 Representative McGillieuddy of Maine questioned President Farrell about the export business of the Steel corporation and rebates given to certain companies. Isn't it a fact that the Interna tional Harvester company gets larger rebates than are granted to smaller eoncerns?' McGillicuddy asked
 No Business Relations | "We have done no business with tho International Harvester company what ever for five or six years.' Mir. Farrell replied.
 "The International Harvester com- 1 pany has had boycott on this corpora tion. It grew out of controversy be- tween us and the international Harves- ter company. There Is absolutely noth- ing in common between Us. We do not do business with them" l Among the board of directors of tho United States Steef corporation are l1l- bert IT. Gary. 5George F. Baker George w. Perkins and Norman B. Ream, all of whom also are directors of the 1nterna- tlonal Halyester company. MT Gary Is chairman of the board of the United States Steel corporation and Mr Per kins is chairman of the nnauce commit- teo q fhslInternatlonat Harvester ee:ss I pany
 President Farrell was questioned at l length relative 10 a reported interna-
 tional organization of steel manufac-
 turers to control the price of steel rails. He explained that European manufac- turers had such an organization but that the United States Steel corporation was not d party to it.
 Asked by Mir. Beall if officials of the Steel corporation, when they decided to change prices. were not bound to tell their competitors. President Farrell an- swered in the negative. No Price Agreement l There is no such understanding that such notification should be given" he continued, Whenever d change is made competitors find it out within 10 minutes. If l should meet such com petitor on the street or at lunch I would not hesitate to tell him we were go- l ing to make a change in prices if one bad been decided upon' l President Farrell denied, in response to questions by Chairman Stanley, that | the Steel corporation gave any rebates or discounts to the Standard oil com pany on tin plate for cans. The minutes of the Carnegie com pany," said MT. Stanley show that re- bates were given the Standard Oil on tin plate"
 Before or after tie formation of the Steel corporation?' asked Attorney Reed.
 Afterwards" said the chairman.
 Since I have been president of the Steel corporation" said Mir. Farrell, "all tin plate has been sold to the Standard oil company and all other companies at a flat price"
 Price of Rails Representative Gardner sought an explana ton of the fact that the price of standard steel rails had remained fixed at $2S q ton for 10 years, when the price of all other steel products had huctuated.
 M xp1a i,af he figure for years had been regarded as fair price-and because the cost of manufacture of rails had steadily in- creased, no one would lower the price.
 "But, why don't you raise the prlee7' MT. Gardner asked. "I believe that the price will be raised" MT. Farrell responded. T do not think it will remain at $2S a ton much longer. Tho Republic Iron and Steel company, which has a rail mili has never operated 1t because it thought the price did not bring a fair return" The Steel corporation president eN- plained that the United States Steel products company, the subsidiary com pany handling the foreign business of the company owned steamship line, known as the Isthmian Steamship com- pany, which they were forced to oper- ate because they could get nope of the foreign steamship companies to | liiuult lDblt lItibiit Np Nhhhiiifo III OtH- tral America.
 | Export profits of the Steel corporation had increased. he said from s31,Oooo00 | in 1901 to s69,ooo,0o0 in 1911. President Farrell completed bis testi- mony today. Tomorrow Richard 1T. Gray 1 of San Francisco will be a witness. He will charge that the Steel corporation caused him to lose valuable armor plate contracts
 President Denies Monopoly | Em phatic denial that the United States Steel corporation is monopoly | charged was made by MT Farrell. He declared It was not the purpose of the cor ! poration ito gobble the export trade of ! the world at any cost "A monopoly of the iron and steel trade | in this country" said Mir Farrell. lis neither possible nor desirable. There is | no monopoly or anything approaching 1t. 1 Since the steel corporation was organ | ized there has been much new capital at- ! tracted 10 the industry and many furnaces | have been built, which are now controlled | by the Steel corporation. ! "It Is charged that the corporation is seeking to drive other countries out of | the export market That is far from the | truth. The British steel industry must ex- i port 70 per cent of the product a year i in order to live. Germany must export 50 l DOT cent and Belgium 80 peg cent. The | -~~-~~~~~~~~~~~~~~~~ (coNTINUED ON PAGE 2l