New-York tribune., 1912-01-24
U. S. Steeps President Denies
Attempts to Monopolize For
eign Trade-Thinks Rails
May Be Higher.
from The Tribune Bureau. J

the statement that the Steel Corporation
and tho Harvester company have had no
business dealings with each other for five
or SIX years.
This information, coming on the eve Of
proposed investigation of the Harvester
company by Congress in which It will be
sought to show that the Harvester CON-
pany and the Steel Corporation had inter
locking directorates and that the latter
gave rebates to the former on steel was
doubly surprising to the committee MEM
bers.
Isn't it fact that the International
Harvester Company gets larger rebates
than are granted to smaller concerns?" Mr.
McGillicuddy. of Maine. asked.
We have done no business whatever with
the international Harvester Company for
five or six years" Mr.. Farrell replied. The
International Harvester Company has had
boycott on this corporation. 1t all grew
out Of controversy between one Of our
subsidiary companies and the Harvester
company. II started as mere quibbe be-
tween statesmen. and resulted in COM
plete severance of business relations. There
is absolutely nothing in common between
US. We don't do business with them"
Steel Corporation are Elbert H. Gary.
George F. Baker, George w. Perkins and
Norman b. Ream all OF whom also are
directors of the International Harvester
Company. Mr.. Gary is chairman OF the
board OF the United States Steel Corpora
ton, and Mr.. Perkins is chairman of the
finance committee Of the Harvester COM
Tany.
Not in a Steel Rail Pool.
President Farrell was examined at length
relative TO a reported international or
ganization of steel manufacturers TO con-
troll the price of rails. He explained that
European manufacturers had such an or
ganization, but the United States Steel
Corporation was not party TO it,
Asked by Mr.. Beall If officials Of the
Steel Corporation when they decided TO
change prices were not bound to tell their
competitors. Mr. Farrell answered in the
negative.
There is no understanding that such
notification should be given" he said.
Whenever a change Of price is made com
retitors find 1t out within ten minutes. II
! should meet a competitor on the street
or at luncheon would not hesitate to tell
prices II one had been decided upon"
Mr.. Farrell denied. in response to ques-
tions by Mr.. Stanley, that the steel Cor
roration gave any rebates or discounts TO
the Standard OIL Company on tin plate for
cans.
THE minutes OF the Carnegie company"
said Mr.. Stanley, SHOW that rebates were
given to the Standard Oil on tin plate"
Before or after the formation OF the
steel Corporation?" asked Mr.. Reed, coun-
sci for the Steel corporation.
"Afterward," said the chairman.
Since I have been president OF the steel
Corporaton." said Mr.. Farrell, "al tin
plate has been sold to the Standard Oil
Company and all other companies at fiat
price"
Representative Gardner sought an er-
PLANTATION Of the fact that the price Of
standard steel rails had remained at SOS
ton for ten years when the nrices Of all
other steel products had fuctuated
Mr.. Farrell explained that SOS had been
regarded as a fair price for years. and be-
cause the cost OF manufacture Of rails had
steadily increased no one would lower the
price.
But why don't you raise the price,
Mr.. Gardner asked.
Steel Rails May Be Higher.
q believe that the price will he raised. ="
Mir. Farrell replied. 81 do not think 1t VIII
remain at s2s a ton much longer. The Re-
r,lblic Iron and steel Company, which has
a rail mill. has never operated 1t because
Il thought the price did not bring a fair
return"
Mr.. Farrell explained that the United
states steel Products Company. the SUBJ
sidiary handling the foreign business OF
the corporation. owned a steamship line
Known as the Isthmian Steamship Com
uanv. which II was forced to build he
cause Il could get no foreign steamship
company TO handle its freight to countries
in Central America
The export business Of the steel Corpora
ton had increased. he said, from Sl'0"oo
in 1904 to 100000 IN 1911.
Mr. Farrell declared that it was not the
purpose Of the corporation TO gobble the
export trade OF the world at any cost
"A monopoly OF the iron and steel trade
I'm this country" he said ''is neither pos
eible nor desirable There is no monopoly,
ror anything approaching ii. Since the
Steel Corporation was organized there has
heen much new capital attracted to the IN
dusiry and many furnaces have been bulIt
which are not controlled by the corpora
ton II 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 export 10
yer cent of the product year in order 10
live Germany must export 80 per cent and
Belgium 50 per cent. The product Of the
United States is greater than that cf Eng
land Germany and Belgium combined, and
the domestic consumption is so much great
cr that export trade is not so vital. IL is
true that before the Steel Corporation was
formed the steel exports of the United
States amounted to about 20.CO) tons o
year Last year the exports of the United
States Steel Corporation were about 2OO),-
coo tons. valued at $50. 10000 as against
Germany's 100000 tons. 1t is not the aim
Of the steel Corporation TO grab the ex-
port trade OF the world We are conduct
ing our export business en- safe and sane
basis. without any Jealousy toward Other
nations. TO whom export trade Is Of such
vital Importance"
Mr. Farrell said the basic price on rails
sold TO foreign countries was lower than
the domestic rate. but that the corporation
sought 10 get as high prices as possible
He gave the committee the tariffs on steel
rails In various countries. as follows: Ger
many s. O3 a ton: France si7 20; Russia,
SIS so; Spain and Italy. 81 IS: Austria Hun
gary, Sl2 81. and Canada, 81 S. The duty on