Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-01-24
By Saying That Corporation and
International Harvester Co.
Have Had No Business Deal
ings for Five or Six Years.
Denies Emphatically That Steel Cor
poration Is a Monopoly.

Farrell. president of the United states
Steel Corporation, surprised the stan
lev steel trust investigating commit
tee. today with the statement that the
Steel Corporation and the Internation-
al Harveser Co. have had no business
dealings with each other for a period
OF five or six years. The information
coming on the eve of a proposed in
vestigation of the Harvester Company
by Congress, in which it was sought
to show as one existing condition that
the Harvester Co and the Steel Cor
poration had interlocking directors
and that the latter gave rebates to
the former on steel. was doubly sur
prisins.
Rep. McGillieuddy of Maine ques-
toned President Farrell about the eX-
port business of the Steel Corporation
and rebates given to certain COM
paniee.
isn't it fact that the Information
al Harvester Co. gets larger rebates
than are granted smaller eoneerns?'
Mr.. MeGillicuddy asked.
I'VE have done no business with the
International Harvester Co, whatever,
for five or six years. Mr.. Farrell re-
piled. ''Fhe International Harvester
Co, has had d boycott on this corpora
ton. 1t all grew out of controversy
with one of our subsidiary companies
and the Harvester CO.
President Farrell was Intercepted
at length relative to a reported inter
national organization of steel manu-
facturers to control the price of steel
rails. He explained that European
manufacturers had such an organiza-
ton but that the United States Steel
Corporation was not a party to it.
Asked by Mr.. Beall if officials of the
Steel Corporation, when they decided
to change prices, We're not bound to
tell their competitors, President Far
rel answered in the negative.
President Farrell denied, I'm response to
questions by Chairman Stanley, that the
Steel Corporation gave any rebates or
discounts to the Standard Oil Co. on
tinplate for cans. 1.-The minutes of the
Carnegie Co." said Mr. Stanley, "shov
that rebates were given the Standard
Oil on tinplate."
Before or after the formation of the
Steel Corporation" asked Attorney Reed
''Afterward," said the chairman.
.Since l have been president of the
Steel Corporation said Mr.. Farrell. sall
tinplate has been sold to the Standard
Oil Co. and all other companies at flat
prices"
Rep Gardner sought an explanation of
the fact that the price of standard steel
rails had remained fxedly at SIS a ton
for 10 years when the price of all other
steel products had fiuctuated Mr. Far
rell explained that the s2S figure for years
had been regarded as a fair price and
because 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.
II believe the price will be raised Mr..
Farrell responded
Emphatic denial that the Steel Corpora
ton is a monopoly as charged was
made by President Farrell He declared
that 1t was not the purpose of the corpor-
alton to "gobble the export trade of the
world at any cost"
"a monopoly of the iron and steel trade
in this country said Mr.. Farrell, sis
neither possible nor desirable. There is
no monopoly nor anything approaching
it,
''It is charged that the corporation Is
seeking TO drive other countries out OF
the export market. This is far from the
truth. The British steel industry must
export 40 per cent. of the product yeai
in order to live. Germany must export 81
per cent. and Belgium so per cent. The
product of the United States is greater
than England, Germany and Belgium
combined and the domestic consumption
is SO much greater that export trade Is
not so vital 1t is true that before the
Steel Corporation was formed the stee
exports of the United States amounted Il
about 100000 tons a year. Last year thu
exports of the Steel Corporation were
about 100000 tons, valued at $50, 900
as against Germany's 100000 tons. w
are conducting our export business on !
safe and sane basis, without any Jealous!
toward other nations to whom expor
trade Is of such vital importance"
The publication of the bureau of cor
CONTINUED on Page Ten.)