The Birmingham age-herald., 1912-01-23
FARRELL PROTESTS
 AGAINST PUBLICITY
 OF TRADE SECRETS
Says Gary Dinners Had No Influence in Maintain
 ing Prices
SHOULD NOT REPEAL
 THE SHERMAN LAW
Urges More Expensive Steel Rails for Safety-Present Rails Too Near Danger Zone of Brittleness.
 Resume Testimony Today

Resume Testimony Today Washington, January 22.-James J. Farrell, president of tho United States Steel corporation, protested before ths Stanley steel Investigating committee to- day against unnecessary publicity of manufacturers cost of steel products in this country. as ruinous 10 foreign trade of domestic manufacturers. The Steel corporation head also discussed with tho committee the "Gary dinner" and ideas of trust regulation which differed some
 what from suggestions previously made 1 by Ebert H. Gary executive head of
 the Steel corporation, Andrew Carnegie | and others.
 MT Farrell asserted that the Gary din-
 ners at which steel manufacturers as-
 sembed to discuss the trade had no in-
 huence in fixing or maintaining prices | though he thought they had influence in
 maintaining the stability of the market.
 T do not believe he said. that the
 price of any two steel manufacturers in
 the United States today are alike.
 Why has Judge Gary said that the
 day of competition has passed?a asked
 Representative Beall
 No Destructive Competition
 "I think he referred 10 destructive com
 petition" said Mr. Farrell, "as mat
 ter of fact steel prices today are very
 slow. There Is no doubt that reports of some corporations soon to be made
 will show that they are not getting the cost of manufacture out of present prices"
 Are you one of the apostles of this | new cult of industralism. advocating government control of corporations, as suggested by Judge Gary, Mr. Carnegie and others?"
 "G believe that there should be pab- licity of corporations, that this should show profits and losses and general eon- ditions of busuess,n said President Far rell. "I think that there should he su- pervising board, but believe that it would
 be hppraoteal. almost impossible, for q
 government board 10 l1x prices seven 10
 ma ximum prices. To determine tho cost of articles manufactured in the steel bus- mess alone requires a corps Of hundreds of experts.
 "I would have a supervising board.
 
 gate all corporations for the purpose of preventing mol unusually high rates, but also unusually low rates, which would result In reduced wages and impairment of plants.'
 Clarify Sherman Law l Mr Farrell said he did mol believe
 that the sherman law should be repealed, | but that 1t should be clarified that
 business men would know exactly what
 to do under it.
 When asked about statement before the committee by Andrew Carnegie that | 1t was obvious that there was some sort ! of combination among steel men today
 to maintain prices, President Farrell said: l "I understand Mr. Carnegie made that remark, but MT. Carnegie has not been l in the steel business for Il years You gentlemen probably were surprised at l the alacrity he displayed in giving you | information you desired This was the only positive statement 1 he did make" said Representative Beall, laughing
 l "Yes. about something he knew noth- i ing about" retorted MT. Farrell. l President Farrell told the committee l that steel rails in this country which sell for BPS a ton, the basic price. sup ply only half the market Special rails arc made at higher prices. He also urged more expensive rails for safety.
  1 fhe danger zone. of hrittleness. The liability of breakage and danger ls 1 greater than in the days of the softer rails We should have rails with a lower grade of carbon and of softer steel They would necessarily he hcay
 fer and would cost more 1 MT. Farrel's testimony will be re- | sumed tomorrow
 Protests Against Publicity
 "Is 1t your purpose to publish to the world all the details of our costs Of produetion?" demanded President James 1 Farrell of the United states Steel cor l poration today when put on the stand 1 before the stanley steel Investigating committee.
 of it is" said MT. Farrell. I think it a gross injustice to an industry built up in competition with Germany, Rus sia and Belgium. If it is proposed to put these secrets in the hands of our foreign competitors, our foreign busi- ness won't be worth anything within 12 months" MT. Farrell and J. A. Reed. general counsel for the steel corporation. were witnesses before the committee. At the outset they said they had no objection to members of the committee eXanin- ing the records to satisfy themselves, but they insisted that publication would work irrepa rable injury not only to the
  | it's competitors in this country. MT. Reed said cost information had been furnished to Herbert Knox Smith, com missioner of corporations. Told Herbert Knox Smith q asked Mir. Smith to take me Into l his confidence and otherwise tell me what he had learned in producing a ton of iron." replied Stanley and he 1 told me he could tell me only after consulting the President. l went to the President and found he had no desire to make a deep and mysterious matter about the cost of pig iron. As mat ter of fact. it turned out Mr Smith l had never told him the details. Tho 1 President authorized Mir. Smith to tell mo. and we went back to the commits sioner. There he said he did not have 1 the records any more, that they had i been sent back to you tthe charman) i and his recollection on the subject was not accurate. Then I went back to the United State Steel corporation and asked for all of the records. They objected on the ground that 1t would embarrass them in their business Thus did valuable informa ton, like the Arab. disappear. leaving no trace in the gov 1 ernment archives.
 | Tt is most vital that this committee | CONTINUED ON FACE 12)