The Sentinel=record., 1912-01-24
TRUSTS ARE
 N0f RELATED
PRESIDENT FARRELL DENIES RE. LhTIoNs TO STEEL CORPORA.
 TON AND HARVESTER co.
Says They Have Had No Business Re lations for Six Years-ca-ses Sur prise in the Steel Trust ln-
 Vestigation.

Washington, Jan. 23-James A Far. relI. president of the United States Steel Corporation surprised the Stan. ley steel trust Investigating commit. tee today with the statement that the steel corporation and the lnternation- al Harvester Compaay have had no hnsinesa dealings with each other for five or six years.
 The information. coming on the eve Of q proposed investigation Of the harvester company by congress, in which t was sought to show that the harvester company and the steel cor poration had interlocking directors and that the latter gave rebates to the former on steel, was doubly surpris iag.
 Representative McGincuddy of Maine, questioned President Farrell about the export business of the steel corporation and rebates given to cer. tain companies
 "Isnt 1t fact that the lnternation- al Harvester Company gets larger re. batea than are granted smaller con. coras?' Mr. AcGillicuddy asked
 'W-e have done no business with the international Harvester Company whatever for five or six years, Mir Farrell replied, "The international Harvester Company has had boycott on this corporation It all grew out of a controversy between one of our subsidiary companies and the harvest CT company. It started as mere qlibble between sslesmen and result. ed in a complete severance of bust ness relations, There is absolutely nothing in common between us. We don't do business with them.
 Among the board Of directors of tn, United States Steel Corporation are Ebert Il. Gary, George K. Baker, George w. Perksas and Norman B Ream. all of whom also are directors of the International Harvester Com pany
 Mir Gary is chairman of the board of the United states Steel Corpora ton. and Mir. Perkins is chairman oi the finance committee of the Interna tlonal Harvester Comnany.
 President Farrell was interrogated at length relative to a reported inter national organization of steel manufac tirers to control the price Of stee rails He explained that European manufacturers had such an organiza tion, but that the steel corporation was not a party 10 it.
 Asked by Mir Besll if officials oi the steel corporation. when they de. cIded to change prices was not bound Co tell their competitors, President Farrell answered in the negative
 There is no understanding that such notification should be given, he continued. Whenever a change ot prices is made. competitors find II out within ten minutes If I should meet such competitor on the street or at lunch. ! would not hesitate to tell him we were going to make a change in prices if one had been de cIded upon.
 President Farrell denied in response to questions by Chairman Stanley that the steel corporation gave any rebates or discouats to the a,andard Oil Company on tin plate for cans.
 "The minutes of the Carnegie com pany," said Mir. Stanley, show that rebates wera given the Standard oil Company on tin plate"
 Before or after the formation oi the steel corporation?" asked Attor Rey Reed
 'Atterward, said the chairman.
 *Sinoe r Aap4-beea president ol til' steel corporation, said Mir Farrei! all tin plate has been sold to th' Standard Oil Company and all othe companies al a flat price
 Representative Gardner sought al explanation of the fact that prices o standard steel rails had remained tiA edly at BPS ton for ter years, whel the price Of all other steel product Dad tuctuated Mir Farrell explah ed that the BPS figure for years ha 1eeh regarded as q fair price, and o' cause the cost of manufacture of rail had steadily increased, no one woul lower the price.
 But why don't you raise the price? Mir Gardner asked.