Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-01-23
is NOT A MONOPOLY
President FarreII's Defense of
Steel Corporation
BEFORE PROBE committee
Business Methods Of Big Combine
Explained by Witnesses. :
employees AS STOCKHOLDERS
Chairman Stanley Expresses De-
termination to Inspect Books Of
Companies Subpoenas Issued.

The committee Of the House Of which
Representative Stanley is chairman,
which has been investigating the so-called
morning.
corporations of the cost Of production
of steel products. Chairman Stanley an
nounced to the committee when President
Farrell Of the United States Steel Cor
poration appeared. would not change the
committees determination to see the
original cost sheets Of the corporation.
THE report Of the commissioner OF
corporations is undoubtedly an able docu-
ment," said Chairman Stanley, 'but the
printed statistics do not show from what
source they came. 1t is still necessary
that this committee have access to the
original records in order to arrive at an
intelligent report"
President Farrell had been asked by
the committee to show the distribution
of the steel corporations bonus fund
among wage earners and salaried en-
ployes. Mr.. Farrell explained that every
year the corporation set aside a certain
ployes. Last year the fund was 81 400,
600
Not Stock Subscriptions.
This fund is entirely different from the
stock subscription fund.-" he said. ut is
for rewards of efficient work. such as de-
chanical invention, methods of utilizing
by-produrts, etc. The money is allotted
to the subsidiary companies"
.'Who benefits by it, the laborer or
salaried man." asked Chairman Stanley.
Both. <but foremen and skilled men
largely" was the reply. 1--WE have at
the entrance Of the mill question box,
wherein men may give suggestions. Many
suggestions are carried out and prove
beneficial. and that man is rewarded. 1t
is reward for merit. 1t gives an oppor-
tunity for men to develop ideas. There
are a great many people in this world
who carry ideas around in their heads
and never set opportunity 10 develop
them or get any benefit from them
1.-The bonus goes to everybody who de-
serves it," continued Mr.. Farrell. For
instance. a brakeman recently invented a
dumping machine for which he was given
q bonus.
Privilege to Employees.
planned that every employee could sub
scribe for the corporations stock, re-
ceiving every year in addition to the reg
ular dividends So a share.
"How much of that stock goes to wage
earners and to men who earn salaries?"
asked the chairman.
I'm the year 1910" said Mr.. Reed,
1923 men received less than $500 a year
subscribed for stock; 1O.3H men earning
between $500 and $3.50 year, SUBJ
scribed: 1895 men receiving more than
$3.50 year subscribed for stock.
The $500 men in 1910 took one share
av,;A ohov in,
earning between $500 and $500 took
14,l22 shares and the high salar.ed en-
ployes took 1885 shares"
1t was brought out that the bonus dlvl-
dend Of S. a share Is credited to the en-
ploye until the stock is all paid for. Then
1t is turned over to him.
Suppose such q stakeholder is dis
charged for cause" asked the chair
man. what becomes of the accumu-
lated bonus dividend?'
also done in the case of an employe
who buys stock and drops out on his
PAYMENTS" said Mr.. Reed. THE money
turned in this way is divided pro rata
among the remaining employe stock
holders"
Effort to Secure Books Renewed.
The question of getting the records of
the various subsidiary companies OF the
steer corporation WdS d60Ah SAaSOA "AASiA
President Farrell was asked II he would
tell the presidents Of the various COM
panies to deliver to the committee rec
ords desired.
That is not my function" said Mr..
Farrell. AS / said before, have nothing
to do with such matters"
"Such a demand. II made In subpoena,
interjected Attorney Reed, would I'M
doubtedly be referred to counsel. and the
counsel certainly would advise all such
officers that they must obey such cub
poenas. No one would dare to advise
them otherwise"
The committee ordered additional
subpOenas served, one for w. B. Schil-
Ter. president Of the Lake Terminal
railway. for statistics on freight ship
ped over that road, a subsidiary OF the
steel corporation.
President Farrelrs attention was
called to criticism Of the American
steel business made by q British writer.
1t prompted him to declare that the
United States Steel Corporation was
not a monopoly. as charged. and that
II was not its purpose to "gobble the
export trade Of the world at any cost. +"
No Desire to 'Monopolize.
"a monopoly Of the iron and steel
trade in this country, said Mr.. Farrell.
els neither possible nor desirable. There