Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1912-01-26
NO MONOPOLY IN STEEL
DECLARES J. J. FARRELL


denial that the United States Steel cor
poration is a monopoly as charged"
was made to the house investigating
committee today by Pres. ]. ]. Farrell.
He declared 1t was not the purpose OF
the corporation ito gobble the export
trade of the world at any cost"
"A monopoly of the iron and steel
trade in this country" said Mr.. Far
rell, 'is neither possible nor desirable.
There is no monopoly or anything ap-
preaching it. Since the steel corpora
ton was organized there has been much
new capital attracted to the industry
and many furnaces have been built
which are not controlled by the steel
corporation.
1T 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 40 per cent Of the product
a year in order to live. Germany must
export so 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.
ct is true before the steel corpora
was formed, the steel exports of the
United States amounted to about 200A
600 tons a year. Last year the exports
of the United States Steel corporation
were about 100000 tons, valued az
$50, OOO,OO as against Germany's 5000
600, 900 tons.
at is not the aim of the steel cor
poration to grab the export trade or
the world. We are conducting our ex
port business on safe and sane basis
without any jealousy toward other ma
tions to whom export trade is OF such
vital Importance"
The suggestion made by the COM
missioner of corporations, Herbert
Knox Smith, on his report on
the United States Steel corpora
ton that the corporation and its
railroad subsidiariesa should be segre-
gated comedies with the view OF Chair
man Stanley and other members of the
house steel trust investigating commit
tee.
The committee for many months has
been inquiring into the steel corpora
Of operating their transportation facili-
ties. An exposition Of its discoveries is
to be made within a few weeks.
Scores of witnesses still are to be
summoned, many of them independent
shippers and manufacturers, to show
that by controlling ore transportation
facilities from the great lakes to Pitts
burg and in the Birmingham district
that the steel corporation holds tre-
o1x ov,fo
The report of the commissioner of cor
porations that the steel corporation
makes excessive profit on its ore hold
ings is another feature which the house
committee is planning to delve into
thoroughly before the inquiry is con-
cluded.
publication Of the bureau of corpor-
atoms report on the production cost OF
steel products will not change the com
mittee's determination to see the orig
inal cost sheets of the United States
Seeel corporation. Chairman Stanley
made this announcement today when
President Farrell appeared to resume
testifying. Although he praised Com
missioner Smiths report Mr.. Stanley
said the source of the statistics is not
shown.
President Farrell, when asked about
the distribution of the steel corpora
I1OnS bonus LuLu 10 CLupAOseS1 SelAN NiAfAb
last year this fund amounted to $1,40U,-
600.
who benefits by it. the laborer or
salaried mang" asked Chairman Stanley.
Both; foremen and skilled men large
ly," was the reply.
1--WE have at the entrance Of the mill
a question box. where men may give
suggestions. Beneficial suggestions are
rewarded IT is reward for merit. IL
gives an opportunity for men to devei-
Cd ideas. There are a great many peo-
pie in this world who carry ideas around
in their heads and never get an oppor-
tunity to develop them or get any bene-
fit from them"
Methods under which employees buy
stock in the corporation were described.
Attorney Reed said that the men receiv-
ing less than $500 a year in 1870 bought
one share each: men earning between
$500 and $500 bought 14,122 shares; high
salaried employees bought 4,5S5 shares.
A bonus dividend of S. a share is cred
tied the employe-purchasers till his
stock is paid for. If he lapses in pay
ment the money he has paid in is divided
pro rata among remaining employe-stock-
holders. II a stockholder is discharged
for cause. the same distributing process
is applied.
President Farrell admitted that the
basic price on rails sold in foreign trade
is lower than the domestic rate, but
that the company sought to get as high
prices as possible. He said the corpo-
ration did a bigger export business in
steel products other than rails because
of the extensive foreign tariff on rails.