New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-05-16
COREY'S POOL EVIDENCE
IS DENIED BY FARRELL
No international Agreement to
Control Prices and Sales,
Says Steel Head.
COMPETITION railways"
Corporation Could Not Drive
Out Large Opponents Without
Committing Suicide, Asserts
Witness in Dissolution Suit.

Flat denial of the testimony OF William
r. Corey ex-president Of the United
States Steel Corporation, previously given
in the governments suit for the dissolu-
ton Of the corporation under the sherman
antitrust law. was made by the present
president. James a Farrell yesterday.
Not only did Mr. Farrell assert the non
existence Of an International pool to con
troll prices and sales Of steel rails. but he
declared false the statement of MI Corey
that Mr. Farrell himself conducted the
pool negotiations and had discussed them
with him and Judge Ebert II. Gary,
chairman Of the board Of directors.
These denials were brought out during
the fourth day Of Mr. FarTelIs direct ties
timony. which the Steel Corporation is
putting forth in its defence before Henry
T. Brown. special examiner Mr.. Farrell :
evidence concerned an alleged information
al pool fol- the sale of steel rails al SIS a
ton and a similar agreement by which
foreign rail makers consented 10 Keep out
OF the American market
At the time OF Mr.. Coreys examination
by Jacob NJ. Dickinson. counsel for the
government, on January 22 1913. and on
several succeeding days, Mr.. Corey stated
that an international pool had been
formed by Mr. Farrell in 1904 and had
continued until 1910
According 10 the terms of the pool
agreement" Mr. Corey said. as reported
in The Tribune Of Thursday, January Is.
steel rail manufacturers of the several
steel producing countries agreed not TO
invade one anOther's territory Mr.. Corey
explained that each OF the groups of steel
producers took care of the business in
their respective countries without inter
ference from foreign producers.
While Mr.. Farrell testified that he had
talked with Mr. Corey Of foreign compe-
tition. ne declared he told Mr.. Corey he
had the impression that there would never
be any competition here because this
country produced 5.0O0,000 tons Of rails an
nuaily. there was duty o. s. 81 ton. ana
any attempt 10y foreign competitors 10
dump their goods on this market would be
met with repr!sals.
The witness was asked regarding r res
oiution said by Mr.. Corey TO have been
passed in 1904. referring to agreements as
10 the maintenance of the price al SIS a
ton. lie testified he had never heard Of It's
existence until it was introduced in evil
dence. and hence under it could not have
conducted pool negotiations with Judge
Gary.
he further said that only 50 per cent Of
the rails are sold at SOS a ton. and that the
price varies greatly. running as high as
S13o ton according to special specified
tions. There is always competition in
price he added.
The power of che steel Corporation 10
put its competitors out Of business also
was denied by Mr.. Farrell. The corpora
lion could not drive its large opponents in
the business world out of existence with
ont committing suicide" he declared.
The strength as a competitor OF the
Tennessee Coal and Iron Company. which
the corporation acquired in 1907. because.
according TO the previous testimony of Mr..
Corey, II was one of the chief opponents
of the corporation IN the manufacture Of
steel rails was another point OH which
) the witness contradicted the former cor
poration president. He said the company
f. was not showing a profit when bought in
/ 1907 and had never paid dividends