Arizona republican., 1913-05-13
Says United States Steel Corporation Is Not An Organization to Suppress Competition But Develop Trade.
SAYS BUSINESS
 HAS INCREASED
Subsidiary Companies Now Find Market in Foreign Lands fors Their Pro ducts and All Have Bene- fitted Thereby.
ASSOCIATED PRESS DIsPArcHI

ASSOCIATED PRESS DIsPATCHI
 NEW YORK, May 12.-The United States Steel corporation was pictured today by James. A Farrell. president, as a combination organized not to suppress competition, but to develop the sale of steel in foreign lands and development which would not have been accomplished he said, if the corporation had not taken the various companies competing for foreign business under it's wing. He was testifying as the first witness for the defense in the government suit to dissolve the corporation as d combination in restraint of trade
 Farrell amazed his hearers by his intimate knowledge of affairs in re- mote parts of the world, and held them keenly interested as he mar rated the story of his rise from d common laborer in a steel mill at the age of fifteen to the head of the greatest industrial corporation in the world at the age of fifty.
 The witness traced the growth of the steel corporations export busi- ness from 292,000 tons the first year 1t was organized to 2.246.600 tons in 1912; from $31.000,OOO in 1904 to $92,- 000,0 in 1912
 He said the efforts of the corpora ton to push foreign trade had been continuous and indefatigable.
 As d result, he said, ninety per cent of the foreign trade in steel is dcne by the corporation, contradict ing the testimony of William E. Cor ey, his predecessor as president of the corporation, that there had been an understanding" between the cor poration and foreign manufacturers as to the division of the territory. and said:
 We have never operated under any pools or agreements with foreign manufacturers as to the price or To cation He denied also that the corporation made a practice" of sell ing products lower abroad than in this country
 Tn fact, some of the commodities sold higher he said.
 Before the corporation was organ ized. the witness testified, seven steel companies were competing for for eign business. On being taken over their foreign offices combined under one office and the operations were
 
 States Steel Products company was organized to take charge of the for eign trade and push it. Exhaustive studies were made of the foreign markets in order that the business be done according to the usages and requirements of each particular mar ket. At an enormous expense" the processes of manufacture in the mills of the corporation were adapted to meet these requirements
 The corporation has established agencies from Iceland to the Fiji Islands" 268 in all, Farrell said and as a result the export business of the subsidiaries had greatly increased In the case of the Carnegie Steel com pany it advanced to 24 Der cent of the whole production The diversity Of the product enabled the corpora tion to meet all demands from bed springs to steel bridges. No single subsidiary with one or two products he said, could have maintained these agencies on such an extensive scale.
 Steamships had been bought or chartered to carry steel to points sell dom touched on regular steamship routes, he added
 This foreign trade" he further explained, has been developed in the face of the financial antagonism in Europe, preferential tariffs and local opposition" The Tennessee Coal and Iron Co, is being developed, he said, with the purpose of manufacturing steel for the Mexican and South American trade.
 We do correspondence from our office in all languages said the wit ness. We have got the business Our office is an encyclopedia for American manufacturers whose trade tends to foreign countries, and We often lend them salesmen to do their business for them"
 Farrell will continue his testimony tomorrow.