The Birmingham age-herald., 1913-06-29

corporation sells its product in almost
evefy country of the world. James A
Farrell reached the presidency of the
company because he took hold of the
selling end and Increased the annual bus
mess by $79,0o0,0oO. He deserved the title
he acquired Of the worlds most success
full salesman
other concerns like the Standard Oil
and the American Tobacco companies
have spent millions in promoting their
foreign trade. Agents and solicitors
and advertising men have penetrated al
most unknown regions to create demand
for the goods OF these firms could sup
ply. 1t would be interesting to know how
much the American Tobacco company has
expended in China alone with this OBJ
ject in view The almost unlimited capi-
tai of these big companies has enabled
them to undertake campaigns for new for
eign trade that were impossible to their
smaller and less fortunate competitors.
Judge Reeds Testimony
Judge James s. Reed of Pittsburg, tes-
tifying before the special examiner in the
proceedings tho government has instituted
against the Steel corporation said the
main purpose of the companys forma-
ton was to perfect Ill organization large
enough to go out after the world trade
and get it. Another reason was to eff
feet the economies possible through con-
Quoting business with the greatest econ
omy of production and the minimum cost
per unit. The average business man
knows the saving to be effected In the
cost of production, transportation and
selling when large amounts of goods are
handled.
The growth of the Steel corporation 6
export trade has established the economic
soundness of this view, according to
Judge Reed. He proved most interest
ing, since his finn has for years been the
lawyers for the Steel corporation and
for long time represented the Carnegie
Steel company. He denied that 1t was
the policy of the corporation to crush
competition, although there had been
times when the opportunity was present.
ed to do so. One of these was during
the panic of 1907, when business through
out the country was in a desperate condi-
ton. It's smaller rivals were practical
ly at the mercy of the big corporation
which was in a more independent situa-
ton because of the development of Its
foreign trade. Instead Of driving the 9TH
ers to the wall, Judge Gary, chairman of
the board of directors of the Steel cor
poration, called meeting of the steel and
iron producers and counseled them to
keep cool and keep the mills running
and the labor employed. That advice
was followed. according to the witness
before the government investigators and
the competitors were enabled to work
off their stock and weather the storm.
Had the Steel corporation sought to do so,
it could have used its superior credit to
extend business and to take new con-
tracts at the cut prices, thus driving the
independents to the wall. This testimony
of Judge Reed indicates live and let
live" policy on the part of the Steel
corporation.
Corporations Welfare Work
That the Steel corporation is not en-
tirely "soulless' one is proven by the
magnitude of its welfare work. This
activity is estimated to cost s5, 10000 a
year. for which in theory it receives
not cent in return. But the belief If
the company is, that 1t has its CONNER
cial as well as its altruistic side and
this is proven by the constant expansion
of this work.
In its various plants, operating it's rail-
roads and steamships and handling its