Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-05-13
Witness NarrateS Growth Of
Business in Foreign Fields
and How Constant Vigilance
Has Been Necessary,
GREAT CORPORATION
ABSOLUTELY ESSENTIAL
Testimony Given by William {,
Corey Is FlatIy Gontradicied
by Successor as Executive
Head Of Concern,

iuy soas,sa JOURNAL SPECIAL leAaep wiss
New York, May i2.The United
Statcs Steel corporation was pictured
today by James A. Farrell. lts prcsl-
dent. as a combination organized not
to suppress competition, hut to de-
velop the sale of steel in foreign lands
a development which could not hnvg
been accomplished he said. If the
corporation had not taken the various
companies competing for foreign bus
mess under les wings lie was testi-
fylng as the first witness tor the de.
fcnse In the government suit 10 dis
solve the corporation as combination
in restraint Of trade
Mr Farrell amazed his hearers by
his intimate knowledge of affairs IN
remote parts Of the world and held
them keenly Interested as he narrated
the story OF his rise from common
lahorer in steel min M the age Of
10, 10 be the head Of the greatest in
dustrial corporation Ia the world. at
the age of so,
The witness traced the growth of
The steel corporations export busi-
ness from 2g2. 900 tons the first year
1t was organized TO 2.2i6,G0O tons IN
1912. and from Ssi ,O00. 600 in value
In 1904, TO S92.000.O0O Ia 1872 and
said that the efforts OF the corpora
tion TO push It's foreign trade had
i,.a., H.a,t4uu.,t. a.I tpI.fatIoufia ff
The result had been that 90 Per cent
of the countrys foreign TRACE in steel
was done by the corporation. he said
We have made the strongest ef-
fort possible 10 increase our foreign
trade MS compared with our domestic
trade" Mr. Farrell declared. "OHr
competitors have only been concerned
with foreign business when domestic
trade has been insufficient to keep
their capacity employed. We have kept
after the foreign trade continuously II
we had not, it would nave been Inn
possible 10 develop IT,
contradicting the testimony Of VII
liam E Corey his predecessor, az
president of the corporation that
there had been understandings be-
tween the corporation and foreign
manufacturers as to prices and di-
vision Of territory Mr. Farrell said
we have never operated under any
pools or agreements with foreign
manufacturers either as to price or
locality. We have never entered into
contracts or agreements with foreign
manufacturers to stay out Of their
market provided they would stay out
Of ours"
lie denied also that the corporation
"made a practice" Of selling it's pro-
ducts lower abroad than in this eoun
try.
'In fact. some Of our commodities
are sold higher he said
Before the corporation was orea
nzcd the witness recited seven steel
were competing for foreign
business. on being taken over their
foreign offices were combined under
one office and their operations sys-
tematized. in 1904. the United states
steel Products company was Organz-
cd to take charge OF the foreign trade
and push IT, Exhaustive studies were
made Of foreign markets in order that +
business could be done according TO
the usagcs and requirements of each
particular market and "at an enor-
NOUS expense The processes Of
at the mills of the cor
poration were adapted to meet the
requirements
The corporation established agen-
1ies from Iceland to the Fiji Islands.
26S in an, Mr. Farrell said. and as a
result the export business OF the sub
salaries had greatly increascd In tho
case Of the Carnegie Steel company.
h. "a per cent Of its whole production
A diversity Of products enabled the
to meet MI demands from
bed spring to steel bridges No sim
Gle subsidiary with one or two pro-
lucts he said could have maintained
hese agencies on such an extensive
scale
Mr. Farrell told Of selling wire IN
rails in Formosa, steel
bridges IN Iceland and wire fencing
II south Africa. Steamships had been
lought or chartered to carry steel TO
POINTS seldom touched hy regular
teamshlp routes. he added.
This foreign trade, he further cx-
,lained, had been developed In The
ace Of financial antagonism In Eu-
ope preferential tariff and local op
position The city OF Manchester
england had cancelled contract
With the corporation for tramway
ails in favor Of local manufacturers
ie said. although the bid Of the steel
was the lowest.
The Tennessee Coal and Iron COM
ANY was being developed, he said,
With the purpose OF manufacturing
teel for the Mexican and South
american trade Despite a preferen-
ial tariff In favor OF Brush steel pro-