New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-05-13
HEAD Of STEEL TRUST
CALLS It BENEFACTOR
Has Helped Many Small Con-
Germs to Enter Export Trade,
Says President Farrell.
DENIES POOL AGREEMENTS
Corporation Has Always Tried
to Extend It's Business, He
Declares-Sells Cheaper
Here than Abroad.

The United States steel Corporation
began the presentation OF It's defence
against the suit Of the government for
its discharge as "A corporation yesterday,
when James 4 Farrell. president OF the
corporation. took the stand In It's behalf
His testimony was given at "A special
hearing before Henry T.. Brown, special
examiner and was aimed to show that
the concern had not violated the provi-
sions Of the sherman antitrust act by
the formation OF pools or agreements TO
the detriment of Legitimate trade.
Jacob ". Dickinson. former Secretary
OF War. has charge of the prosecution or
the case. assisted by Henry T.. Cotton
Richard \. Lindabury is counsel for 'ne
steel Corporation. and G. a. Severance
also OF the corporation legal stan. CON
Quoted the examination OF Mr.. Farrell,
who was the only witness.
The last hearing in the case was held
i'm February, when the presentation or
the prosecutions arguments was finished
after nearly a years time. Mr.. Farrell
will take the stand again this morning.
when the hearing will be continued.
Although the production of the Steel
CORPORATIONS plants has increased tre-
mendously since its formation. according
TO Mr.. Farrell. the business has always
been conducted Independently OF pools
or agreements with other concerns.
I'VE have not had agreements with
councillors I'm foreign countries about
kceping out Of their markets In exchange
for their keeping out OF ours" the wit
uass declared. Instead we have tried
at all times to extend our foreign mar
kets. and have done this when our COM
petitors In this country have exported
only when there was dearth I'm the
home market
Mr. Farrell presented statements tend
ing I. show that the total export ship
ments OF the corpora ton have increased
from 1.123.392 tons net. with n value of
s31.sSs.13s. in 1904. to 1881. 1876 net tons,
valued at SOL. 9Si,23?. I'm 1912.
THE great export trade Of the United
States I'm steel products could never have
increased to it's present proportions"
President Farrell stated. "if II had not
been for the formation Of the Steel Cor
poration. None OF the subsidiary con-
Germs which went TO make up the corpo-
ration could have established or main
tanned the agencies for business abroad
which is possible through the organiza-
ton Of the Steel Corporation"
The corporation. according to the wit
ness. has 26S of these agencies. distrb-
uted throughout sixty countries. and
sells its products from Iceland To the
Fiji Islands" President Farrell also de-
clared that the corporation had been OF
benefit to other concerns I'm the United
States anxious 10 enter the foreign mar
kct. and that II had repeatedly undersold
IT'S own products to these manufacturers
TO the amount OF s30.0O0O00 annually
50 that they might manufacture and sell
IN expert trade.
"a diversity Of products is necessary
for the foreign market" Mr.. Farrell tes-
tilted. land this is only possible when
there IL an amalgamation OF concerns
able to compete with foreign plants.
The company has done this through all
its yGs agencies until there has been an
increase in the output Of its subsidiary
plants from 900, 900 tons In 1903 TO 2,2i6.-
600 tons In l9lZ, an increase Oh 'VV per
cent. The corporation Furthermore now
does 80 per cent Of the foreign trade car
ried on by this country"
Mr. Farrell denied the allegations made
I'm the governments case that the In
ternational Harvester Company enjoyed
unfair advantages in the purchase ~
steel from the corporation by presenting
,ollaa m show that the amount OF steel
sold to that company was lnslgnihcant.