The Birmingham age-herald., 1913-05-13
Corporation President on
Stand for Defense in the
Government Suit
AMAZES HEARERS =
WITH TESTIMONY
Holds Audience Keenly Interested in
Story of Rise From LabOrer to
Head of Great Industry.
Traces History

New York, May 12.--The United
States Steel corporation was pictured
today by James A. Farrell. its president,
as combination organized not to sup
press competition but to develop the
sale of steel in foreign lands, a de-
Nelopment which could not have been
accomplished, he said, If the corpora
tion had not taken the various COM
panies competing for foreign business
under its wing. He was testifying as
the first witness for the defense in the
government suit to dissolve the cor
poration as combination in restraint
of trade.
Mr.. Farrell amazed his hearers by his
intimate knowledge of affairs in re-
mote parts ofthe world and held them
keenly interested as he narrated the
story of his rise from common la
borer in a steel mill at the age of Is
to be the head of the. greatest indus
trial corporation in the world at the
age of So
Traces Growth
The witness traced the growth of the
Steel corporations export business
from 900 tons, the first year it was
organized, to 2,246.600 tons in 1872 and
from s31,000.0o0 in value in 1904 to
$4,000, 900 in 1912, and said that efforts
of the corporation to push its foreign
trade had been continuous and inde-
datigable." The result had been that
30 per cent of the country's foreign
trade in steel was done by the corpora
tion, he said.
I'VE have made the strongest effort
possible to increase our foreign trade
as compared with our domestic trade, y
MIR. Farrell declared. "our competitors
have only been concerned with foreign
business when domestic trade has been
insufficient TO keep their capacity en-
ployed. We have kept after the foreign
trade continuously. If we had not 1t
would have been impossible to develop
It,"
contradicting the testimony of VIII
liam Il. Corey, his predecessor as pres
ident of the corporation that there had
been understanding" between the cor
poration and foreign manufacturers as
to prices and a division of territory
Mr. Farrell said;
I'VE have never operated under any
pools or agreements with foreign man
ufacturers either as to price or loca-
tion We have never entered into any
contracts or agreements with foreign
manufacturers to stay out of their mar
ket provided they would stay out of
ours"
He denied, also, that the corporation
l.
ucts lower abroad than in this coun-
try.
I'm fact, some of our commodities
are sold higher" he said.
Foreign Competition
Before the corporation was organized,
the witness recited seven, steel COM
panies were competing for foreign bus
mess. On being taken over their for
eign offices were combined under one
office and their operations sympa-
thetzed In 904 the United States Steel
Products company was organized to
take charge of the foreign trade and
push it. Exhaustive studies were made
of foreign markets that business could
be done according to the usage and
requirements of each particular mar
ket and "at enormous expense" The
process OF manufacture at the mills
of the corporation were adapted to
meet requirments.
The corporation established agencies
from Iceland to the Fiji Islands," 26S
In all, Mr. Farrell said and as re-
suit the export business of the sub
salaries had greatly increased In hte
case of the Carnegie Steel company it
was to have "a per cent of its whole
production. A diversity of products en-
Hbled the corporation to meet all de-
nands from bed springs to steel bridges.
No single subsidiary with one or two
products. he said, could have main
tanned these agencies on such an extern
sive scale. Mr.. Farrell told of selling
wire in Patagonia, rails in Formosa,
steel bridges In Iceland and wire
fencing in South Africa Steampships
had been bought or chartered to carry
steel to points seldom touched on reg
nlar steamship routes. he added.
Cancelled Contracts
This foreign trade, he further ex-
plained, had been developed in the face
of financial antagonism in Europe
preferential tariffs and local opposi-
ton. The city authorities OF Manches-
ter, Eng. had cancelled contract with
the corporation for tramway rails in
favor of local manufacturers, he said
although the bid of the Steel corpora
tion was the lowest.
Forty thousand men are employed
by the corporation in manufacturing
steel for export and $4,000 more in
making the steel sold to manufacturers
of goods sent abroad for sale, the lat
ter amounting to $30,000.000.
I'VE do correspondence from our Of
1ce in every language" said the witness.
I'VE have to get the business. Our of
11ce is an encyclopedia for American
manufacturers on trade conditions in
foreign countries and we often lend
them our statesmen to do their busi
ness for them"