The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-11-25
A LEADER IN THE STEEL TRUST
RELIES TO ROOSEVELT
ON TRUSTS
TAKES UP MILL CITY SPEECH
Conclusions Reached That Federal
Regulation of Trusts and PUB
lieity of Accounts Are
Both Impossible
THE DANGER Is MAGN1F1ED
Special to The Globe.

Special to The Globe.
BROOKLYN, Nov. 23.-The Eagle to-
day publishes an important interview
with Gilbert III. Gary, chairman of the
executive committee and member OF the
finance OF the United States Steel cor
poration, on possible government regula-
uon of trusts and the enforcement of
national law requiring publicity as to
their books and transactions. The inter-
view is significant, as it just precedes
President Rooseyelt's first message to
congress, in which a declaration on gov
ernmental regulation of trusts is expect
ed.
Judge Gary takes direct cognizance of
the utterance of President Roosevelt in a
public speech at Minneapolis, where he
urged the necessity of federal supervis-
ion and control Of the great business
corporations, with a view of resulting
publicity as to their operations, financial
and otherwise. This declaration follsw-
ed similar one in one Of his last mes
sages to the legislature of New York,
and was quite evidently the result of
matured thought.
Gary Replies to President.
Judge Gary. in his interview, regrets
that he could not give this reply the
-time that 1t deserved, but in what re
NaAA'SAAtSeAS
Of the trusts is possible, or that publicity
as to their transactions will be of any
great value to the people. He agrees
With the president that corporations in
tentionally deceiving the public or in
vestors should be condemned. He argues
that pursuing such a course they cannot
long exist, that they must end in ruin
The minimum cost Is necessary to
protect the domestic manufacturer
against foreign competition To hold the
domestic trade the manufacturer is COM
PEELED to produce and distribute at cost
which will permit him to underbid and
undersell his competitor from abroad
That manufacturer, whether an IN
dlV1dual, firm or corporation, is able
when he does reach the minimum cost to
underbid his foreign competitor on that
competitors own ground does not alter
the fact of the demand on him to reach
the minimum cost to retain the domestic
trade.
Labor is more costly in this country
than elsewhere Were 1t advisable,
which it is not the reduction of the
wages of labor is not expedient. The
demand for large quantities speedily pro-
duced is another difficulty. This demand
on the capacities of the plant is as great
a consideration as is the minimum point
OF production and distribution To keep
abreast of the times-a manufacturer
must control large sums of money.
Large Capital Necessary.
The cost of establishing and maintain
Ing the best mills and most modern
equipment is enormous. The best talent
is never cheap. 1t becomes apparent,
then, that a corporation with compare
lively limited capital, still less an indi-
vidual manufacturer, cannot secure or
maintain the required facilities, the tall
ent, or control the large sums necessary
to produce and distribute the manufac-
tured article at the minimum cost. cut
OF these conditions come the trusts-the
industrial cOmbinationS-the corporations
with such large capitalization that the
costly facilities for production in the
large quantities demanded may be Sc
cured and maintained seeking one end.
not monopoly Of production. bat the
minimum cost of production and dis
tribution.
Subject Only to State Control.
eThese Industrial combinations, as crea-
lures of the state, whatever their capital
ization may be, are subject to the laws
OF the land. But as creations of the
states, they are local. 1t is under this
head that President Roosevelt's utteran-
ces might be discussed. But, as I pre-.
viously said, do not know what is In
the presidents mind-what he holds and
has not as yet expressed. He advocates
federal supervision, as leading to public
ity Of the operations of the great cor.
porationS. AS they exist today the cor
porations are the creations Of the states.
AS such they are local. Under the PIN
ciples and policy of this country the gov.
eminent may not interfere with local
questions.
1.-THE chief justice OF tie supreme court