The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1908-12-24
PUBLICITY WOULD
CURB MONOPOLY
JUDGE GARY TELLS HOUSE COM
MITTEE THAT GOVERNMENT
CONTROL is NEEDED.
TARIFF PROTECTS RIVALS.
Steel Corporation, Witness Declares,
Could Crush Independents, but 1t
Respects Their Rights.
EXPLAINS THE SALES ABROAD.

WASHINGTON, ID. c., Dec. 10
Publicity and government control. not
government ownership nor government
supervision, is the solution offered Con-
gress though the ways and means COM
mittee by Judge Ebert II. Gary of the
United States Steel corporation of the
problems presented by all great com
binations, including transportation COM
panies.
Judge Gary, known as the diplomat of
the steel corporation. n witness under
oath, gave valuable testimony in the in
quiry which is now being conducted pre-
paratory to the preparation of Il tariff
bill. He was frank and strai ghtforward,
did not equivocatc in answering the
questions. and at times INDUCED in argu-
inent with members of the committee to
emphasize his opinion that the tariff On
steel should not be lowered.
Judge Gary authorized the publication
of statistics collected by the bureau of
corporations under the pledge of secrecy,
and promised to supply the committee
with much data which members We're
hopeless of obtaining at first hand.
IN Role Of Big Brother.
Some facts of Importance connected
with the steel industry We're brought out
by Judge Gary. The steel corporation,
according to his statement, is good
uatured big brother, which is aiding
and doing nothing to crush the indepen-
dents 1t can produce pig iron 81
ton cheaper than its competitors. 1t
could survive the horizontal reduction of
present duties 30 per cent. and might
be able to live under free trade, but any
reduction of consequence in present du-
ties would cripple the independents, he
said, and free trade would mean II mo-
nopoly for the steel trust.
Judge Gary detailed the methods EN-
ployed i'll establishing prices. lie de
MED that there is an agreement in re-
straint of trade. He told how the steel
manufacturers and the representatives
of railroads, including all the captains of
industry, met in his Office The cost of
production, the interest on capital in
vested and all other considerations of
influence were discussed and il was
agreed that sos a ton for steel rails was
reasonable, although this price gives the
steel corporation Il profit of 50 ton.
The property of tAe corporation today IS
worth 81 1872. 1877 1888, according to Judge
Gary. He does not transfer to earnings
the appreciation of the value of property
owned by the corporation, which is earn
ing on its capitalization annually $40
per cent, he said.
Could Crush Competitors.
The Steel Corporation could today. ut
its pleasure, crush out all competition.
This admission was freely made by
Judge Gary. 1t does not do so, he said,
because the rights of Independents are
respected. The failure Of independents
to underScll the great combine was eX-
planned as due to the knowledge that all
products could be marketed at the pre-
vaiilng prices and that no advantage
could be gained by the little follows in
inviting a war which could only ter
inmate in their determination because Of
their inability TO compete with the big
corporation, with its wonderful ecOuu-
mics, not only in the ownership of mines
but also in its transportation facilities
and manufacturing methods.
Judge Gary suggested rs probably the
best solution in the way of tariff
rate that would be prohibitve. to be i'm.
posed whenever foreign manufacturers
attempted to make the United States Il
dumping ground for their surplus. He
strongly defended the selling abroad at
lower prices than at home, claiming that
while the hcme consumers paid more
than the foreigners the great volume of
production, which created Il surplus that
had to be exported, reduced the cost Of
produ ton and benefited the home con
sumer inasmuCh as he received the bene.
mt of the economies in the large output.