Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-06-03

the Sherman antitrust law on one hand
and the obstacles of competition on the
other
1T is" replied Mr.. Gary. IT wish we
knew how we could rightfully and law
fully do It,"
Then you think in the light of the ex-
Dperience of the last ten years that present
prices cannot be maintained for another
long period and still avoid the sharp cor
ners of the Sherman law?' Mr.. Littleton
asked
II do not think It can be DONE" said
Mr.. Gary. There is such a diversity of
interests in the steel business that it
seems to me that there must be some way
devised to allow the manufacturers to pro-
tect themselves from obstructive competi-
ton that will drive manufacturers out of
business or else we will be in chaos
Could Form One Big Company.
Mr.. IAttleton asked the witness If the
United States Steel corporation couTd eff
feet a dissolution of it's subsidiary COM
panies and absorb them into one great
operating company under one head
Yes, we could and readily would If by
law or suggestion from official sources we
could see the way clear f'' Do
answering QueStiOHS Dy representative
McGlhcuddy of Maine on the subject OF
controlling prices, Mr., Gary detailed meth
DDS by which the cost, of production in, all
the mills is made uniformly low g; u 49,
by thus continually. reducing the cost
of production" suggested Mr.. McGnli-
cuddy. ut serves as an advantage for sub
sidiary companies to be in the corporation
rather than independent, does II not?'
"Oh, yes" said Mr.. Gary.
Then, an outside competitor has to
compete against all your companies that
are striving together to reduce the cost OF
production, does he notT'
Yes" was the reply, I'VE have The ad-
vantage OF greater capital, of greater talent
for organization, Of large funds in a cen
trail bank and the like; and the subsidiary
companies by virtue Of this organization
do not need half as much money as any OF
them would need to operate independently
These companies could not do one-half OF
the export business they do today If they
were segregated. The export situation was
one OF the dominating causes of organ.
lzation of the United States Steel corpora.
ton.
! Mr.. Gary said the steel corporation could
If necessary, limit the production in tn,
subsidiary companies and control the bust
ness methods in all of them.
Rails Sold Lower Abroad.
Chairman Stanley asked Mr.. Gary IL 4
were true that steel rails had been sold II
Mexico and Australia by the steel corpora
ton at a price 81 lower per ton than tn,
fixed price of S2s a ton He read from al
article which stated that every one knows
1T TO be a fact"
Everyone would include me-" said MI
Gary, land did not know that, nor wher
the information came from"
He further said that to his knowledg
the only time when the foreign price o
rails was higher than the domestic pric
was in 1906 when the foreign price was 2
cents higher per ton.
Mr.. Gary aroused the interest of tn
committee later by declaring that II woul
be necessary TO increase the price OF rail
} and that he already had told representa-
tives of the railroads that It would have t
be done. The cost OF producing rails wa
greatly increased in the last ten years
: said Mr.. Gary. Wages have increased
specifications are different, heavy eauip
ment and increased speed OF the railroad
demand bigger and better rails"
! Having failed in your strenuous effor
: to keep prices down during the last te
years, you are now going to put price
up?' suggested Chairman stanley
Il have given you the facts, which spea
a for themselves. You can characterize tn
Z, testimony much better than l can, Nj
: Chairman" was Mr.. Gary's response.