The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-06-02
GOVT. MUST CONTROL
ALL BIG CORPORATIONS
tcontiausd from page -.

the making OF iron and steel" said
Gary.
Gary. In relating the formation OF
the American Iron and Steel Institute,
declared that the United States Steel
Corporation could not control the
price of steel products. He said the
institute was formed after the panic OF
1907. The United States Steel Cor
poration then, he said, owned 90 per-
cent or the steel business OF the eeHh-
try Now, he declared, II owns OILY
fifty per cent.
AT the time OF the panic In New
York" said Gary, there was a great
generalization of business. II was
believed by many that II the iron and
steel industry could be made solid 4
great deal Of the Generalization could
be prevented.
The general impression throughout
the steel trade was that the United
States Steel Corporation should keep
prices from fiuctuating, which might
entail disaster.
Under tile law we had no right TO
make any agreement with our com
petitors 10 maintain prices.
However, bound 10 sustain SO far
as possible the equilibrium in the
steel business we believed we had no
right TO proceed TO the destructive
competition that before that had usu-
ally followed such periods or depres
sion. That would have meant that
many manufacturers OF steel would
have been driven into bankruptcy.
so invited a number OF steel
manufacturers TO meet me at dinner
and suggested that the only way we
could prevent general decentralization
was for the steel people TO make D
disclosure by each TO all or the cir
cumstances In his business.
1--WE haven't controlled the price OF
steel, and We can't control II. have
never believed In fixed prices. nor IN
changing prices by common consent
Neither do believe in fixing prices
by ruinous competition"
II don't see." remarked Stanley
how this hostility TO low prices is
found in the consumer"
Gary said that in a fiuctuating mar
ket the uncertainty OF prices made
the condition bad for both buyer and
seller
do you think the Sherman law
still leaves business in the same de-
structive warfare of competition?
Rep. Littleton. Dem, N. ~, asked
Gary said he thought the United
States Steel corporation controls
Rather more than fifty per cent, OF
the present available ore supply He
asserted that his company did not
make armor plate.
Gary said that he had never
expressed any opinion as to the duty
on ore.
Gary said that none OF the ore OF
the Vermillion Range III Minnesota.
owned by the corporation was sold to
independents.
pcration could keep the prices down.
but couldn't keep them up He said
the corporation could not sell rails
for less than s2S ton. Stanley then
passed to the export business.
There are sometimes" Gary said.
When we will dump rails on foreign
markets at less than cost. 1t is jus,
like a merchant clearing stock. This
does not result in disaster to the Am.
erican purchaser-it is 10 his benefit
because we can then sell rail CHEAP
err"
What is the price you get In those
'co1ntTieS-where that dm6rrunate con.
dition exists that there "a no agree
ment as to prices?" Stanley asked
There Is no country except the
United States where there isn't an
agreement as to prices" Gary an.
swered
Would there be a difference In
price OF s4-a.ton In countries where
these agreement. are the rule and
here?" asked Stanley.
i don't think So replied Gary.