New-York tribune., 1911-11-30
GARY ON CORPORATIONS
Continued from first page.

Continued from first page.
be established by trade agreement, or
raw materials, such as cotton or tobacco
should be pooled, or if patents should be
used TO the public detriment, this comm's-
sion should be empowered TO establish
maximum prices for the goods thus con-
trolled"
How would the commission know
whether an agreement among steel men to
fix the price Of rails at $2S was restraint
Of trade'?' asked Senator Cummins.
1T would soon become competent 10 know
that" replied Judge Gary. 'as the inter
state Commerce Commission has become
competent 10 decide whether rates are just
and reasonable"
lie declared that unrestricted compeu-
ton meant the ruin of the small individual
on concern and the gradual strengthening OF
the natural monopoly Of the larger. AS op-
posed TO this. he urged that the government
recognize the need Of partial agreements be
tween corporations ana individuals. so that
an actual competition might still he main
tanned thal would be fair and free TO all in
tercsts
is there any particular thing now clearly
forbidden by the sherman law that you
think ought TO be permitted?' asked Senator
Cummns.
Judge Gary thought not but he said the
business difficulty lay in deciding before
hand what amounted 10 restraint of trade
Ex-Judge Gary said the Steel Corporation
had been accused OF making agreements to
restrain trade and increase prices. it had
never done more he said, than 10 try 10
expand trade, maintain fair prices. steady
the market and prevent wide fluctuations
This had been the purpose of the so-cslled
Gary dinners and the conferences among
steel men.
But now with these dinners end CONFER
ences mentioned in the governments bill
OF complaint filed against US" he added
Il am afraid OF incurring public displeas-
ure II do anything TO maintain the eqai-
lbrium Of prices Many manufacturers are
now selling below cost. and II the situa-
ton continues they will 90 into bank-
ruptcy. We wouldn't think of doing no"
what Mr.. Carnegie and others would have
done twelve years ago. and would have
thought il perfectly right TO do
He said that there could be no return
to unrestrained competition in the uni'eu
States without the destruction OF the weak
er individuals and companies by the great
er ones.
Ex-Judge Gary said that big Industrial
corporations were bringing about trans
fer Of the ownership OF great basic indus
tries from comparatively few 10 the
great number of the people. Instead OF
these corporations being controlled by
few men the ownership lies in widely scat
tered sections.
Steel Corporations Stockholders.
The United States Steel Corporation
alone probably represents upward Of 10000
persons who are the holders Of i;s stock
and bonds" he added. Great numbers OF
persons of various small means are thus
enabled TO share in the profits OF enter
prises whose conduct requires enormous
capital"
In response 10 questions by Senator
Clapp. Judge Gary said the worldwide in
rest was most evident at present in the
United States, but was marked also m
ENGLAND. France. Germany and Austria
Senator Clapp asked II It were not in part
due 10 the methods pursued by the Steel
Corporation and other large industrial cor
porations I'm selling goods cheaper abroad
than at home
Mr. Gary thought not lie said this pol
icy enabled the mills 20 run at greater ca
pacity. lie attributed the unrest OF the
world TO the great increase Of commercial
activity and wealth ana the spread OF hu-
man intelligence.
people are better posted and are doing
more thinking" he said, and added that
there was undoubtedly q just feeling
against those who had used wealth and
power 10 oppress the people.
In the last few years" he said, There
has been much IN the management Of great
business affairs that was wrong Many OF
the great business men. including perhaps
myself. had notions concerning the conduct
Of business which should be changed"
Corporations had developed TO point
where they must he curbed to prevent the
misuse of their power.
when we realize that with the ability 10
accomplish great results is involved the
power TO do great wrong" said Judge Gary,
I'VE must realize also that some plan should
be devised TO protect the public interest
and yet preserve the corporation for the
great good IL can accomplish
congress should test the right Of the
Supreme Court 20 interpret and virtually
make the laws" said Professor John A.
Gray. Of the University of Minnesota, who
followed Judge Gary. We have appaf-
entity come TO point where the national
legislature is about to be abolished. Ihe
courts are interpreting the law, and the
one who interprets the law is actually the
one who makes IT,"
Professor Gray recommended the estab-
Nshment Of commission 70 interpret the
laws. thus forcing on the Supreme Court a
test of that body's powers.
DCMJCc QkpKEP'C CHARGE