The Birmingham age-herald., 1911-06-09
MIR. GARY URGES SUBSTITUTE FOR
 ANTITRUST LAWS
CONTINUED FROM PAGE n

not always strictly regarded, particularly in New York There are times when people in market in Wall street pay lit- tie attention to intrinsic values. rerson- ally I do not know much about Wall street. I don't care about Wall street, but l do know that the selling price of securities in Wall street is largely, at times, the result of manipulation. That is sad commentary, but 1t is true. Wall street. MT. Chairman, is a good place for you and to keep away from"
 Carnegie's Values
 MT. Gary was asked concerning state ments of values placed by Andrew Car negie upon his steel properties.
 ''I understand that MT. Carnegie is to be witness before this committed" said MT. Gary with smile, "and l am sure he is a good judge of values, particular ly regarding his own properties. When MT Carnegie appears I am sure this com mittee will hear about some very high values."
 The committee, in excusing Mir. Gary late this afternoon, asked him to hold himself under the subpoena and to return if his presence was desired.
 You know plan to go to Europe" said Mir Gary.
 "Go ahead" said Choirman Stanley. That will make no difference. You will return before long, and if the committee wants you it can get you there'
 James Gayley, former vice president of the Steel corporation, will be the first witness tomorrow.
 Mir. Gary undertook to show that the United States Steel corporation, of which he is the head does not now control as large a percentage of the steel business of the United States as 1t did on the day of it's formation.
 He insisted that as against 60 per cent control of the domestic business in 1901 the corporation at the present time is able to direct only 50 per cent of the domestic output. Of export business, however, MT. Gary said, the Steel cor poration controlled about 90 per cent While on the subject of export busi- ness. MT. Gary referred again to the proposed formation of an international steel institute at Brussels. q hope" he said, that through an interchange of ideas there can be brought about a con- dition of equilibrium in the worlds steel trade.
 T do not want anyone to get the idea that anyone considers securing an agreement. If you will look into the | minutes of our meetings you will see the matter outlined and I think you will see that there is now some dispo- sition on the part of Germany to recog-
 nize our rights from neighborly
 standpoint. The Germans and Belgians
 are the most aggressive and largest | foreign manufacturers.
 MT. Gary insisted there was not a | scintilla of truth in the idea that an
 international trust" was contemplated He said that in arranging for the meet ings he had entertained no thought of | going beyond the rules of propriety or I the law.
 When the United States Steel corpor- ation was formed in 1901, said Judge Gary, the companies actually in compe- tition were the Carnegie Steel com pany, a subsidiary of the Federal Steel | company; the American Steel Hoop company and the National Steel com pany. The American Steel and Wire company, the National Tube company. the American Tin Plate company, the | American Sheet Steel company the American Bridge company and the Lake Consolidated Iron and Mine company were not in competition with each other nor with the companies first named. The principal competition was be- tween the Illionois Steel company and the Carnegie Steel company" said Mr. Gary, in the sense that they were making the same articles, principally rails. But freight rates from Pitts burg to Chicago were so large, nearly s3 per ton, that the markets were fairly well defined.
 '1t Is a fact, though, that the Car negie company did at times compete with the Illinois Steel company out side it's natural market. Once I re- member that the Carnegie sold rails at S16 when the Illinois Steel company was considering going into the hands of receivers and when 1t did actually come near doing that,
 T believe If unrestricted and unre- strained destructive competition had continued, the Illinois Steel company would have been driven out of busi- ness I believe that if the former man. agement had continued in control, the Carnegie Steel company would have driven entirely out of business every steel company doing business in the United States That is the opinion of many people who know the facts. "The conditions showed an improve ment after the Federal Steel company was formed. The point was reached where we believed i. possible to organize company that would be self contained and that would secure a very large pro portion of the export business in steel.
 The United States Steel corporation at the time of it's organization in 1901, said Judge Gary, practically controlled the steel industry. He submitted figures, however calculated to prove that his con trol had been decliing rather than in- creasing.
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