Arizona republican., 1911-06-09
THOSE LITTLE DINNERS
He Believes That They Served to Prevent a De- moralization of Business by Maintaining Equilibri- um in Steel Trade.

Washington, June S.-Legis;ation to replace the Sherman antitrust law. to protect property interests and the peo- ple's welfare alike was urged by FL bert H. Gary. chairman of the board of directors of the United States Steel corporation in concluding his testi- mony today before the house So-caIled steel trust investigating committee Judge Gary said he hoped the commit tee in its report would give the United States Steel corporation what he thinks ought to be the corporations standing under the law.
 T wish,' said he. this committee would take advantage of its opportuni- ty to suggest legislation and use it's influence to bring about the enactment of proper legislation calculated 10 pro- tect the property interests of the coun- try, the interests of the government and of the people at large, so as to permit us to continue business progress along the lines Of prosperity"
 Would you believe it sensible?' he was asked by Representative lLttletOn. ito have congress appoint a joint com mission to hear representatives of capi- tai and labor and of so-called re- strained and unrestrained trade with a view to preparing an antitrust law which would correct features of the Sherman antitrust law or errors that might have come through court deci- sions on that law, and to strengthen and elaborate that law?
 Yes, I do." responded Judge Gary, and I would be glad to have such an understanding result in something more practical and to be the first one to fall in line and live up to such a law
 The o-called Gary dinners where steel men acquainted each other with facts relating to their business and suggested the maintenance of prices to prevent destructive competition" were delved into by the committee. Repre- sentative Beall sought to show that the result of these understandings was tantamount to a signed agreement to control prices and a violation of the sherman antitrust law.
 T have said repeatedly" said Mr. Gary, that I believed. and all of us in the steel business believed, that open and frank disclosures to each other of our business conditions and suggestions as to the best interests of all. brought about an equilibrium in trade and pre- vented destructive competition.
 The only question involved in these dinners is whether it is good morals to endeavor by friendly intercourse such as has been described by me, to maintain to a reasonable extent. an equilibrium of business and prevent destructive competition.
 If the department of justice or the president should say that this is not the right thing to do it would not be continued for one minute. If the mem bers of this committee believe it is better for all concerned in this country, for the steel interests to enter into de- structive competition than to try legal ly to maintain an equilibrium of busi- ness. it is up.tO you.
 If you want to take the responsibili- ty on behalf of the government of say ing that destruction would be better than for the steel interests to confer with each other. and if you favor the maintenance of ruinouS policies whereby the strongest would survive, the weakest go down. and business gen. orally be demoralized. we will not op- pose your action. but we believe we have done the best thing we could do under the law through the plainten- ance of friendly relations"
 Did you not mean to accomplish the results through your friendly inter- change of ideas at the Gary dinners as would have been accomplished by an illegal agreement to control prices ?" asked Representative Beall. MT. Gary replied that this was not so in his opinion.
 Whatever had been done was legal and that the men who attended these meetings were left entirely 10 do as they pleased. but honest disclosures of competitors prices placed the men on honor to seek to maintain prosperous conditions.
 The recent action of the Republic Iron X Steel company in reducing. he said. was because that company decided not to cooperate with the others in the industory, which proved that is thought there was nothing binding in the Gary dinner deliberations.
 His opinion of Wall street was drawn out when he was asked concerning the capitalization of the United States Steel corporation and concerning in trinsic values. He said. Personally I do not know much about Wall street