The Mathews journal. (Mathews C.H. [Court House]) 1903-1937, 1911-06-08
CANNOT RULE
GIGANTIC TRUST
President of Corporation Says
Government Should Regulate
Trusts, But That Antitrust
Enactment Fails to Meet
the Demands.
BrOkers Fought Competition-

fou cannot dominate the steel
market" Judge Gary declared. 1T
never mas and never will be domi-
mated. But IL is necessary that there
should be stability of prices. The
users of steel themselves prefer sta
Dlllty. AT the time of the panic the
sherman law had not been Interpreted
and the brokers begged US to form a
combination TO control prices
The panic meant" he continued
that there would be ruinOuS compe-
uuon. We decided the best thing to
10 was TO have the steel men get to-
sether and talk over the subject. and
IN this way each man would know
what the other was doing, and there
would be no ruinOus competition"
May Include World.
Judge Gary told the committee that
there is to be a meeting of steel in
terests in Brussels July 5th-6th, and
that an international steel institute
VIII be talked over at that time, but
that il was not planned to effect a
worldwide monopoly.
WASHINGTON, ID. c., Special
Judge L. II. Gary, executive head of
the United States Steel Corporation,
resumed his testirno ony this morning
before the Stanley investigating com
mlttee conducting an inquiry in an
effort to show that the corporation is
a combination in restraint of trade
Chairman Stanley questioned Judge
Gary as to the American Iron and
Steel Institute. of which Gary is also
the head, and which, it has been
charged, is attempting to effect a
wOrld-wide monopoly of the steel bus
mess. Judge Gary, after denying that
this was the object of the organiza-
uon. which he said is partly social
and partly industrial in character, told
the committee that he would furnish
ut with an outline OF what the real
objects were and what had occurred
at the famous Gary dinner.
First however, Judge Gary took oc-
reports which purported to show that
he had admitted that the United States
Steel Corporation dominates the do
mestic steel business.
L did not mean to say" said Judge
Gary, that it dominates the entire
business l intended TO convey the
idea that the United States Steel Cor
iporation dominated its subsidiary
companies. We, perhaps. control a
little more than so per cent. of the
present domestic steel business"
u. s. Must Control Prices.
Judge Gary then launched into a
recital of the purposes of the Ameri-
can Iron and Steel Institute. in order
to disabuse the minds Of the COM
mittee, he said, Of the impression that
he was attempting to obtain a mo-
nopoly of the steel business OF the
entire world.
Before the witness began his testi-
mony the committee agreed that when
1T adjourns tomorrow il will not meet
again until next Wednesday, in order
that Judge Gary and other officials
of the Steel Trust may return to their
office duties Monday and Tuesday.
Judge Gary startled the COM
mittee when he declared that the
sherman law Is not sufficient TO
meet modern business methods
He said that under the Sherman
law IL Is impossible 10 prevent
illegal combinations, and that
eventually the country must en-
force publicity and Government
control OF prices.
Says Sherman Law Is Insufficient.
Personally" said he. Il believe
that the Sherman law does not and
will not have the power to prevent
illegal combinations. We must come
TO enforced publicity and govern
mental control"
DO you mean governmental con-
troll of prices of large corporations?
asked Littleton, of New York.
Il do" responded the witness. Il
know that this is a departure from
the accepted doctrine of today, but
l am frank to say that ] do not be-
leive that the Sherman law is suffi-
cient for the needs of today and that
eventually the Government must step
in and assume control directly Of
prefer 20 know where we stand. We
would like to have some authority to
whom we might go, presenting facts
and asking to know what prices we
should charge for our products"
Means Destructive Competition.
Then you regard the sherman
law, said Chairman Stanley. mot
withstanding the recent Supreme
Court decision, as an archaic law.
dealing with modern conditions"
THAT is my position" said the head
of the Steel Trust. LAS the situation
is today the Interpretation of the
sherman law means a return to the
old warfare and destructive competi-
ton"
Previous to this testimony Judge
Gary declared that the organization
or the American Steel and Iron Insti-
tute was necessary to steady prices
and prevent many corporations from
being driven out of business.