New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-03
Does Not Want Uncertainty.

do not the interpretations of that law
practically order a continuance of the old
competitive system as opposed TO co-opera-
tive modern methodist"
81 am afraid they do" Mr. Gary replied.
we do not want a condition O. uncer-
tainty IN which we do not know just what
we have right to do"
Representative Young Of Michigan. asked
Mr.. Gary if he thought the national gov
eminent had right TO fix prices of com
modites in interstate commerce.
My opinion said Mr.. Gary, lis that so
far as 1t relates to interstate commerce the
federal government has that right"
Mr.. Gary asked IL the United States
Steel Corporation was in a position to fix
prices, said that cooperative business
methods which had succeeded highly COM
petitive methods had made it possible for
the biz corporation to influence prices.
I'VE cannot dominate them" he said 1T
Is not the big corporations that change
prices so much as the small corporations
that cit prices and force the big ones to
come down.
Taking up the subject OF the reported in
ternational trust" and the Gary dinners.
at which It had been intimated prices were
! fixed. Mr.. Gary said
AT the time OF the panic in 1901 there
was great Generalization temporarily In
the steel business. The fear existed that
it would extend and become dangerous.
The iron and steel industry has been rec
oenlzed as one OF the leading barometers
of trade. 1t was believed highly impor-
tant, If practicable. TO prevent a greater
Generalization IN trade"
The situation. he explained caused Job
bers all over the country to appeal TO the
corporation TO do something to prevent
business chaos Mr.. Gary called the steel
men OF the country together in New York
al dinner TO discuss business conditions.
| lie said these dinners Of consultation had
proved so beneficial In maintaining the sta
| bity OF reasonable prices that representa-
! tives of the steel interests would meet ar
Brussels on July and next to determine
whether an international steel institute
similar 10 the American institute should be
organized. lie said he would participate in
| the organization of this institute unless he
became convinced that morally or legally
it would not be we'll 10 form such an or.
| ganlzation.
Explains the Gary Dinners"
| In celebrating the idea Of the Gary din
ners." Mr.. Gary said that when the panic
came the jobbers held large quantities OF
material for resale and IL prices were 70
duced failures were certain and a prolonged
panic might ensue. He continued:
| The United States Steel CORPORATION
| with n 10 httSf ~
the country, thus was confronted with two
propositions We had no right TO en-
desvor 10 preve.:s n reduction in prices
| and maintain the equilibrium Of business
| bv means Of an expressed or implied agree
ment, nor had VIC a lawful right to agree
with our competitors 10 maintain prices
On the other hand. we believed that we
| had no moral or legal right 10 become in
volved in bitter and destructive compe-
| tition such az follows any kind of depres-
| sion in the iron and steel industry, for the
war for the survival of the flttest and
| many persons engaged in the business
would be forced into bankruptcy.
Therefore. il was believed by me- at
least that II was not for the best inter
est of thu manufacturers or the loborers
or the people generally that prices be re-
duced The question was how 10 get be-
tween the two extremes. one OF securing
| a monopoly by driving out competition i'm
bitter fight. the other Of maintaining
prices without making an agreement ex-
pressed or implied.
So ! invited large percentage Of the
steel interests of the country To meet me
AT dinner and ! presented To them these
views.
He said he explained the exact situation
and presented a remedy which was ac-
cepted By the steel men as wise.
II suggested that the only way We could
lawfully prevent such decentralization and
maintain reasonable steadiness in business
was for the steel men to come together oc-
casionally and disclose to one another all
the circumstances OF their business. Such
interchange was done. and continued. and
prevented decentralization. We haven't done
more than that because we could not do
more
Denies Iron Orc Monopoly.
Chairman Stanley directed Judge Gary's
attention To the question " the supply Of
iron ore. The latter denied that his or
ganization controlled the ultimate supply
Of iron ore in the United States. despite
his statement in 1905 10 the Ways and
Means Committee of the House seemingly
10 that effect independent manufacturers
~ steel according 10 Judge Gary. have
large holdings.
After the discussion as To the supply
fudge Gary's attention was directed TO the
manufacture of steel rails. He denied that
the Steel Corporation controlled the prices
OF rails. adding that they could not be sold
for less than sos a ton.
In this country" interrupted Repre-