The Washington times., 1911-12-07
JUDGE GARY SEES
NOTHING UNLAWFUL
IN STEEL DINNERS
Congress Ought to Sanction
These Trade Meetings,
He Says.

Judge e. H. Gary. chairman of the
executive committee of the United
States Steel Corporation, rallied to
the defense of the so-called Gary din
ners before the Senate Interstate
Commerce Committee today. Judge
Gary saw nothing unlawful In these
dinners. which the Department Of
Justice has reflected on in it's brief
in the suit against the Steel corpora
ton.
He went further and declared that
IL there was anything unlawful about
them then Congress ought to make
them lawful.
judge Gary appeared before the
committee today for the purpose of
giving members of the COMMITTEES n
chance to cross examine him with re.
spect to matters he has already dis
cussed. At these dinners, the state
OF trade waS discussed and some con-
siaer them IN the nature Of unlawful
trade agreements.
do not believe these meetings
said .Tndwa ca under the Sherman law"
You believe then that a meeting
W prouucers that leaves each free 10
oon9ouct his business thereafter with.
to price or amount Of sales IL not u no
lawful and should be ENCOURAGED ,"
Civilized Competition.
i do" said Judge Gary.
he then contrasted such meetinps With
cut-thoat competition Of the old fash
ion. This had for its primary object IN
crush out the competitor.
1T resulted in lowering prices for the
time being, but ultimately prices were
enhanced said Judge Gary.
me MODERN competition you speak
OF. or would sanction, is decent. civii,zef
co".T IN tai asked Senator Cummins.
He proceeded to say that IL such meet
jngs as the Gary dinners were not law.
tnl. he would advise Congress to make
Senator Cummlns questioned Judge
Gary about Limitation of capital of con-
Germs In the steel business and askaJ
MIN what amount he would fix as the
ness.
1T is not possible for me to fix the
amount OF capital that a company de-
voted to the steel business should have"
sion that was dealing with that ques-
ton would become competent to fix It,"
Economies Effected.
Judge Gary was asked II the United
States Steel Corpora ton made wire
Company made It.
II believe7it does" said Judge Gary.
He pointed out that the United States
Steel Corporation was continually maxi
ing discoveries that improved and
cheapened manufacturing.
Senator Pomerene questioned Judge
Gary about the conditions in the steel
and iron trade leading up to the forms-
ton OF the Steel Corporation and about
10
what was the original Investment ?"
asked Senator Pomerene.
i can't tell replied Judge Gary. IT
have not the figures On the basis of
the original cost Of the properties in
volyed these companies that were taken
in were overcapitalized. On The basis
OF the value Of the properties and the
overcapitaiized." corporation was not
Judge Gary was questioned by Sem
ator Brandegee as to what he would
established and the United States Steel
license were turned down on the
ground that II was overcapitalized.
7 would appeal to the courts" said
Judge Gary.
Would Make Appeal.
He said he would appeal to the Com
merce Court. as he supposed this would
be the proper tribunal. thought there
should be a way Of expediting cases
before the courts to meet such condi-
toms as arose, for instance, in the
panic Of 1877. when, II there had to be
recourse to the courts, quick action was
needful.
Judge Gary held that the commission
should differentiate in its dealing with
between those in existence
nd those just being formed and that
what might be allowed with respect to
been permitted to grow unchecked.
would not necessarily be allowed in the
IT,