Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1911-06-02
VS.
COMPETITION
President Gary of Steel Trust
Declares Competitive
System Dead
FASTENING LoR|MER PROBE
Proposed Democratic Wool Sche.
dule Introduced In House
This Afternoon.

Grafton, resuming his testimony be-
fore the house "steel trust" investigat-
ing committee today denounced the
Sherman antitrust law as archaic and
declared that governmental control of
corporations eventually would come.
Mr. Gary asserted that the steel cor
poration would welcome such a
change ad would be glad if the gov
ernment would go so far as to dictate
the prices of steel products.
In explanation of the reported world
wide trust, Mr.. Gary said con-
ference would be held in Brussels July
5 and next to organize an Interna-
tional Steel Institute similar to the
American Iron and Steel Institute.
The latter he asserted, was formed
to prevent decentralization in trade and
to permit an exchange of ideas for the
betterment of the steel industry
In no instance, Mr.. Gary said, had
there been any attempt at unlawful
combination or an expressed or inn
piled agreement.
Mr.. Gary said he would do all he
could morally and legally. to further
the proposed international institute.
Increased prices are to be charged for
steel rails in the near future, accord
ing to Mr.. Gary. Higher cost of la.
bor and raw material, together with
demand for heavier rails was given
as the reason for the proposed ad,
vance.
Mr.. Gary asked if the United States
Steel Corporation was in a position
to fix prices, said that cooperative
business methods which have succeed
ed highly competitive methods, had
made it possible for big corporations
to influence prices.
I'VE cannot dominate them,' he
said. 1T is not the big corporation
that changes prices SO much as the
small corporations that cut prices and
force the big ones to come down"
Mr.. Gary undertook an explanation
of why steel rails could be sold abroae
cheaper than at home, He said, like
the merchant who clears his Shelves
once year by selling his goods al
cost, so the steel manufacturer coulc
sell his surplus abroad at $26, or al
cost.
The result was the mills were kep1
running, reducing the cost OF produc
ton, keeping together a compact or
ganization and bringing to this coun
try, large sums of money. The ulti
mate effect, he added. was to reduce
to price to the domestic consumer All
countries are practically dumping
Mr.. Gary declared.
Representative Littleton. taking VI
the examination of the witness inquir
ed if it was not true that the stee
manufacturers were trying to steer
nice course between the Sherman an
thrust law on the one hand and th'
obstacles of competition on the other
1T is" replied Mr.. Gary. Il wish We
knew how we could rightfully and law
fully do it,
Then you think, in the light OF thu
experience of the last ten years tina
present prices cannot be maintained
for another long period and still avoit
the sharp corners of the Sherman
law" Mr.. Littleton asked. Il 10 no
think it can be DONE said Mr.. Gary
There is such diversity of interest,"
in the steel business that it seems T.
me that there must be some way de
vised to allow the manufacturers t
| protect themselves from obstruetlv
competition that will drive manufae
turers out of business or else we VII
be in chaos"
Then" continued NJ. Littleton, "d'
you believe there is no way competl
tion can continue freely and the stee
| business develop and result IN Dene
fit to the consumer" Il don't thin
it can, except under government con
troll said Mr.. Gary.
"You think then the time has com
! when we must surrender the compel
! tive method in business for accep
iance of a new policy in big busines
/ affairs?" 1T seems to me it has,
The Menace Of Free Wool.
i Special to the New Mexican.
Washington, June 2.-Under tn
Underwood tariff bill, billion pound
of wool may enter the United State
from Mexico, Central and South Amel
lea. Australia, paying less than nal
the present duty from January ! mex
! Senator Borah in his reply to Senate
Stcne Of Missouri, said that 1t Woul
appear as if Bryan was member
the present congress, owing to mis- a
.iyities around the halls and corrldol
I of congress. Local papers pictui
Miss Democracy and Mr. Harmon
about to join in wedlock. Bryan Sill
up behind and fells Harmony TO u
earth with a big club marked "Fr'
WOOL"
II Enqle Power Plant.
Washington, d. c., June Bids II
a steam power plant at Elephant But
were let today as follows: Electric
equipment to the Gen4raE Eectr
II company, Schenectady, N. Y. $3l,37
t steam equipment to W. 3. Anderso
i FL Paso, $44,25S.9O Time, 80 days.
ii The Arizona Brewing Company
slPrescott. has filed with the intersta
II commerce commission complaint
klleging excessive rates on matt Iro
Continued on Page 81