The Birmingham age-herald., 1911-06-09
Need Laws to Protect Large Industries and the Pe0-
 pie Alike
SAYS CORPORATION
 IS NOT A MONOPOLY
Controls Only 0ne-Half of Steel Out9 put-Steel Corporation Is Will ing to Submit to Congress
 and the President

Washington, June S.-Legislation to re- place the Sherman antitrust law so as to protect property interests and tho peoples welfare alike was urged by El- bert H. Gary chairman of the board of directors of the United States Steel cor poraton. in concluding his testimony this morning before the House so-called trust
 Investigating committee. Judge Gary said he hoped the committee in it's report on the investigation would give the United States Steel corporation what the commit- tee thinks ought to be the corporations standing under the law
 T wish" said he that this commit
 tee would take advantage of it's op-
 portunity to suggest legislation and use it's influence 10 bring about the enact
 ment of proper legislation calculated to
 protect government and the people at large, so as to permit business progress along lines of prosperity.
 Constructive legislation is what is needed in this country if we are to re- tain our position in the ranks with com peting nations of the world"
 Would you believe il sensible?' asked Representative Littleton. "to have Con gress appoint a joint committee to hear representatives of capital and labor and so-called restrained and unrestrained trade with view to preparing an anti trust law which would correct features of the sherman law or errors that might have come through court decisions on that law, and to strengthen and elaborate that law"
 ''Yes l do," responded MT. Gary. "and I would be glad to have such an under taking result in something more practical and to be the first one 10 fall In line to live up to such a law"
 The so-called Gary dinners" where steel men of the country acquainted each other with all facts relating to their | business and suggested maintenance of prices to prevent destructive eompeti-
 ton" were delved into by tue eomInittee.
 Representative Beal sought to show that
 the result of those understandings were
 tantamont to a signed agreement to con
 trol prices. violation of the sherman
 antitrust law.
 Dinners Explained "I have stated repeatedly" said Mir. Gary that I believed, and all of us in the steel business believe. 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 the trade and pre- vented destructive competition.
 "The only question involved in those dinners is whether it is good law or good morals to endeavor by friendly inter course. 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
 Presideny should say this is not the right thing toi do, it would not be continued for one minute.
 If the members of this committee be- 1 Ieve it is better for all concerned in this | country for the steel interests to enter into destructive competition than 10 try
 to legally maintain an equilibrium of
 business. it is Up to you.
 | "If you want to take the responsibility | on behalf of the government of saying destructive competition would be better than for the steel interests to confer with each other and for the maintenance of ruinous policies whereby the strong est would survive, the weakest go down and business generally be demoraiized' we will not oppose your action, but we believe we have done the best thing
 
 maintenance of friendly relations
 'Did you not mean to accomplish the l same result, through your friendly Inter | change of ideas at the Gary dinners, as would have been accomplished by illegal agreement to control prices?' asked Rep resentative Beall.
 MT, Gary replied that this was not so in his opinion; that whatever had been done was legal. and that men who at- tended those meetings were left entirely free 10 do as they pleased, but honest disclosures of competitors prices placed men on their honor to seek to maintain nrosperous conditions Mir Lindaberry. counsel for the United States Steel cor poration, referred to the efforts Of the men in the steel industry through the Gary dinners as an attempt to put into practical operation the Golden Rule "The Steel Rule" "You mean the steel rule, dont your asked MT. I.ittleton.
 | MT. Gary said he had made no attempt to disguise the fact that the steel men | of the country sought to maintain prices as near a level as possible through friendly interchange of ideas for the pur- pose of getting between the restraint or | trade and monopoly provisions oi the sherman law on the one hand, and de- structive competition on the other. He had never stood for unchanging prices. he declared, but against wide fluctuations. The recent action of the Republic Iron and steel company in reducing prices. he said. was because officials of that com many had decided not to cooperate with | others in the industry, which proved he thought. that there was nothing binding 1 in the Gary dinner deliberations. 1 MT Gary's attention was again called to lhis former declaration that he favored
 government control of corporations. He
 said he would have the government license Icorporations engaging in interstate com meroe. first deciding whether it was so entitled under the antitrust laws He
 would make the license irrevoSable for
 misconduct. but in all cases would retain
 the right of appeal to the courts. which
 right he added, lis the salvation of this country.
 His opinion of Wall street. was drawn ont when he was asked concerning the capitalization of the United States Steel corporatlon and concerning intrinsic values The capitalization of the steel Icompany he insisted was not too great in view of the additional value given all companies included when they were com bined into one growing. vtalized con- |