The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-06-02
GOVERNMENT CONTROL.
Head of Steel Concern Says 1t Is the
Only Trust Remedy.

Washington, June 2.-Elbert H. Gary,
chief executive officer of the U. S. Steel
corporation, resuming his testimony be-
fore the house steel trust investigating
man antitrust law as archaic and de-
clared that governmental control of
corporations eventually would came.
Mr.. Gary asserted that the steel cor
poration would welcome such a change
and would be glad if the government
would go so far as to dictate the prices
of steel products. In explanation of the
reported worldwide trust Mr.. Gary
said a conference would be held in
Brussels July 5 and 6 next to organ
ize an international steel institute sim
liar to the American iron and steel in
stitute. 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 an un-
lawful combination or an expressed or
implied 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, ac-
cording to Mr.. Gary. Higher cost of
labor and raw material, together with
a demand for heavier rails, was given
as the reason for the proposed ad-
vance.
Taking up the subject of the re-
ported international trust and the
Gary dinners, at which it had been in
timated prices were fixed, Mr.. Gary
said:
"At the time of the panic in 1907
there was great generalization tenn
porarily in the steel business. The fear
existed that it would extend and be-
come dangerous. The iron and steel
| industry has been recognized as one
I1fk 1, y afo Of f-od 10
was believed highly important, if prac-
ticable, to prevent a greater demorali-
Zation in trade.
The situation, he explained, caused
| jobbers all over the country to ap-
peal to the corporation to do some
thing to prevent business chaos Mr..
| Gary called the steel men of the coun-
| try together in New York at din
ner to discuss business conditions He
| said these dinners of consultation had
proved so beneficial in maintaining sta
bility of prices that Representatives of
steel interests would meet at Brussels
July next to determine whether an
international steel institute similar to
the American institute should be or
ganized.
! After the discussion as to the supply
Mr.. Garry's attention was directed to
the manufacture Of steel rails. He de-
MED that the steel corporation con-
trolled the prices of rails, adding that
| they could not be sold for less than SIS
a ton.
IN this country" interrupted Mr..
Bartlett.
In reply Mr.. Gary undertook an ex-
PLANTATION of why steel rails could be
sold abroad cheaper than at home. He
said like the merchant who clears his
sh lives once year. by selling his goods
at cost, so the steel manufacturer could
sell his surplus abroad at S26 or cost.
The result will be the mills were kept
running, reducing the cost of produc-
ton, keeping together a compact or
ganization and bringing to this coun-
try large sums of money. The ultimate
effect, he added, was to reduce the
price to the domestic consumer All
! countries practice dumping Mr.. Gary
declared.
} How long has it been since any
country dumped rails on to us?' in.