The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1911-06-03

CONTINUED from First Page)
Jno. Lambert, of the Republic Iron. &
Steel Co.
INFLUENCED PRICES.
Mr.. Gary, asked II the United States
Steel Corporation was in a position tC
fix prices, said that cooperative bust
ness methods which had succeeded
highly competitive methods. had made
1t possible for. the big corporation to
influence prices.
I'VE cannot dominate Them he said
TT is not the big corporations that
change prices so much as the small
corporations that cut prices and force
the big ones to come down
Taking up the subject of the report
ed international trust" and the Gary
dinners at which it had been init
mated 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 1t would extend and
become dangerous. The iron and steel
industry has been. recognized as one
of the leading barometers of trade.
1t was believed highly important If
practicable, to prevent greater de-
moralization in trade"
The situation, he explained, caused
jobbers 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 at dinner to
discuss business conditions. He said
these dinners Of consultation had
proved so beneficial in maintaining the
stability of reasonable prices that rep
resentatives of the steel interests
would meet at Brussels, July s next,
to determine whether an international
steel institute similar to the american
institute should be organized. He
said he would participate in the or
ganization of this institute unless he
became convinced morally and legally
that 1t would not be well to form such
an organization.
In celebrating the idea of the Gary
steel corporation explained that wehn
the panic came. the Jobbers held large
quantities Of material and If prices
were reduced, failures were certain
and a prolonged panic would ensue.
Therefore" said Mr.. Gary, "it was
believed by me at least that it was
not for the best interest of the manu-
facturers, or the laborers or the people
generally that prices be reduced.
"The question was how to get be-
tween two extremes-one of securing
a monopoly by driving out competi-
tor in 4 bitter fight, the other Of
maintaining prices without making an
agreement, expressed or implied.
so in-ited a large percentage of
the steel interests of the country to
meet me at dinner and I presented to
them these views.
'I suggested that the only way we
could lawfully prevent Decentralization
anJ a1sintatE reasonable stead:ness IN
business was for the steel men to
come together occasionally and dis
close to eacI, other all tio circHm-
stances of tbei, h1f,si,ess, Such inter
change prevented Decentralization"
Chairman Stanley directed Judge
Gary's attention to the question of the
controlled the ultimate
supply of iron ore in the United States.
despite his statement in 1908 to the
ways and means committee of the
house seemingly to that effect. indie
pendent manufacturers of steel, ac-
cording to Judge Gary, have large
holdings.
Gary's attention was directed to the
of steel rails. He denied
the steel corporation controlled TIC
prices of rails. adding that they could
not be sold for $2S ton.
ctr this country" interrupted Rep
Bartlett.
Here Mr.. Gary undertook to- show
Why steel rails could be sold abroad
cheaper than ct home. He said that,
ike the merchant who clears his
shelves once a year by selling his
FOODS at cost, so the steel manufac-
urer could sell his surplus abroad at
,26, or at cost The result was the
Mills were kept running. reducing the
,ost of production. keeping together a
,ornpact organization and bringing to