Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-06-03

at which 1t had been intimated prices were
fixed, Mr.. Gary said:
at the time Of the panic in 1907 there
was great Generalization temporarily In
the steel business. The fear existed that
il would extend and become dangerous
The iron and steel industry has been rec
oRnized as one Of the leading barometers
Of trade 1t was believed highly important
IL practicable, to prevent a greater demon
alization in trade"
The situation, he explained caused job
bers 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 a dinner to discuss business conditions.
He said these dinners of consultation had
proved 30 beneficial in maintaining the sta
bility of reasonable prices that representa-
tives OF the steel interests would meet at
Brussels July mex to determine whether
an international steel institute similar to
the American institute should be organized,
He said he would participate in the organ
ization Of this institute unless he became
convinced that morally or legally 1t would
not be we'll to form such an organization.
Purpose of "Gary Dinners"
In collaborating the idea of the .Gary
dinners = the chief executive of the Steel
corporation explained that when the panic
came the jObbers. held, large quantities of
material for resale and II prices were re-
ducsd failures were certain and prolonged
panic would, ensue.
The United states Steel corporation
with 80 per cent of the steel business OF
the country" said Mr.. Gary, thus was
confronted with two propositions. We had
no right to endeayor to prevent a reduc-
ton in prices and maintain the equilibrium
of business by means of an expressed OF
implied agreement, nor had we lawful
right to agree with our competitors to
maintain prices.
"O1 the other hand, we believed that we
had no moral nor legal right to become
involved in a bitter and destructive com
petition such as follows any kind Of de-
preston in the iron and steel industry for
the reason that II we did 1t would mean
war for survival Of the fittest and many
persons engaged in the business would be
forced into bankruptcy.
Therefore, II was believed by me al
least3 that II was not for the best inter.
est OF the manufacturers or the laboreri
or the people generally that prices be re-
duced. The question was how to get be-
tween the two extremes, one OF securing
a monopoly by driving out competition II
a bitter fight. the other Of maintaining
prices without making an agreement ex.
pressed implied.
so l invited large percentage of the
steel Interests OF the country to meet ms
at dinner and L represented to them thes
views"
Mr. Gary said he told the exact situa
ton and suggested a remedy which was &C
cepted by the steel men as wise.
81 suggested that the only way W
could, lawfully prevent such demoralizastio
and maintain reasonable steadfness 81
business was for the steel men to come to
gether occasionally and disclose TO eac
other all the circumstances OF their bust
ness. Such interchange was done and con
tinued and prevented decentralization. W
have not done more than that because W
could not do more"
Denies Control of Ore supply.
Chairman Stanley directed Judge Gary
attention to the question Of the supply @
iron ore. The latter denied that his oil
ganixation controlled the ultimate suppl
OF iron ore In the United States despite hi
statement I'm 1903 TO the ways and mean
committee of the house seemingly to this
effect. Independent manufacturers, a,
oordlhg 20 Judge Gary, have large holding
After the discussion as to the supply
Judge Gary's attention was directed to II
manufacture OF steel rails. He denied tn,
the steel corporation controlled the pric,
Of rails. adding that they could not
sold for less than SIS a ton.
in this country" interrupted Mr.. Bar
lett.
In reply Mr.. Gary undertook an e
PLANTATION OF why steel rails could be so
abroad cheaper than at home. He sa
that, like the merchant who clears h
shelves once a year. by selling his gool
at cost, so the steel manufacturer cou
sell his surplus abroad at S26 or at cost. II
result was the mills were kept runnin
reducing the cost Of production, keepiI
together compact organization and brin
ing 10 this country large sums OF none
The ultimate effect, he added. was to I
duce abe price to the domestic consume
All countries practice dumping" N
Gary declared
"How long has It been since any count
dumped rails onto us?" inquired Chairml
STANLEY.
I'M about 1904 OF 1905 or 1905" came L
response slowly. Last year some ra
were dumped on the Pacific coast"
Trying 10 Take Middle Course.
Representative Littleton, taking up Il
examination OF the witness. inquired II
was not true that the steel manufacture
were trying to steer 4 nice course betwe,