The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-06-03

He said that the United States Steel
Corporation now controlled only 50 per
cent. OF the steel business OF the country,
a. compared with % per cent. when the
organization took place.
Judge Gary was asked II the steel cor
poration was willing to part with the
Tennessee Coal and Iron Company and
he declared that moral obligations en-
tered into the situation which probably
, would prevent the company from taking
any such action. Investments had been
made and many other things done under
the assurance that the Steel Corporation
was going TO run the Tennessee Coal and
| Iron Company. and Judge Gary did not
feel that II would be just to consider any
such proposition.
DINNER TO LBADRRs IN STEEL
Judge Gary in explaining the dinner
| which he gave TO the leaders In the steel
industry in New York a few years ago
| said that Decentralization OF business.
especially OF the steel trade. had been
threatened by the panic and he felt that
u was necessary to prevent the serious
eject on the steel industry. which he
| regarded IA barometer Of the general
prosperity. He said that he had received
letters from jobbers all over the country
begging him TO exert his influence and
setting forth that they would fail II q
bitter and destructive competition OF the
kind that usually follows depression in
! business among iron and steel manufac-
turers should enstie.
Judge Gary declared that on the one
side the Steel Corporation was presented
with the proposition Of entering into
agreements to crush competitors or on
the other hand devise a plan TO maintain
the stability Of the trade which would
he With In the law He therefore invited
the steel men Of the country q, come
together and TO tell one another what the
| condition of thoir htiaintsa was
In other words" said Judge Gary.
"for the purpose Of having each disclose
to the other all the circumstances sur
rounding his business"
Judge Gary declared that the Steel
Corporation had never controlled prices
and never expected TO control them.
The so-called steel dinner had merely.
through the interchange Of information.
brought about state OF affairs that
tended to stability in the industry.
Il think the average man.. remarked
Judge Gar, would rather pay uniform
prices that are fair and reasonable.
whether they be those OF the grocer or
baker or tailor. than to have the prices
constantly fiuctuating.
Judge Gary said that he considered It
very important that the people should be
protected against great aggregations OF
Personally :" said he. Il believe that the
| Sherman law does not meet and will never
fully prevent abuses. I believe We must
come to enforced publicity and Govern
ment control
| FOR GOVERNMENT CONTROL OF PRICES.
| DO you mean Government control
Of prices?" asked Representative Young. =.
| Il do even OF prices and 30 far "A
am concerned. speaking for. our COM
pany no far a. have the right. would
| be glad il We knew exactly where We
stand. IL We could be free from danger.
trouble and criticism OF tho public and
il we had some place where We could
and say 10 him. Here are our facts and
figures. here is our property. here is our
cost of production: now you tell us what
We have the right to do and what prices
We have the right to charge. ! know
that is a very extreme view and that the
railroads objected to it for long time.
but whether the mere standpoint OF max :
ing the most money ID concerned or not
l believe it is the necessary thing. and It
seems TO me that corporations have no
right 10 disregard these public questions
and these public interests.
is bound to take the place Of competi-
tion2- asked Representative Stanley.
That il my position" said Mr.. Gary.
And that cooperation therefore re.
quiree strict governmental supervisionP-
That is O good statement OF the case.
| ! UtuSVt tiht
lis il your position that the Sherman
antitrust law is all archaic statute deal
ing with a modern situaton?' asked one
member OF the COMMITTEES.
1T is." said Judge Gary.
is it your opinion that that law "a
construed by the court practically orders
a continuance OF tho old warfare OF COM
petition2"
Il am afraid it does.- said MIR Gary.
i do not know that it does. but fear 80.
know by your question you realize the
position we occupy, position thar we
do not like 10 occupy. We do not want
to be dealing in uncertainty. cropping in
dar kness. not knowing what We have the
right to do
"Do you." asked Representative Young.
think that the national Government
under the Constit tuition would have the
right TO fix prices al which corporations
should sell products in interstate COM
merce|
Il have given that good deal Of
thought OF course ] must admit that
am not competent TO answer. but my
opinion is that 30 far as il relates TO inter-
state commerce the Federal Government
has that right
sTRBL CORPORATION WANTED TO KKEP
| PRICES DOWN.
Judge Gary declared that the United
! States Steel Corporation was not in abso-
lutte control and never would be in abso-
lutte control of American ore supplies
He said that the influence Of the Steel
Corporation since it's organization had
been exerted in keeping the price Of steel
rails down. The corporations competi-
tors he said. had frequently tried 10 in
crease the price. but the United States
Steel Corporation had held IL down.
Judge Gary expected. however. that a
raise in prices would he necessary In the
near future He denied that there was
any pool among steel rail producers.
Judge Gary said that II ~as entirely
! feasible to convert the Steel Corporation
into an operating company, including all
; it's subsidiaries.
III there il any reason why We should
do this we should not hesitate said he.
J Judge Gary expressed the opinion that
, it was entirely possible for the Govern
ment 10 undertake the close regulation
Of industrial corporations without II
finally resulting in Government owner
ship:
That has been done" said Judge Gary,
in the case Of banks and railroads"
The committee adjourned to meet next
Wednesday.
COSTS TO BE INVESTIGATED.
IT. - Stccl Has Snput ANN nm AMI tn.