Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1911-06-05
JUDGE GARY URGES
FAIR DEALING BY
BIC BUSINESS
SAGE ADVICE FROM
STEEL TRUST CHIEF
Refused to Accept Popular Idea
of Effect of Standard Oil Yer
dict and Predicts Trouble If
1t Were Generally Accepted,

IBy Morning Journal Special Leased wircl
New York, June 4.-The arguments
with which Elbert III. Gary chairman
of the directors of the United states
steel corporation addressed iron and
steel manufacturers who We're his
guests at recent luncheon to dis
cuss the Independent action of the
| Republic Iron & Steel company in
reducing prices. were made public by
him today. They threw added light on
what occurred behind the closed
doors at the Metropolitan club. where
, the conference was held.
MIR. Gary argued for continued co..
operation among the steel makers
and for stability In prices. but his
apparent wishes on the price ques-
ton were overruled by general de-
cision to meet the cuts Of the Repub-
lie company. In his remarks Mr..
Gary touched upon the possibility OF
wage reductions. the value of fair
dealing and frankness In great cor
porations in view of the recent sup
|
oil case.
II have advocated and shall always
advocate. 80 long as | believe / haye
right to do So said Mr.. Gary, rthe
stability of prices, the regularity OF
business conduct on the part OF all
calculated to recognize and advance
the interests of others.
! II have urged you to remember
and ! again call attention to the fact
that when you make substantial re-
ductions In your prices you face the
possible necessity of reducing the cost
of production. including the wages
you are paying to the men in your
employ.
! do not forget that the laboring
men--the employees of the corpora
tions-liave more at risk than the en-
ployers. You have no right to run
the risk of being compelled TO put
their wages below what they ought to
| be, unless you are driven to 1t. and
I hope that whatever may be done
YOU will not reduce the wages until
you feel IL Is an absolute necessity"
Referring TO the bombshell which
the Republic company threw into the
steel market by reducing prices, Mr..
Gary said:
! "One thing we know. that one Of
1.-THE leading iron and steel companies
hitherto joining in our councils, has
! suddenly, for reasons considered good
| by those in charge given no
tice. that for the present at least. 1t
| Is not desirable to cooperate with
| us.
II would not expect or ask anyone
to do anything he believed wrong,
legally or morally, but on the other
hand, ii anyone who has been CO.
operating in a lawful way suddenly
changes his opinion and believes IL is
for his pecuniary interest for the
time being 10 withdraw, then do
not hesitate to say, that so far as ]
am concerned, | am perfectly willing
| to let him stand outside and II j have
sufficient influence II shall not in
the least affect the relations of the
rest.
"In my opinion, IL is highly impor-
tant for the long future that We con-
tnue our relations Of friendship and
open and frank expression.
Il think that SO far as we are con-
cerned we would be largely influenced
by the action of the others: and
while insisting upon the position from
which l have never varied, | would
under no circumstances make an
agreement to maintain certain prices
to divide territory, to restrict output
or TO make any agreement of any
sort with you because as | understand
the law. | have no right to do it,
AT the same time, would do what
/ have always said | would do,
would tell you one and eneh OF you
at any time exactly what we were do
ing | would give you the names of
our customers, | would tell you what
prices we were charging; | would give
you any information concerning our
business. our mills our clients. our
selves that you wanted to have, so
long AK you have the same disposi-
ton toward me.
"On the other hand, If it is youi
opinion that the time for co-opera-
ton has gone by or that II should be
suspended then we ought to find that
out and we will all 30 our way. part
ing as friends. but at the same time
separating entirely.
when demand was great and the
@ paelty was insufficient, we have
prevented prices from going higher.
We have never stood for unreason-
ably high prices any more than we
are willing TO have unreasonably low
prices. What we advocate Is stability
Of prices. That Is why think II IL
Of great importance for each of us
to know all the time what the rest
are doing"
In the discussion at the outset of
his address in The standard oil dacis'
ion, Mr.. Gary said he disagreed with
the statements of some persons that
the supreme court had modified the
Sherman law and had read into that
act the word unreasonable" He
said he was inclined to think that
even II that were true, "the adoption
of that view and conduct based upon
II might result in very great harm
to the business interests of the coun-
try generally"
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