Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1911-06-08
GARY WANTS i. 5.
To FIX ALL PRICES
Steel Magnate Advises Federal
Control OF Corporations.
SHERMAN LAW Is ARCHAIC
Tells House Committee Enforced Pub
LEFTY and Governmental Regula-
ton Alone Can Put an End
to TRUSTS"

Washington. = That the United
States Steel corporation aided J.
Pierpont Morgan in averting more
serious financial troubles in 1907 was
the declaration made by Ebert H.
Gary, chairman Of that corporations
directorate, before the Stanley COM
gressional steel trust investigating
committee.
He insisted, challenging the state
ments Of John w Gates before the
committee, that the purchase by the
steel corporation Of the Tennessee
Coal and Iron company at that time
was made at price more than it was
worth, for the express purpose of pre-
venting the crash Of the New York
banking firm of Moore & Schley.
Mr.. Gary related a dramatic story
Of the momentous events which pre-
ceded the absorption of the Tennessee
concern. He described in detail how
he and Henry c. Frick, at the instance
of Mr.. Morgan, had revealed the plan
of buying the company at a price
greater than its value to President
Roosevelt and Mr.. Root, then secre-
tary Of state. He told how he had
concluded, after their interview with
Mr.. Roosevelt, that any government
prosecution of their act would have
been an outrage"
Mr.. Gary made many surprising
statements during his eight hours ex-
animation, but none more startling
than his declaration that government
control and publicity of corporations
in this country must come. He said
that through the American Iron and
Steel institute, the heads of the steel
industry were trying to steer a course
between the Sherman antitrust law,
which he characterized as archaic"
on the one hand, and the old-time
methods of destructive competition On
the other, in order to operate for the
public welfare
Mr.. Gary announced to the commit
tee that he wanted everything known
concerning the steel corporation, and
more than all, he pleaded for some re-
spOnsible government source to which
a necessary great corporation could
appeal for guidance in the conduct Of
its business He agreed to furnish the
committee SO much that it wishes to
know that he will be recalled when it
meets again next Wednesday. Others
who have been summoned to appear
are w. B. Dickson of the steel corpora
ton and John Lambert of the Repub-
lie Iron & Steel company.
In explanation of the reported or.
ganization Of worldwide steel trust,
Mr.. Gary said that a conference would
be held in Brussels, July and 6, 1911,
TO organize an international 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. He admitted that as a re-
suit of dinners he gave steel men in
New York city the stability Of reason
able prices" Of steel had been main
tanned.
In no instance, Mr.. Gary said, had
there been any attempt at an unlaw-
full combination, or an expressed or
implied agreement
Mr.. Gary said he would do all he
could to further the proposed iaterna-
tiOnaI institute unless he was con-
WINGED it was legally or morally wrong
Increased prices are to be charged
soon for steel rails, according to Mr.
Gary. Higher cost of labor and raw
material, with a demand for heavier
rails, was given as the reason for the
advance.