New-York tribune., 1911-11-30
Would Have Government Con-
troll Them, Even to the
Fixing Of Prices When
Necessary.
WANTS TRADE COMMISSION
With Power to Supervise Big
Business-One Defect in Sher-
man Law-Too Much Pol
itics for Business
Interests.

corporations IL resembles suggestions
that have already been made to the COM
mittee I'm providing for federal incorpo-
ration and the establishment of COM
mission, from which appeal may he taken
70 the proper courts. 10 supervise the
activities Of corporations as to owner
ship. management and methods Of husi-
ness. even To the fixing of prices when
necessary.
Judge Gary carefully avoided any
statements that might have been inter-
preted as bearing on the bill Of COM
plaint fled by the government i'm the
suit against the Steel Corporation
There ought not 10 be any objection
10 the principles Of the Sherman anti
trust law" he said There should not
he created any monopoly for the purpose
of restraint Of trade, nor any restraint
Of trade which interferes with lawful
competition.
There appeared 10 be q difference Of
opinion between Judge Gary and certain
members Of the committee as 10 what
constituted lawful competition. Pressed
for an explanation Judge Gary said that
there was one defect i'm the Sherman
laU.-the conflict between the first and
the second sections. The first section, he
explained forhids monopoly The sec
ond section forbids restraint Of trade. In
the latter case. If the law is invoked, ne
rointed out. the corporation having the
Lest position would drive its competitors
out OF business thereby running the risk
of finding itself iu conflict with the first
section of the law, prohibiting monopoly.
That has been my particular difficulty
nm these years" he said. 81 have en-
deavored - keep away from a monopoly
and in come cases have fostered compe-
tition have refused to make an
agreement"
Judge Gary then explained that to
avoid running competitors and laying the
corporation open 70 the charge Of ao-
1uirine a monopoly It was necessary 10
have some sort Of explanation of pur-
poses.
That is what the Gary dinners were
for" he added. we gathered around
the table to discuss our affairs. Every
gentleman there, if he was a gentleman,
could 90 away with full knowledge of
his competitors affairs and could shape
his business so as not 10 ruin his com
petitor."
Afraid to Hold Gary Dinners Now.
He added that he had not dared even
to hold these conferences lately; that
there was no means Of knowing exactly
what constituted a violation Of the Sher-
man law. and that some government
commission ought TO have the power to
pass on agreements or mergers that
would rebound TO the public good, and
a. the same time benefit the industrial
interests concerned.
"rhe difficulty" he said. lis the un-
certainty over the things We might do.
The declarations Of some Of the leading
statesmen Of the country have not been
the same. Opinions of judges have not
been the same. If the Department of
Justice or the Department Of Commerce
and Labor viii show MS where we are
wrong Wen get right. That has always
been our position. / am not trying 10
put the steel Corporation on pedestal
II is simply good policy
Big corporations are essential to the
dcvcIoument Of the country and the main
tonauce of business prosperity Judge
Cary said. To prevent their misusins
tho enormous power that comes with
wealth ana control Of industrial agencies,
h. tboucht the government should take
control Of them through a corporation or
trade commission with absolute power
o. regulate their affairs. Add to this
clear Jaw as 10 what can and what
cannot bc done the strong light of pub
Iicitv on ali the affairs of corporations
and the elimination Of Presidential and
other political issues from the business
world and the unrest that has spread
over the United states VIII largely dis
appear he believed.
Election Disturbing Business.
The coming election is already disturb
ine business. he added lie said members
OF the courts ought 20 be appointed Tor NE ,
that the President ought 10 be elected fo4
eight years without the privilege OF re-
election go that ne would be In a position
ana frame OF NINA NltlN h' ""N'N 49,
be tcmpted % TOOK in any direction or
toward any interests" IN seeking reelection
Judge Gary dwelJ at length on the po-
Hucal situation Re said he had no par
tlcular President IN mind, but believed
fewer elections and less reason for seeking
public or private support for political pur-
poses would aid greatly in keeping business
an "a level At the present time, he SAID
there was a great curtailment Of business
activity because Of the approaching election
Judge Cary recommended the federal
license Of corporations. their control by a
trade commission, the publicity Of all their
affairs and the sanction Of certain acts
which the commission might consider not
10 be restraint Of trade This federal
license. he thought, would prevent over
capitalization and discrimination In cases
between persons and localities. The COM
mission should have power TO grant sus-
pend and revoke licenses subject 10 right
Of appeal TO a court II should also have
power 10 decide questions submitted by
managers Of business organizations who de-
sire 10 avoid Illegal actions, and 10 regulate
prices as far as necessary to prevent mo-
.opoly and restraint of trade.
Tor example ne said. III prices should