Smyrna times., 1911-06-07
WANTS u. S. To
FIX STEEL PRICES
Gary Says Sherman Law Can't
Meet Situation.
RAILS WILL COST MORE

Control OF Prices his ioed FoT tne
Future.
Enforced publiciay and government
tai control of corporations, even as to
prices, must come, declared Judge FL
bert H. Gary, mead of the United
States Steel corporation, when he re-
sumed his testimony before the house
committee investigating the so-called
''steel trust"
Mr.. Gary said he believed TIE Sher'
man antitrust law was too archaic to
deal with modern conditions and never
could fully prevent great combinations
of capital.
What the United States Steel cor.
poration wanted, he said, was some
responsible and official department of
the government to whom it could go
and say: What prices can we charge
and just what can we do?"
In explanation of the reported
worldwide trust" Mr.. Gary said that
a conference would be held in Brus-
sells July 5 and next to organize an
International Steel Institute similar to
the American Iron and Steel Insti-
tute.
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. In
no instance, Mr.. Gary said, had there
been any attempt at an unlawful COM
bination or an expressed or implied
agreement.
Increased prices are to be charged
for steel rails in the near future, ac-
cording to Mr.. Gary. Higher cost of
labor and raw material, together with
a demand for heavier rails, was given
as the reason for the proposed ad-
vance.
Norman B. Ream, Percival Roberts,
James Gayley and w. B. Dickson, di-
rectors of the steel corporation, also
appeared to testify before the com.
mittee.
Personally" said Mr. Gary, 'I be-
lieve the Sherman act does not now
and never will fully prevent the or
ganizing of great combinations of cap
ital. | believe we must come to en-
forced publicity and government con-
troll of corporations"
do you mean government control
even as to prices?" Mr.. Stanley asked
eyes, even as to prices So far as
am concerned, speaking for the United
States Steel corporation, | would be
very glad if we could know exactly
where we stood and could be free
from the dangers and criticism of the
public. | wish we could go to some
responsive governmental source anC
say, Here are our facts; here is oul
business; here is our property and oul
cost of production, and could be tolC
just what prices we could charge ant
just what we could do"
Mr.. Gary said the real problem wal
not the making of big profits, but il
was rather the establishment of 4;
definite understanding of the legal sit
uation.
do l understand that you believ,
in strict governmental supervision o
corporations?" asked Representativ,
Littleton, Of New York. "Yes, / do,
said Mr.. Gary. Il know that is a radi
cal position, but something must b.
DONE
Taking up the subject of the report
ed world trust" and the Gary din
ners" at which it had been intimate
prices were fixed, Mr.. Gary said:
''At the time of the panic in 100
there was great decentralization ten
porarily in the steel business. TIL
fear existed that it would extend an
become dangerous. The iron and stet
industry has been recognized as one {
the leading barometers of trade.
was believed highly important, if pra
ticable, to prevent a greater demoral
Zation in trade"
The situation, he explained cause
jobbers all over the country to appe;
to the corporation to do something
prevent business chaos. Mr.. Gary cal
c1 the steel men of the country t
.ather in New York at dinner
discuss conditions.
He said these dinners of consult
tion had proved so beneficial in mai
tanning the stability of reasonab
prices that representatives of Il
steel interests would meet at Brusse
July and next to determine whet
er an Information Steel Institute sin
lar to the American Institute shou
be organized. He said he would pi
ticipate in the organization Of this
stitute unless he became convinc
that morally or legally it would I
be well to form such an organization
In elaboration of the idea of t
Gary dinners" he explained ii
when the panic came the jobbers h,
large quantities of material for re-sa
and if prices were reduced failui
were certain and prolonged pa
would result.