The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1911-06-09
Witness Before Investigation
Committee Has Another
Version of It
ADMITS COMPANIES CONFERRED
WITH RAILROADS As TO PRICES
Gary Believes That Legislation Should
Be Enacted to Replace the Present
Sherman Antitrust Law-yoices
Opinion Before Investigators.

Washington. June 9-James Gayley,
former vice president OF the United
States Steel corporation, was inter-
rogated today by the steel trust COM
mittee Of inquiry. Gayley. whom Mr..
Cary told the committee was a prac-
tical steel man, gave information on
many technical matters relating to
the steel business. Gayley was for
merly in the Carnegie Steel compan n.y.
Denial that Andrew Carnegie by
threats compelled the formation of the
United States Steel corporation, and
an acknowledgment that the steel
companies before that organization
counseled with the railroads as to the
price of steel, marked the testimony
of James Gayley.
Gayley said such understandings
with the railroads were necessary to
prevent monopoly in the steel busi-
ness and denied that Carnegie, as
charged by John w. Gates, had "held
up" j. Pierpont Morgan, and in so
doing had forced steel manufacturers
to combine.
Replace Sherman Law
Legislation to replace the Sherman
antitrust law so as to protect prop
erty interests and the peoples inter-
ests alike, was urged by Ebert H.
Gary, chairman Of the board of direc-
tors of the United States Steel cor
poration, in concluding his testimony
yesterday before the committee.
Judge Gary said he hoped the COM
mittee, in its report on the investiga-
ton, would give the United States
Steel corporation what the committee
thinks ought to be the corporations 8
standing under the law,
II WISH" he said, that this com.
mittee would take advantage Of rs
opportunity to suggest legislation and
use its influence to bring about the
enactment of proper legislation calcu-
lated to properly protect the property
interests of the country, the inter-
ests of the government and the peo-
pie at large, so as to permit US to
continue business progress along lines
of prosperity. Constructive legisla-
tion is what is needed in this country
if we are to retain our position in the
ranks with competing nations Of the
world"
would you believe it sensible" /"
Representative Littleton asked, "to
have congress appoint joint COM
mittee to hear representatives, of capi-
tai and labor and of so-called re-
strained and unrestrained trade with
view to preparing an antitrust law
which would correct features of the
Sherman law or errors that might
hnye come through court decisions on
that law. and to strengthen and elab-
crate that law"
Eyes, l do," Mr.. Gary responded,
"and 1 would be glad to have such an
undertaking result in something more
practical and to be the first one to
fall into line to live up to such law"
The so-called Gary dinners" !"
where steel men of the country ac-
quainted each other with all facts re-
lating to their business and suggest
ed the maintenance Of prices to pre-
vent obstructive competition" were
delved into by the committee. Repre-
sentative Beall sought to show that
the result Of those understandings
was tantamount to "a signed agree
ment to control prices, violation of
the Sherman antitrust law.
"I have stated repeatedly" Mr..
Gary said, "that believed and all Of
us in the steel business believed, that
open and frank disclosures to each
other Of our business conditions, and
suggestions as to the best interests
of all, brought about an equilibrium
in the trade and prevented destruc-
tive competition.
"The only question involved in
those dinners is whether it is good
1o1,, or oood morals <o ondoovor hv
friendly intercourse, such as has
been described by me, to maintain to
a reasonable extent, an equilibrium
of business and prevent destructive
competition"