Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1911-06-10
Gary Wants Government
to Fix Steel Prices.
RAIL RATES TO ADVANCE
Mead of Trust Says the Sherman
Law is Archaic and Declares
For Federal Regulation
and Publicity

cd States Steel corporation Is willing
10 let the government run its prices
was declared by Chairman Il. III. Gary.
it's head
Testifying before the house investi-
eating committee, Judge Gary said
enforced publicity and government
control of corporations must come,
even as to prices.
Mr.. Gary said he believed the 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 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.
N n
for steel rails in the near future, &C
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, d.
rectors of the steel corporation, also
appeared to testify before the COM
mittee.
Personally" said Mr. Gary, Il 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-
trOi OF corporations
do you mean government control
even as to prices?" Mr.. Stanley asked.
"Yes, even as to prices. So far as
am concerned, speaking for the United
States Steel corporation, | would re
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 and
say, Here are our facts; here Is our
business; here is our property and our
cost of production. and could be told
Just what prices we could charge and
just what we could do"
Mr.. Gary said the real problem was
not the making of big profits. but it
was rather the establishment OF a
definite understanding of the legal sit
nation.
Doesn't Want Uncertainty.
do l understand that you believe
In strict governmental supervision of
corporations" asked Representative
Littleton, of New York Yves, do"
said Mr. Gary. Il know that is a radi-
cal position. but something must be
done" - Ct a
'~2zAaKi--g up the subject of the report
ed world trust" and the Gary din
ners" at which it had been intimated
prices were fixed, Mr.. Gary said;
cat the time of the panic in 1907
there was great Generalization tenn
porarily in the steel business The
fear existed that it would extend and
become dangerous. The iron and steel
industry has been recognized as one of
the leading barometers of trade. II
was believed highly important, if prac-
ticable, to prevent greater demorali-
cation in trade"
The situation, he explained. caused
jobbers all over the country to appeal
to the corporation to do something to
prevent business chaos. Mr.. Gary call
ed the steel men of the country to-
gether in New York at a dinner to
discuss conditions.
He said these dinners of consulta-
ton had proved so beneficial in main
tanning the stability of reasonable
prices that representatives of the
steel interests would meet at Brussels
July and next to determine wheth-
er an Information Steel Institute SINH
lar to the American Institute should
be organized. He said he would par
ticipate in the organization of this in
stitute unless he became convinced
that morally or legally it would not
be well to form such an organization.
In elaboration of the idea of the
Gary dinners he explained that
when the panic came the jobbers held
large quantities of material for resale,
and if prices were reduced failures
were certain and prolonged panic
would result.