Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1911-06-09
WANTS u. s. 70
FIX STEEL PRICES
Gary Says Sherman Law Can
Meet Situation.
RAILS WILL COST NOR
Enforced Publicity and Government
Control Of Prices His Idea For thu


Future.
Enforced publiciay and government
tai control OF corporations, even as t
prices, must come, declared Judge FL
eert H. Gary, head CT the United
sta es Steel corporation, when he re
sumed his testimony before the house
committee Investigating the so-cal.e.l
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 car tai
What the United States Steel cor
porItion 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?"
Ii explanation of the reported
worldwide trust" Mr.. Gary said that
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.
TIE latter, he asserted, was formed
to prevent decentralization in trade and
to permit All 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
demand for heavier rails, was given
as the reason for the proposed adj
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, 81 be-
lieye the Sherman act does not now
and never will fully prevent the or
eaniZing of great combinations of cap
ilal. | 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 l
am concerned, speaking for the United
States Steel corporation, | would be
very glad il we could know exactly
where we stood and could be free
from the dangers and criticism of the
public. l 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
uation
do I understand that you believe
in strict governmental supervision of
oorporations?" asked Representative
Littleton, of New York. Yes, l do
said Mr.. Gary. Il know that is a radi-
cal position, but something must be
done"
Taking 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:
Eat the time of the panic in 1907
there was great decentralization 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. 1t
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 5 and 6 next to determine wheth-
er an Information Steel Institute SIM
lar to the American Institute should
be organized. He said he would par
ticipate in the organization of this in
sritute 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 a prolonged panic
would result.