Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-12-07

f.. HI. GARY.
E. H. Gary, head OF the United States
Steel Corporation. testified before the
Senate committee on interstate commerce
today that he always believed that II was
entirely legal for competitors to come to-
gether. mutually disclose their business
conditions to steady and balance trade.
without making any agreement on prices
He urged a federal commission authorized
to consider management. character and
extent Of corporations. and to permit
certain pooling arrangements when con-
ditions warrant.
mo corporation can reach a permanent
success in this country unless 1t ts will
ing to recognize at all times the pubic
interest and welfare saideMr. Gary. He
reiterated that business firms must pc
given some means of knowing what Is
an unreasonable restraint OF trade" be-
fore they take any steps that might make
them liable to federal prosecution.
Wants Law to Be Explicit.
"I would have the law explicit" he
said, 'and permit tho corporation COM
mission to say what agreements would
be permitted"
He suggested that where q financial
panic might confront the steel industry
with ruin. the federal commission should
have power to approve temporary
agreement among all steel manufacturers
to keep the price of rails or other prod
ucts at a certain figure.
"Such agreements, approved by the
commission. and made with full pub
Icity," he explained. would be in the
public interest, preventing business de-
moralization.
II assume that what is needed said
Judge Gary. lis the absolute protection
Of the purchasing public. the public gen.
orally. and any one interested in the busi-
ness; and on the other hand, the protec-
ton of the manufacturing corporation in
the development of its business No cor
poration has the right to object to the
Sherman law If it means. as l tmnk II
does that no combination shall be created
with the purpose of creating monopoly,
or the necessary result Of which shall be
the creation of monopoly; or which snail
be carried on for the purpose or with the
result of unduly restraining trade. II
corporations are prevented from creating
monopOlies or unduly restraining trade,
then the public is protected.
Saws Courts Do Not Know.
The Sherman law leaves every one in
that position added Judge Gary. but
the trouble is that no one not even the
courts. knows what will be an undue
restraint of trade In the daily manage
ment of our business We are uncertain
what is opposed to the public interest, al
the meaning of the Sherman law.
..In times of panic like 1901. said Mr..
Gary. the manufacturers should be per-
mitted to come together tor limited
time to limit their output temporarily,
and to fix certain prices, tne ieoefa. com, ON :,
mission naming a maximum price tilat
would protect the public against over
charges.
Free to Fix Prices.
Mr. Gary then told OF his belief that
the Sherman law was not violated bS
competitors meeting to discuss their pusi-
ness conditions without agreeing on
prices.
Does such meeting leave every one
as he goes out, free to fix his own price,
asked Senator Cummins.
1T does absolutely.
Mr., Gary added that there was no vio-
Iation Of the Sherman law unless there
was an actual agreement made TO sell al
is to the contrary he said
Judge Gary made these suggestions:
Manufacturers should be able to go to
a federal commission In advance and as
certain whether proposed acts or agree
mentS are legal
CORPORATIONS should be forced TO take
out federal licenses.
To state in a law exactly what cor
noratior NAV lawfully do would make the
law SO stringent and limitations so great
that no corporation can reach mutual and
beneficial development
Ready to Stand the Test.
IF the United States Steel Corporation
has not done business in fair way, if
Il Is not doing business fairly noN. | am
willing to concede that there ought t.
he a law TO compel II to- do SO" SAID
MIR. Gary.
1T was formed to do In business way
what think has been done fairly and
honestly since it vas organized. If We
have not done that or are not doing that
# we are of injury to anybody. l con
clude that Congress Or the courts ought
TO stop us.
The United States Steel Corporation. .
said Judee Gary was organized TO pro-
duce and distribute at the lowest cost .
TO increase business not only here but
in the growing export trade, and 10 do
all this in such a way as not 10 injure.
bur to benefit purchasers and employees ;"
senator Pomerene asked If the corpora
ion had not been greatly overcapitaliZed
Y hen formed in 1901.
Basis of capitalization.
ION the basis of the original cost of
the properties involved. ii was undoubt-
edlv overcapitalized," said Judge Gary.
..,1t on the basis of the actual values
of these properties when the United
states Steel Corporation was formed and
the amount it would have cost to re-
Continued on Fourteenth PaSe.)