The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-06-04
EXPLAINS IN FULL
CAUSE AND OBJECT
OF GARY DINNERS
Controlling Genius Of Steel
Trust Completes His Dr.
rect Testimony
MANY BREAK FAITH
AND DINNERS ENDED
Announced Various Prices and
Then Secretly Made Cuts
Fl riendly Contact Of
Competitors Valuable

NEW YORK, June 3.-Judge E. II.
Gary. chairman of the board OF de
rectors of the United States Steel corr
poration. and is controlling genius
completed today his direct testimony
at the hearing of the federal suit to
dissolve the big concern that largely
was the result of Gary's own PLAN
ming.
In the course of the day he ex-
planned the object of the so-called
Gary dinner" denied his corpora
ton ever fixed the price of rails in
a manner that Influenced other rail
manufacturers, insisted he never had
any knowledge of the Jackson wire
pool until 1908, and outlined the poll
icy of his corporation in regard to
publicity, and in complying with the
desires of the federal government.
Emphatically at the end of his testi-
mony. he asserted that the corpora
ton had benefited the steel trade Of
the country, had increased compett-
ton and helped the smaller concerns
Originated i'm 1907.
His explanation of the Gary din
ner" was detailed The idea. he said,
originated in his own mind in the
panic OF 1907. as a means of prevent
ing a complete Generalization Of the
steel and iron business that undoubt-
eddy would have prolonged the evil
effects of panics. Had prices of steel
and iron suddenly dropped, he said.
and the trade become demoraHzed,
as In previous years, loss and perhaps
failure to many corporations would
have followed. IAN old fashioned
steel war" he said. meant destruc-
tive competition and ruin to many
people"
THE object OF the dinner" he said.
was to bring together in friendly
contact the men engaged in the iron
and steel industry. There Is nothing
like close contact with q competttor
to secure fair and decent treatment -
Gary said he called the manufac-
turers together to establish a friendly
feeling first, TO induce them to tell
frankly what they We're doing as to
prices and wages, and of exchang-
ing Information as to policies. and tho
like. The witness said that the aim
or the meeting was not to arrange
an agreement as to prices. or any UNI
Outstanding as to the maintenance Of
prices. He said that opinions were
expressed at the first dinner as to
whether prices were fair and reason
able. but nothing more. The witness
denied that the various committees
appointed had any understanding al
to fixing prices of various steel and
iron products.
Partial Failures
Judge Gary said that the meetinrH
and dinners did not bring about the
conditions he had hoped. but they did
have an effect in preventing an utter
decentralization of the business, and
of wide and sudden fluctuations He
said that various companies an
nounced various prices. and then made
sales secretly at lower prices. For
that reason, he said, ne announced
in 1909 that he would withdraw from
further communication of his corpora
ton policies to other manufacturers
He said, however. that his corporation
always made 1t a point to avoid COM
peting for trade at low prices in cer-
tain territories
In answer to the question as to
whether the steel corporation ever
made, or attempted to make, any ar
rangement with foreign producers In
regard to the price OF rails, Gary said
that neither he nor his corporation
ever did such a thing. He said there
was no agreement with foreign cor-
porations. to stay out of the American
market The American made rails.
said Gary, are superior to the for
eign rails.
Concerning the fact that the price
OF Bessemer rails has not changed
since May, 1901, Gary pointed out that
the price was maintained, not through
any understanding or agreement, but
that the price had been kept down be-
cause the Steel corporation refused to
advance its figures.
The jackson Wire Pool.
Judge Gary said the first he knew
OF the Jackson wire pool was in 1904.
A man told him about ii, he said, and
he caused an investigation to be made.
Il at once ordered it broken" he
said. That was about two and =
half years before the pool indictments
of other steel products than rails, the
witness explained. was not due to any
agreement, but to various business
conditions. In answer to further Queo-
tons Gary explained that there 4re
10000 holders Of stock in the Steel
corporation. OF whom about $4,000 In
round numbers are employees.
Taking up the point of publicity a4%
the request of his attorney. Gary told
of the efforts that the corporatt08E
has made to publish its affairs. HoAs
explained the publication of varfOu6ns
monthly. quarterly, and annual stats
ments and of the readiness at I'LL
times to keep the government ofnciaIo
informed. sssg
He related next the details OF M
visit to the White House to see Pres
ident Roosevelt. in 1905. when Come
missioner of the Bureau of CorporrES
tions Garfield, and others. were pfe14
ent. The meorandum OF that vieS1
prepared by Garfield. and introduco
in evidence, quoted Judge Gary
saying his corporation desires Is c1sE
operate with the government in svG1s
way" Ssz&
Judge Gary asserted that no p31S
son ever was elected q director az M III
Steel corporation because he wAs =
rector in some other corporati0n.
Judge Gary will be cross-exAml1
tomorrow.