New-York tribune., 1916-05-27
Tells Steel Men Cost of
Defence Is Cheaper
than Conflict.
S. NEEDS COMBINES,
f. N. HURLEY SAYS
Federal Commissioner Anxious
for Government to Cooperate
with Big Business.

Trusts were defended and pictured as
an economic necessity Of the country
by +. ~ Hurley, vicc-c chairman OF the
Federal Trade Commission. at the an
nual dinner Of the Iron and Steel lnsti-
tute at the Waldorf Astoria last night.
He intmated that he thought the GOV
ernment should encourage efficiently
controlled monopollcs as boon 10 the
country rather than menace TO the
people.
Seven hundred and fifty steel and
iron men. representing more than
,000.000.000 in capital. were present.
Speaking on Cooperation and tfi-
cheney in Developing Our Foreign
Trade" Mr. Hurley. outlined the virtual
steel trusts OF Europe, which control
price and output with the sanction
and countenance Of government.
Combines food Things.
Business men. economists and states
men Of the leading commercial nations
Of Europe practically agree that where
industries are efficiently managed and
under proper government regulation
the cartel and syndicate have proved
their desirability from an economic
point Of view" he said, "and have en-
abled those nations to hold dominant
position in the worlds markets
The attitude of this government
toward business had been wrong. I'm
fortunately. our business men and our
government have been losing valuable
time during the last fifteen years he
said. "in trying TO settle our economic
and business problems. not by coopera-
ton, not by any scientific method
which will bring about results bench
cial TO our people as a whole. but by
resorting to the courts
The Federal Trade Commission, Mr..
Hurley said, was endeavorlng to work
out comprehensive, constructive solu-
tion of our business problems. bu~i-
ness and government could cooperate
through trade associations better than
in any other way.
"lf our business men are 10 be fac
tors in the worlds markets" he said,
"they must be encouraged to DO wnat
our foreign rivals arc doing. The Fed
eral Trade Commission has recommend
ed TO Congress that a bill be passed
Giving the American manufacturer the
legal right to form cooperative selling
agencies IN export trade. The commis-
sion does not believe Congress intends
the antitrust laws 10 prevent Amerl-
cans from cooperating in export trade
TO compete effectively with foreigners
where such cooperation does not re-
strain trade within the United states.
No attempt is made 70 hinder American
councillors from securing their due
share Of the trade
Ebert II. Gary. president OF the
institute. in his opening address at
the morning session made plea ior
n return to the protective tarlh 10
foster the merchant marine and 10 pre-
pare the nation.
"If we recall conditions existing
shortly before the war" he said we
know what We may expect AFTER us
close unless there is a change IN our
laws. From the time the present tariH
was enacted until some time after the
war started its effect on our business
was very bad.
"Except for the war and war orders
wages necessarily would have peen
materially reduced, and even then many
employers would have been compelieo
10 suspend. Protection TO industries
by means of tariff laws has built up
the commerce and the wealth OF this
country
Gary Sees Need of Defence.
Mr.. Gary said the merchant marine
also was a field in which the govern
ment mad antagonized business inter
ests. and that conditions would be
worse after the war unless a change
in the law places our merchant marine
on an equality with other nations.
Passing to the subject of peace, he
said: I'VE are in favor Of peace for our
nation. not at any price, but We are
willing to pay literally for it,"
The large majority of the people OF
the United Statea <e said, were de-
termined not to become involved in
trouble with any European power eX-
cept as last resort, and that any
Presidential candidate who mad a con-
trary opinion was doomed to defeat. To
avoid war, he said. We were willing TO
submit to unfriendly acts, sneers and
insults until the hotheads cooled of.
II was not certain. he said, that
there was a universal demand for COM
pete preparedness, but that large num-
bers were awake to the necessity of
diligcnt efforts toward il. The cost
Of defence measures was nothing com
pared 70 losses 10 the country in case
war were thrust upon US because we
were unprepared.
Although there was some falling of
in steel orders, Mr.. Gary said, business
was good and the mills would be busy
for twelve months at least