STEEL TRUST INQUIRY.

Evening Star, Issue 14637, 5 August 1911, Page 3

STEEL TRUST INQUIRY.

MR GARY AND STATE CONTROL. Mr Gary, president of the United States Steel Corporation, was a witness recently (Reiner's Washington correspondent telegraphs) before tlm Steel Trust Inquiry Committee of the House of Representatives lis declared that enforced publicity unci Government control of corporations must come, even in the matter of prices. In hi* opinion the anti-trust law -was too archaic to den! with modern situations, and could not fully prevent great combinatione of capital. What the United Steel Corporation wanted vrae tho establishment of aoitw responsible department of the Government to which they could look for the ultimate control of prices and operations. Questioned regarding the so-called International Steel Trust and dinner* given by Mr Gary, at which it had been intimated that steel prices were fixed for the United States, the witness said that at the time of the financial panic of 1907 there was gTeat demoralisation in the steel business. The iron industry was recognised as tho barometer of the trado. and jobbers tho country over had appealed to the Corporation to do something to prevent chaos. Ho thereupon called tho steel magnates of the country together, to dine and discuss the condition?. Thus began tho American Iron and Steel Institute, which was organised to permit of the exchange of ideas for the betterment of the steel industry. In no instance had there been any attempt at an unlawful combination or an implied agreement with regard to prices. These consultations proved so beneficial in maintaining the stability of prices that representatives of tho stee! interests of the world were to meet at Brussels on July 5 and 6 next to determine whether an International Steel Institute, similar to the American Institute, should be organised. Mr Gary declared that he would participate in the organisation of this institute unless ho va* convinced of the existence of moral or legal obstacle* in the way. Mr Gary predicted that there- -would be an increase in the prices of steel rails in tho near future, owing to the higher cost of labor and raw materials, together with tho demand for heavier rail*- There was no agreement, with foreign companies on the policy of non-interference with their respective 'businesses. On the contrary, ho declared that the Trust had sold rails abroad occasionally below tbe cost of producing them. Thia, howavsr, was not froquerrtly done, and when it was it wbo only Sot the purpose of .clearing »tock. In adYocaiing, «* Mr Rooeevelt ha« d*a». Government control and supervision of the great combinations, both as regards their capital and tbe regulation of prices, ilr Gary said he considered this was a positive necessity. "We would ail know w-here wo stood then," .be continued, " and, personally, I would be very glad if the- Steel Corporation could go to a responsible authority, appointed by the Government, and say "frankly : ' Hero are tho facts; tell us what we Should charge for -euch-amtr-sucb j>rod«ota-' "