Show 5 GARY OARY ADVOCATES t. t i FEDERAL CONTROL 11 I 1 Big Corporations Defended b by Y United States Steel Chief Executive tHE HE E FAVORS REGULATION t Admits His Concern Can Unsell Unsell Unsell Un- Un sell Competitors but hut Says 1 It Aims to Be Fair Washington Dec 7 Elbert H H. Gar Gary c executive of or the United States Steel corporation expressed aga aJan n todO to- to dO 6 before the tho S Senate nate committee on Interstate commerce hi his belief that the thetA tA tell States government must assume trot of big corporations to protect public and at nt tho the same samo time to Inre lu lure In- In re rc the tho advantage of ot corporation les and development Mr Gar Gary before the thc com com- o his hiM recommendations for the of a federal corporation com- com n tho tco licensing of or all corpora corpora- ions Ions tho regulation of at their agree rec and consolidations and complete publicity of oC their affairs t lIe JI lie admitted that the tho steel corpora corpora- corporation corpora corpor- lion tion could undersell any of or its is 00 OO competitors competitors com com- who do 6 62 52 per Iler cent of at the do- do business because of ot greater economics economies of oC production but he lie said it aimed Almer at maintaining fair prices and fair competition instead of ot cutthroat cut cutthroat cut cut- throat t methods that ultimately drive the smaller concerns to bankruptcy r The hc Hill ore lease is to tn be canceled ran can J because e it has been criticised criticised b bythe by the he department nl of or commo commerce co and la- la bor and also at the hearings before the Stanley Stanle committee said Judge Gar Gary No Xo o corporation has tho the right to object ob object object ob- ob to the Sherman la law last It If it means as I think It IL does docs that no combination tion shall be created with the purpose of ot creating a monopoly or the necessary fleece sar sary result of oC which shall be bo the creating creating cre cre- aUng of oC monopoly or which shall be carried on for tor the purpose or with the result of ot unduly restraining trade ho hc said But the trouble Is that no one even the courts knows what will be bean bean bean an undue restraint of trade If U the tho United States Steel corporation corporation corporation corpora corpora- tion has not done business in a fair Calr fairway fairway wa way if It It Is not doln doing business fairly now I am willing to concede that there thero ought to be a law to compel It to do doso doso doso so said Mr air Gar Gary later Senator asked It if the cor- cor I IaUn had llad not be been i greatly overcapitalized over over- capitalized when formed in 1901 1901 On G On n tho the basis of or the the- original cos cot coit t ot of i the T properties r Involved It was undoubtedly un un- overcapitalized o said Mr I Gar Gary but on the basis of ot actual values val val- alues ues of oC those these properties It was not overcapitalized over O capitalized Senator Pomerene asked whether the steel trust had been formed as a result or ot a financial combination or to meet the necessities of or the tho trade It was not a Wall Vall street exploitation tion emphatically replied Mr Gar Gary The Thc leading and controlling motive was to to form Im I'm a n corporation for tor business business business busi busi- ness purposes of at real and substantial benefit to the country's business not inimical to any anyone one George GeorgeV 1 V Harris of ot Cincinnati urged the enactment of oC a n. federal law limiting limit In ing the amount of oC profits of at big cor cor- He said ald a n plan that would permit the larger combinations of oC capItal cap cap- ital to earn only 6 per cent interest on their Investments while smaller corporations were allowed much larger returns would speedily break up the thea a aggregations of ot capital Into smaller competing companies |