The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-08-03

the United States Steel corporation
was organized BY J. II. Morgan
& company for the purpose OF
monopolizing the steel industry OF tho
country Is the basis OF the report OF
i've Democratic members of the Stan
Icy steel trust investigation commit
tee. which was presented to the House
Of Representatives today
Drastic Legislation providing for an
amendment to the Sherman antitrust
law d bill 10 prohibit persons en-
gagged In the manufacture or sale OF
railroad supplies. from becoming al
Tectors in railroads engaged in inter-
state commerce aud bin to regu-
jate the ownership o. common car
riers engaged in interstate aud FOR
oign commerce, are recommended oy
The committee.
The provisions OF the amendment
W the Sherman antitrust law were
made public few days ago. The
most important o. these limit the
output OF any corporation TO so per
cent OF the total quantity Of any
article sold in the United states: per
nit an individual to bring suit in
equity against a corporation under
the Sherman antitrust law. and in
suit for dissolution under this law
provides that the defendant must FUR
nlsh the proof as whether the re-
straint Is reasonable or not.
HtJSm nnGH0nfion MOI
Tho recommendation Of Judge
Gary and Andrew Carnegie before the
committee. providing tor the control
Of corporations by the federal gov
eminent. is not approved Such
control" says the committee. semi
sociaiistic in Its nature. It's beyond
the power vested by the Constitution
In the federal congress.
Representative Littlaton of New
York a member OF the COMMITTEE.
concurs with his colleagues In the re-
port on the Investigation and two Of
She bills recommended. but submits
q dissenting opinion on the proposed
amendment TO the Sherman antitrust
law.
dissenting report on the invest
CATION vas submitted by Represents
tive O. II. Young OF Michigan. one OF
the Republican members OF the com
nittee.
Important Findings.
Important findings revealed In the
MA jority report are.
That the United States Steel eorpor-
alton organized for the purpose OF mo
nopoiizing the steel products or the
country.
That the organization Of the various
subsidiary corporations revealed an
extensive overcapitalization. In this
connection the report makes the terse
comment that in some instances the
stocks were not wateFed IN the or
dfuary acceptance Of that term, they
were literally deluSed.
Tha, the purchase Of tile Carnegie
company by the United states Steel
corporation was not made for the pur-
pose Of acquiring ii mill. but Tor the
elimination of Andrew Carnegie then
most dangerous competitor,
v That the nuanciers who promoted sne
United states Steel corporation IN
less than forty days created new values
Oh paper Of over s5oo.Veo.oeo-
THAT this decentralization worked
an untold injury not only upon the
eockholders Of the Steel corpora ton
but also upon the Industry tselt'
Tint the purchase OF the Mesahl ore
fields by the Steel corporation and the
agreement between the Hin interests
Wua the steel corporation were Haae
fer the express purpose Of monopoli7-
ing the ore reserves in the North
west and Of the transportation lines
By which from ores were carried l"
Lake superior.
That the Gary dinners were devised
IL circumyent the sherman antitrust
Law bv avoiding direct and positive
agreements in restraint OF traae.
Not Entitled to Protection.
Thar the United States Steel COR
pormtion Ia not entitled TO any pro-
tectlva tariff on the ground that II
fosters infant industries or protects
American labor. as it does neither.
That the United States Steel cor
poration and the forces behind it mace
many contributions TO the Republican
national campaign fund.
That the interlocking OF directofates
faa n rernfeibus effect sometimes upon
the Steel corporation itself. but more
often upon the public generally.
That revolving conditions exist III
a. ae ia ls hnTAFa
ployed by the Steel corporation as
result of the long hours and compare =
lively low wages.
That the company supply stores sys-
tenn which the Steel corporation mas
established In Its various colonies
shows profits and DIVIDENDS ehtfeS
out Of the ordinary.
That the antagonisnl Of the steel
corporation organized labor has re.
suited In the influx Of unskiiieo
foreigners and made the American
workman shift for himself.
Knock at T. X.
That the absorption of the Tennes'
see Coal and Iron company by tht
steel corporation was not done To pre-
vent a panic as the panic was over
at the time the stock transfer wal
made.
That the dominance OF the stee
corporation since that tire has beer
due In no small measure to the SUD
den ill-considered and arbitrary or
der Of ex-President Roosevelt In per
mtting this merger.
The resolution under which tbs
committee acted was adopted by IN,
house Of representa- tives May the 4th
1911 Hearings were held both II
New York and Washington at which
some Of the most prominent tinan-
ciers and statesmen IN the -eoantr,
testified. including such men as tx
e President Roosevelt. John r.. Gates
Charles NJ. Schwab. Andrew Carnegie
and Judge Gary.
During the hearings sensation was
created by Leonidas Merritt. wht
charged that he and his brother Were
swfndled out OF the Lake superior
Complicated Iron Mines, by thu
Rockefeller interests. These ininei
were later purchased by the steel cor
poration.
The report, which il a voluminou'
affair reviews in detail the formation
of the various subsidiary corporations
which later resulted in the Formation
Of the United States corporation. 7
reveals the conditions existing "A
tha t4.,,a-the various ma manufacturers
we're pooling their products. The de
ejsion in the tddvston Pipe ca -
which resulted in the dissolution q
this concerned. served 10 put an END