The Birmingham age-herald., 1912-07-29
Republicans Favor Legaliza- tion and Regulation Rather Than Dis
 solution
SHOULD REQUIRE
 CORPORATIONS TO
 HAVE U. s. CHARTER
Favors Creation of Interstate Com mission of Industry With Much Power-Approve Majority Report in Great Many
 Particulars

Washington, July 2s-A recommenda- tion favoring the legalization and regula- iton of big industrial concerns. instead of their dissolution, is to be submitted to the House in a report by three re- publican members of the steel investigat- ing committee. The report was signed by Representatives Gardner of Massa- !, chusetts, Young of Michigan and Dan- forth of New York Representative Young submitted an additional statement, and Representative Sterling of Illinois, who believes indissolving the big com | hination will submit separate report. The report advocates the creation of an interstate commission of industry to be clothed with extensive powers of regu- lation, and with power to fix reasonable prices for the output. of corporations. The report would require that all corpora Dtions capitalized at $50,0O0,000 or more op- crate under a charter to be issued by the United States, before engaging in inter- state commerce. Smaller corporations might avail themselves of the federal charter at their own option.
 Recapitalize Corporations
 All corporations availing themselves of the United States charter would be re- capitalized at their actual value. The report commends the work of the bureau of corporations. It also approves the so-called Brandeis bill which would trans. fer the burden of proof to defendant cor porations to show that they are in ''rea- sonabe" restraint of trade. It approves the measures calculated to prevent inter locking directorates, and of the demo- cratic members legislative programme the tke republicans say: The principles contained in the bills drafted by the majority are distinctly worthy of commendation and we give them our approval But If the policy of dissolution favored by the majority is to be pursued. much additional legislation is required before proper dissolution can be obtained. This legislation the ma jority has scarcely outlined" The republican members make 1t plain that the report is not an expression of republican policy or dictared by the re- publican administration, insisting that the the committee members stand on their own bottom in enunciation their views. The report does not spare the "Steel trust or its organizers. J. r. Morgan ds Co. are credited with profit of s62, ,500.- ooo for underwriting the organization of the United States Steel corporation. La bor conditions in the steel mills are de- clared to be bad and a suggestion is made to the corporation to improve them by working mill hands in eight instead of twelve hour shifts
 Does Not Spare Organizers The report thus summarizes it's find ings;
 ''The corporation was capitalized at s1,- 400,000,000 of which nearly ore-half was 'v'ater.'
 ''The average annual earnings of the corporation have been from Il to F per cent on the actual value of it's assets. ''The corporation controls little over one-half the crude and finished steel busi- ness of the United States. '"The average wholesale price of steel products has fallen off since the corpora tion was organized.
 S'Thc corporation and all the independ- ents have an understanding as to prices
 The system of interlocking directorates has insidious consequences and facilitates inside management and the stifling of competition.
 The situation as to iron ore supply is grave and may become rnenacing Labor conditions in certain depart ments of the steel industry are bad.'
 No Bills Yet Prepared
 Many recommendations are submitted although no bills have been prepared. The working out of the plan contem- plated is left to the future. The minority epitomizes its recommendations as fol- A,lows:
 ''Ali corporations exceeding s5ooo0OOo in capitalization or valuation must become United States corporations before enter ing interstate commerce.. For smaller corporations United States charters are voluntary.
 "All United States corporations must be recapitalized at their actual value.
 "When the price fixed by q United fat a to he. unreasonable, the interstate commission of industry must publicly declare that fact and recommend a reasonable price.
 "Interlocking directorates and holding companies forbidden except when permit ted by interstate commission of industry
 If foregoing recommendations shall prove insufficient to meet the trust prob lem. the interstate commission of industry ought to be given carefully guarded power to decree maximum prices when necessary.
 industrial corporations not to own com mon, carriers.
 Unreasonable restraint of trade de- fined and burden of proof of reasonable ness transferred to the defendant
 Individuals and states to have the op- portunity to intervene in government suits.
 .'Extensive powers and instructions for courts when combinations are a+s,.aS .. illegal. Inf in .ha h,a s
 
 "Recommendatiop.Iing mills three shirt, Steel corporal. .ng eight hours each. ouph taKe the place of two shifts of men w
 ing l2 hours each.'
 Critise Majority Report
 The republicans take up the maio
 report and crfticise 1t in detail. In
 putting the findings of fact the mino
 report says:
 By singling out unusual incidents
 unusual evidence, selecting unusual ve,
 unusual prices and unusual practices
 a standard of comparison, the naior
 has created an overdrawn picture n
 trayins diabolical Ingenuity and sInis
 maleyolence as the cnaracteristfcs of
 United States Steel corporation officiaI
 The report of Herbert Knex Smith. co
 missioner of corporations, is indorsed
 rthe minority for the most part. Tn
 agree with him that of the s1 4oo GOO Oop
 capital of the Steel corporation in Apr
 (Ceatinuea sn Page Two)