New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-08-03
CALLS STEEL TRUST
GIGANTIC MONOPOLY
Stanley Committees Report
Attacks Its Organizers and
AssaiIs Roosevelt.
CALLS FOR DRASTIC LAWS
Majority Opposes Federal Con-
troll and Proposes Changes in
Sherman Act to Remedy
Existing Abuses.
From The Tribune Bureau

w
concentrations for radical amendments to
the Sherman act and the interstate COM
merce laws and assailng the United
States Steel Corporation as gigantic.
monopoly, the report OK
the majority members Of the Stanley
steel investigating committee was pre-
scented to the House to-day.
Representative Young. Republican
member of the committee. filed his indl-
vidual views. in which he disagreed with
many OF the findings OF fact and recon-
mendations of both the majority and mi
nority OF the committee. The report Of
the minority was made public several
DAYS ago and recommended federal incor-
poration and control OF large industrial
corporations.
The Democratic report characterizes the
plan for federal control as "semi-social-
istic." and recommends remedial legisla-
ton In the shape OF amendments to the
Sherman law which would place the bur-
den OF proof on the defendant corpora
ton and which would define any corpo-
ration controlling % per cent of the out
put of any commodity as guilty OF I'M
reasonable restraint
Representative Littleton. a Democrat,
dissents from that part of the majority
report recommending the amendments 10
the Sherman law.
Result Of Fifteen Months Work.
The Stanley report, which IS signed
by Chairman Stanley and Representa-
tives Beall. Bartlett McGillicuddy and
Littleton, the five Democratic members
OF the steel committee. is volumnous
document Of 2iS printed pages. exclusive
Of tables and various exhibits. The report
follows an Investigation of the steel trust,
which extended over fifteen months, and
includes extracts from the testimony of
numerous fnanciers and steel manufact-
urers in discrimination OF the committee y
finding.
Three bills are proposed-to amend the
Sherman law. to break up the interlOck-
ing system OF dlrectorates and TO divorce
Industrial corporations and railroads.
The report contains a severe condemna-
ton Of the absorption OF the Tennessee
Coal and Iron Company by the Steel
corporation. criticiscs ex-President Roose-
Welt FOR permitting the amalgamation. de-
clares that j. T. Morgan & Co. netted
approximately 100000 In profits and
commissions for underwriting the "Over-
capitalized" corporation, and asserts that
he steel trust has "A monopoly OF the
steel business OF the country.
The majority report says the secret Of
the success OF the gigantic corporation
lies in it's control OF the most valuable
ore fields In the country and IN the own
ership OF common carriers through which
preferential freight rates have been OBJ
tanned.
Representative Young absolves from
blame Colonel Roosevelt, J. p. Morgan.
ex-Judge r. II. Gary. Henry c. Frick
and others interested in the absorption
Of the Tennessee Coal and Iron Company.
These men. declares Mr. Young. acted
from patriotic motives and were solely
imbued with the idea of stopping the dis
astrous panic OF 1907.
Building Up Of Steel.
The report Of the majority deals with
the steel trust from It's inception, and de-
scribes the various steps by which J. p.
Morgan and his associates built up the
corporation. In addition 10 recommended
lions for legislation suggested as remedial
the Democratic members OF the commit
tee make general accusations against the
men responsible for the organization.
J. =. Morgan and his associates are
held up as being the beneflciaries OF
enormous profits realized from tho over
Of the subsidiary companies
Of the steel Corporation and later of the
corporation Itself
Ex-Judgc T.. II. Gary and his dinners to
steel manufacturers are credited with
scheme by which prices and territory were
by the steel trust after pooling
were discarded.
Ex-Prcsident Roosevelt is indicted for
making the control Of the steel trust alb
solute and IL charged with being respon-
siblc for the gigantic stature which the
trust has attained.
The United States steel Corporation is
attacked az an enemy Of organized labor
and accused Of lowering the sociological
conditions OF It's employees and or con-
tributing To American industry workmen
and work methods un-American and for
eign 10 the best interests Of labor.
The principal stockholders Of the Steel
CORPORATION are accused of exerting
and injurious influence on the
business OF the United states by means
of control exercised through interlocking
directories OF railway and Industrial or
CARNATIONS.
The activity Of the corporation in poll
tics is laid bare and It's influence described
and the steel trust as tariff beneficiary
and its part I'm the making Of the Payne
Aldrich tariff act arc touched upon by
the Democrats.
The committee recommends legislation
to cure trust evils and to meet existing
conditions. II condemns the Steel Corpo-
ration, but does not invade the jurisdic-
ton Of the United States court, in which
there is now pedlng government suit
for It's dissolution,
Against Federal Control.
In summing up its conclusions the ma
jority report says:
The control of corporations by the fed
eral government, az recommended by Mr..
Judge Gary and others. Is not
approved. Whatever may be the evil re-
suits OF the elimination OF competition
Frnp, tho stepl business. II does tllsti-