The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1912-08-03
Majority Of House Committee Finds Grave
Charges Against the Trust.
DEMOCRATIC MEMBERS SCORE COLONEL ROOSEVELT
Weak Effort Is Made Blacken Name Of Former Presi-
dcnt---Republican Committeeman Dissent From Re-
port-;-Al Agree as to MonopoIistic Character
Of the Combine

corporations possesscS the authority to
thoroughly investigate the Internal at
fairs oi Industrial concerns dcing an
interstate business. Had the character
or the steel corporation and the ma
ture and extent of Its operations been
known to the people and to the prssi.
cent Of he United States at the timo
of the absorption of the Tennessee
Conl Iron company. II is highly i'm
probable that the chief executive would
In 20 minutes have given his consent To
a merger fraught with infinite injury
to the steel industry and to the pu,
Nc alike
The commissioner of corpora tions
should he required to report to con
eress as well AS to the president OF
the United States. at such times and
upon such conditions as Il may
prescribe. and the law creating this
bureau should be 30 amended as 20
make such reports mandatory upon tho
commissioners of corporations.
The enormous earnings OF tho
sicel corporation are due not TO de-
gree Of irtcgration Of efficiency not
possessed by it's competitors. but to
tn. ownership OF ore reserves cut of
all proportion to Its output or requires
mehta end to the control and operation
of c"n,ir on carriers. divisions Of rates.
and the liberal allowances obtained
from other concerns through ineaulta-
Bile and inordinate terminal allow
anccs. The business OF production
and transportation should be abso-
'utely separate and distinct, and no
Industrial concern should be permitted
To own or operate nm interstate cat
rier
"The attorney general OF the United
states and his snhordinates should not
h. permitted to exercise m absolute
d'sc,";ion as I, the institution or pr,-
ccedings under the act OF July I. 1890.
known as the Sherman antitrust act.
or "'hcr acts prohibiting combinations
- iesirain of trade. Tho parties In
Jurioasly affected by such combina-
tiors should have access to the c yurts
and the benef.: OF adequate and suf-
ficicnt remedies for wrongs infllctei
py sui combinations"
Bills Recommended.
The legislation recommended by the
majority consists OF three bills. Ono
of them. commonly known a. tho
Brandeis bill. In designed 10 give an
injured party the right to institute
suit 20 prevent the organization OF n
coinbina tion In restraint OF trade. This
bin also transfers the burden OF proof
To the defendant corporation to show
that II is a combination within 'rea-
sonable restraint OF trade" The bill
recommended by tho committee has
long been pending before congress.
having been introduced by Senator La
Toilette and Representatives Lenroot.
Another bill would provide that mo
person who In engaged rs an individ-
ual mr. as member OF u partnership.
or M n director or other officer, or
nm employee OF a corporation, In tho
business. In whole or In part. OF man
ufaetnrinG or selling railroad cars or
locomotives. or railroad rails or struc-
tural steel, or mining and selling coal
shall act as n director or other officer
or employee of any railroad company
which conducts an interstate COM
merce business"
The third biil IL Intended to hit at
the system OF interlocking director
ates. and would separate Industrial
from railroad business.
The steel trust investigating COM
mittee was authorized 10 begin Its
work on May 4. 1911. Since that date
u has heard many Witnesses and made
many trips of inspection and investi-,
cation Among the witnesses heard
have been most Of the great Amer
ican financiers OF the present age with
the exception OF J. Pierpont Morgan.
Andrew Carnegie, IL. II. Gary. George
w. Perkins James J. Hills, the late
John w Gates and others prominent
In the railway and steel world were
heard AT length. The committee took
thousands Of pages of testimony and
spend many thousands Of dollars.
During the progress OF the hearings
difference Of opinion between the
chairman, A. O. Stanley OF Kentucky,
and Representative Gardner OF Massa-
chusetts, caused q near fist fight and
at one stage of the proceedings George
w. Perkins OF New York was threat
ened with jail sentence for declining
to answer IL question as 10 his con-
tribntions to the republican campaign
In 1908. Later the chairman OF tho
committee Mr.. stanley. withdrew the
question. @
The effort of the COMMITTEES to mas
ter the moves OF the fananciers who
conceived and organized the steel corr
poration resulted In mass of fig
ures which showed enormous profits to
those who were Interested. In speak
Ing OF watered stocks the majority
comment II:
I'm some instances stocks werc not
'watered' In the ordinary acceptance Of