Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1912-08-01

the authorities engineered the affair, was
jorlty has created an overdrawn picture
portray!ng diabolical ingenuity and sinis
ter nlalevolcnce as the characteristics of
the United States Steel corporation Off
Gals"
The report of Herbert Knox Smith,
commissioner of corporations. is endorsed
by the minority for the most part. They
agree with him that of the $l.4Oo. 100000 of
capital of the steel corporation in April,
1901, s6DOO0UO or S7U00O.0OO was water
They also agree that for the decade from
1901 to 1910 the trusts earnings averaged
from II to j. per cent. The minority fur-
Their finds that the steel corporation has
generally fixed prices and Independents
have followed" The Gary dinners are
said to he 1.-THE gastronomic shadow Of the
price UNDERSTANDINGS rather than their
substance
THE system of interlocking direc-
torates has insdious disadvantages
which no man can gauge. says the
report I'VE doubt the wisdom of their
absolute prohibition. unless regulation
shall fail to abate their evil"
REGARDING LABOR SITUATION.
The report devotcs the following
paragraph to the labor situation in
steel trust plants:
THE labor situation in certain man
ufacturing departments of the steel
industry has always been bad. and to-
day is bad. AS rule. In the plants
of the corporation conditions are bet
ter than in the plants of the inde-
pendents. In the rolling mills and
blast furnaces, men often have been
required to work, or at all events re-
main on more or less eXacting duty.
for IL hours a day for seven days in
the week. Incredible as it may seem.
the fact is indisputable. 1t is true
that blast furnace must be kept
going night and day. II It is ex-
tinguished it is ruined. We believe
that the corporation is substantially
improving this situation; but we can
not forbear from uttering the sugges-
tion that three shifts of eight hours
each ought to take the place of two
shifts of IL hours EACH"
Mr.. Gardner and his colleagues refrain
from injecting Il political dispute into the
report and passed over the merger of
Tennessee Coal and Iron by United States
Steel by saying that it has no bearing
on the subject.
The report disputes the assumption that
the true remedy lies in the dissolution
of the industrial corporations and say
the majority has failed to recommend
adequate legislation to effect a cure by
this method.
"Of the legislation proposed by the
majority we have little unfavorable
criticism to make other than Of its
inadequacy to meet the SITUATION says
the report
FAVORs FEDERAL CONTROL
| In discussing its program of construc-
tive legislation the minority offers the
following:
I'VE recommend that all corporations
or combinations equaling In valuation or
| in capitalization the amount of s50,oo0,"0
or such other sum as may he determined
upon. shall be compelled to acquire a
United States charter before engaging
in interstate commerce. We recommend
that voluntary fedral Incorporation shall
be provided for lesser organizations. The
day has gore by when any niceties OF
historical policy should be permitted to
| blind us to the economic obliteration OF
State lines.
! I'VE recommend the establishment OF
an interstate commission of industry,
which shall have control over all cor
porations operating under United
States charter. This control shall be SIM
liar to that which is exercised by the
interstate commerce commission over the
railroad companies and shall insure the
requisite publicity.
whenever the price charged by Unit
ed States corporation for one of Its prod
ucts shall have been found to be unraa-
sonable by some competent authority to
be determined hereafter. we recommend
| that 1t shall be the duty of the intersta te
commission of industry to make public
declaration of the fact and to recommend
| price in lien, of that found unrea soma BILE
| TRUSTS SHOULD RECAPITALIZE.
I'VE recommend that all corporations
when they acquire a United States char
ter shall be required to recapitaiize al
an amount not to exceed the true value
of their assets. In the valuation of their
assets we recommend that nothing be
reckoned for so-called monopoly" value,
| or value which arises merely from their
exclusive, majority or substantial con-
troll of the industry in which they. ere
engaged.
I'VE recommend that interlOcking
directorates in United states corpora
| tions shall be forbidden except when
licensed by che interstate commission
of industry
I'VE recommend that so-called hold
ing companies shall be forbid len ex-
cept wien licensed for temporary pur-
poses OF reorganization by the inter-
state commission of industry.
should the powers which we sug-
gcst prove insufficient to enable the
Interstate commission Of industry tt
exercise a salutary control over United
states corporations. we recommen
that further legislation be enacted be
slowing on the commission careful
i " guarded power " Ax maximum