Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-07-29

commissioner of corporations, Endorsed
by the minority for the most part.
They agree with him that of the ST.
400, 000, 900 of capital of the Steel
Corporation in April, 1901, 5000. 600
or $700,000000 was water. They also
agree that for the decade from 1901
to 1910 the trust earnings averaged
from IL to IL per cent. The minority
further finds that the Steel Corpora
ton has generally fixed prices and
Independents have followed" The
Gary dinners are said to be the gas
tronomic shadow of the Sprice under
standing rather than their substance"
The system of interlocking direc-
torates has insidious disadvantages
which no man can guage," says the
report NO doubt the wisdom of
their absolute prohibition, unless reg
ulation shall fail TO abate their evil"
The report devotes 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
today. is bad. As a rule in the plants
of the corporation conditions are bet
NNi NAttdi III titt pldiitS vi lit HUT
pendents. In the rolling mills and
blast furnaces, men often have been
required to work. or at all events
remain on more or less exacting duty.
fer L hours a day for days in the
week Incredible as it may seem. the
fact is indisputablo. 1t is true that
blast furnace must be kept going
night and day. If it is extinguished.
it is ruined. We believe that the cor
paration is substantially improving
this situation; but we cannot forbear
from uttering the suggestion that
three shifts OF s hours each ought to
take the place of two shifts of II
hours each"
Mr.. Gardner and his colleagues re-
frain from injecting a political dis
pute into the report and passed over
the merger of Tennessee Coal and
Iron by United States Steel by saving
that it has no bearing ON the subject.
The report disputes the assumption
that the true remedy lies in the dis
solution of the industrial corporations
and says 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
In discussing its program of con-
struetive legislation the minority Of
fers the following:
we recommend that ALL corpora
tons or combinations equaling in val
| uation or in capitalization the amount
of $50. 100000 or such other sum as
may be determined upon, shall be
compelled to acquire a United States
charter before engaging in interstate
commerce. We recommend that vol
untary Federal incorporation shall be
provided for lesser organizations. The
| day has gone by when any niceties of
historical policy should be permitted
| to blind us to the economic oblitera-
tien of state lines.
I'VE recommend the establishment
| of an Interstate Commission of In
dustry, which shall have control over
| all corporations operating under a
| United States charter This control
shall be similar to that which is exer-
eised by the Interstate Commerce
Commission over the railroad com
| panes and shall insure the requisite
publicity.
| Whenever the price charged by
United States corporation for one of
! its products shall have been found to
be unreasonable by some competent
authority to be determined hereafter.
| we recommend that it shall be the
| duty of the Interstate Commission of
| Industry to make public declaration
of the fact and to recommend a price
| in lieu of that found unreasonable
| We recommend that all corpora
tions when they acquire a United
States charter shall be required to re-
| capitalize at an amount not to exceed
| the true value of their assets. In the
valuation of their assets, we recon-
| mend that nothing be reckoned for
so-called monopoly value. or value
which arises merely from their exclu-
sive. majority. or substantial control
of the industry in which they are en-
gagged.
| I'VE recommend that interlocking
ldirectorates in United States corpo-
rations shall be forbidden except
when licensed by the Interstate Com
mission of Industry
I'VE recommend that so-called
| holding companies shall be forbidden
except when licensed for temporary
purposes of reorganization by the
Interstate Commission of Industry.
| Should the powers. which we sug-
gest, prove insufficient to enable the
| Interstate Commission of Industry to
| exercise a salutary control over Unit :
ed States corporations. We recommend
! that further legislation be enacted be-
slowing on the commission carefully
guarded power to fix maximum price
| in lieu of any price adjudged to be
unreasonable
The minority admits that the last
recommendation will find disagree
ment among both students of politics
land economy, and anticipating this
the report says
I'VE are fully alive to the fact that
| this recommendation runs counter to
the time honored doctrines of the
lgreatest Engish-speaki political
| economists of the past. 1t even runs
counter to much historical experience.
| Nevertheless. we are also aware that
| the great political economists of the
I