The Daily Missoulian., 1912-07-29

combinations. VIII submit a separate
report.
The minority report favors the
creation Of an interstate commission
Of industry to be clothed with ex-
tensive powers OF regulation and with
power to fix reasonable prices for the
output Of corporations. The report
would require that all corporations
capitalized at 350,O0O.O 900 or more
operate under a federal charter, be-
fore engaging In interstate commerce.
Smaller corporations might avail
themselves OF the federal charter at
their own option.
The republican members make II
plain that the report is not an express
sion Of republican policy nor dictated
by the republican administration.
orsanixsrs Scored.
The report does not spare the steel
trust or ITS organizers. J. r. Morgan
4 Co. are credited with profit Of
$62.600,000 for underwriting the or
ganization OF the United States Steel
corporation. Labor conditions In the
steel mills are declared bad and q sug-
Ecstion is made TO the corporation to
improve them by working mill hands
In eight instead OF 12-hour shifts.
The report thus summarizes It's find
ings:
"The corporation was capitalized at
$1.%0O. .000,0 900. of which nearly one-half
was water
THE average annual earnings Of the
corporation have been from II to ~
per cent on the value OF Its assets.
''The corporation controls a little
over one-half the crude and finished
steel business Of the United States.
"The average wholesale price Of steel
products has fallen off since the cor
poration was organized.
A Price Agreement.
"The corporation and all the indie.
pendents have an understanding as to
prices. The system Of interlocking
directorates has insidlous conse-
quences and facilitates inside man.
agement.' and the sitting of compe-
titton.
"The situation as to iron ore supply
IL grave and may become menacing."
Many recommendations are submit
ted, although no bills have been pre-
pared. The minority report epitomizes
Its recommendations as follows:
IAN corporations exceeding $50. .0o0,-
900 In capitalization or valuation must
become United States corporations be-
fore entering into Interstate commerce.
For smaller corporations United States
charters are voluntary.
"Ail United States corporations must
be recapitalized at their actual value.
An interstate commission Of indus
try. like the Interstate commerce COM
to be established. Publicity
to be provided for.
when the price fixed by a United
States corporation has been found un-
reasonable. the commission of indus
try must recommend reasonable
price.
Forbid Holding Companies.
''Interlecking directorates and hold
ing companies forbidden except when
permitted by interstate commerce COM
of industry.
IF foregoing recommendations shall
prove insufficient to meet the trust
problem. the interstate commission of
industry ought to be given carefully
guarded power to fix maximum prices
when necessary.
Industrial corporations not to own
common carriers.
Unreasonable restraint of trade
defined and burden of proof Of 'rea-
sonableness' transferred to the de-
fendant.
Individuals and states to have the
opportunity to intervene In government
suits.
Extensive powers and instructions
for courts when combinations are ad-
Judged illegal"
Mr.. Gardner and his colleagues re-
frain from injecting political dispute
into the report and pass over The
merger of Tennessee Coal & Iron by
United states Steel by saying II has
no bearing on the subject
Representative II. c. Young OF
In signing the report, said
he believed the Interstate commerce
commission and the State railroad
commissions are clothed with sur
ficient power to remedy oil evils
growing out of ownership Of common
carriers by the Industrial corpora tions.
In discussing the Tennessee coal and
iron merger by the steel corporation
and the panic of 1907. Mr.. Young at
taches no blame to j. Pierpont Morgan.
OF the visit Of H. c. Frick and
Judge Gary to former President Roose-
velt. Mr.. Young asserts.
"Messrs. Frick and Gary made frank
and truthful statements to President
Roosevelt of the material facts of the
case. The steps taken by President
Roosevelt In the matter were inspired
by patriotic motives. They gave the
United States Steel corporation no ad-
diticnal rights nor granted them I'm
murity from any civil or criminal pro-
ocedinEs. should 1t appear later that
they had In any way violated the law"
Youns's Report.
Washington. July 2s.-Congressma
II. O. Young OF Michigan, repub-
lican member Of the Stanley steel In
committee. made public to-
day his report on the steel industry