The Barre daily times. (Barre, Vt.) 1897-1959, 1912-08-03
Stanley Report Declares Com
petition Was StifIed
1T SUGGESTS NEW LAWS.
The "Gary Dinners" an Agency for AL
legged mbination--Roosevel Is
Scored for Tennessee
Absorption.

Washington. Aug. Fifteen months
of investigation Of the steel trust b,
the special committee of the House were
summarized in reports submitted to thai
body yesterday, one set eondemning thu
United States steel corporation as 81
gantic monopoly in restraint OF trade
the other, although accusing it OF sharI
practices, holding that it is not mo
nopoly All the reports submit volumin'
Gus suggestions for amendment and re-
Mobilization of the antitrust laws
based on evidence developed during the
! hearings.
| The reports all refrain directly from
expressing the opinion that the United
States steel corporation has violated the
Sherman law. An agreement to omit
reference to this phase of their investi-
CATION was reached because of the pen
dcncy of the governments suit to dis
solve the corporation. The majority re-
port, however, bristles with denunciation
Of the combines methods OF 'stifiing
competition of "exerting monopoly, .
and of controlling prices" through own
ership of railroads and practical monop-
Scores Gary Dinners.
The so-called Gary dinners at which
the heads of all the steel corporations
subsidiaries met with the chairman of
the board of directors, Judge +. n.
Gary, are bitterly scored in the main
report.
"We think the conclusion is irresisti-
ble," the report says, that the Gary
dinners were instituted as means of
conveying to the entire steel and iron
industry information as to the attitude
OF the United States steel corporation
upon the question of output and prices,
and of impressing upon all engaged in
the industry that it was the part of wis
dom and prudence to govern themselves
accordingly.
1--WE further believe that by this
means prices were maintained, output re-
stricted, territory divided competition
stifed and trade restrained, just as GER
tainly. just as effectively and just as
as had been done under the
discarded pooling arrangements of for
mer years
GLOW panic which persistently re.
sisted the combined efforts of the gov
eminent and John d. Rockefeller and
j. p. Morgan & Co. should suddenly be
stilled by manipulation of Schley's loans
has not been explained either by Mr..
Roosevelt or by any other witness.
Since that time the trusts dominance
has been due in no small measure to the
ill-considered and arbitrary fat of the
chief executive.
"The control of corporations by the
government, as recommended by Mr..
Carnegie, Judge Gary and others, is
semi socialistic in its nature and beyond
the power vested by the constitution in
Congress.
"As to the daily lives and conditions |
Of steel corporation laborers, the testi- |
mony shows conditions undesirable, and
far below what is ordinarily understood |
to be the American standard of living
among laborers in our country Some OF
The details are revolving, both as to SAN
tary and moral conditions.
81. p. Morgan & Co., with an amazing
launched this new Sl9,000,000
on its course with a total
capitalization of $s0,O00,O00, and re-
,eived as compensation securities of this |
concern aggregating $20,000,000."
Three bills, outlining trust eurbs, were
presented with the report. One provides |
Tor amendment of the Sherman law to
place the burden of proof upon defend
INT corporations charged with restraint
If trade. Control of 30 per cent. of any
business is made prima facie evidence of
,uilt. Another provision gives each state
md any injured individuals the right to
,ring Injunction suits against trust.
A second bill is designed to prevent
directories" among rail
Dad and industrial corporations. 1t is
proposed to prohibit any officer or en-
,loye of an industrial corporation in the
oal industry or manufacturer of struc.
ural steel and rolling stock, from act
ng in similar capacity for rail-
Dad.
Another bill seeks divorce of industrial
md common carriers by prohibiting min,
ng or manufacturing companies from
,wning stock in any carrier.
The committee also recommends that
he bureau of corporations report to Con-
,ress in addition to the president, pro-
riding publicity of corporate combina.
ions.
Chairman Stanley of Kentucky, Rep
esentative Bartlett of Georgia, Repre-
sentative McGillicuddy of Maine, and
Beall Of Texas, all DEM
'crats, concur in all of these recon-
Representative Littleton of
Sew York, Democratic, dissents only
rom the bill changing the burden of
roof.
That J. p. Morgan & Co. received
fee of S62,500000 for underwriting the
teel syndicate is asserted.
1.-The steel corporations capitalization
) L745.724, 2s4.49," the report declares,
but this sum, huge as it is, in no degree
etermines its actual power" Continu-
ng, the report cites where the vast hold
ngs of directors of the trust" in other
operations totals up into staggering !
illions
The Morgan Gary Perkins plan for fed ,
raj incorporation and price fixing, the !
Democrats declare, is mi-socialistic," !
nd the present situation is best RENE !
led by publicity and strict enforcement !
I laws.
Roosevelt Criticised.
"Had the character Of the steel cor a
grafton been known at the time of the I
bsorption of the Tennessee Coal & Iron I
Dmpany, it is highly improbable that 7
he chief executive would in 20 minutes /
ave given his consent to merger
raught with infinite injury to the steel
ldustry and the public alike" the re- t
ort SAYS. n
Bitterly eriticising Roosevelt for this a