The Washington times., 1912-08-02
Steel Trust Sharply Criticised
By Stanley Committee in Report

, porations and common carriers by pro-
i viding that after December 81, 1918, no
| company, firm, or corporation doing a
mining or manufacturing business shall
| own or control, directly or Indirectly,
any railroad or other line OF transport
tation.
A second section OF the bill would
prohibit any firm OF corporation own
| of any transportation line to use such
| line in the Interstate shipment of any
commodity manufactured or sold by the
! firm or corporation.
Breaks Common Ownership.
These two provisions. the committee
| believes, win break up the common own
| ership of railroads and manufacturing
| concerns
On this point, the majority report
says:
''The holding Of the stocks of trans
portation lines and other great concerns
doing an Interstate business by such
1 companies should not be tolerated by
| the Federal Government when II has
the authority to prevent 1t.
The United States Steel Corporation
utilizing TO the utmost the opportunity
| by holding company, and supported
and sustained by its allies, financial
and industrial. has secured an unques-
toned and absolute dominance over the
production, manufacture, and transpor-
| taton OF Its product"
The majority report disapproves OF
the plan OF Federal Incorporation, and
Tegulauon OF prices as advocated by
Judge Gary. the executive head of the
Steel Corporation, and as approved in
| the minority report. The majirity SAYS:
Such control, semi-socialistic In its
nature, is beyond the power vested by
the Constitution in the Federal Con-
| gress.
THE abuses mentioned in this report
can In great measure be remeedied
by giving to the operations of the Unit
ed States Steel Corporation and other
like corporations the widest publicity,
with the strict enforcement of laws spe-
cifcally inhibiting the employment of
cunning devices by which an unfair ad-
vantage over competitors Is secured.
The Roosevelt Affair.
| The bureau of corporations possesses
the authority to thoroughly Investigate
the internal affairs Of Industrial con-
Germs engaged In interstate commerce.
Had the character Of the United States
Steel Corporation and the nature and
extent of Its operations been known to
the people and to the President at the
time of the absorption Of the Tennessee
Coal and Iron Company, It Is highly
improbable that the Chief Executive
| would in twenty minutes have given his
consent to merger fraught with in
finite injury to the steel Industry and
to the public alike"
| 1.-THE capitalization of the Steel Cor
| poration is now 81, ,7i5. .724. .2S4.49," says the
no degree determines its actual power"
! A chapter is devoted to the manner in
which John d. Rockefeller is alleged to
have squeezed out the unsophisticated
ing" q loan on their ore holdings In the
Mesabi range. These holdings now be-
long to the Steel trust.
| The report goes exhaustively into the
| transportation question showing how
the Steel trust has an advantage over
| all competitors because of Its owner
ship of various subsidiary transporta-
ton lines, and because the steel Cor
The labor conditions in the steel in
dustry are condemned and reports of
the Department Of Commerce and La
Dor, as well as testimony before the
sSat on T the stee 70 %ofRers sRe
are underpaid and overworked. and live
under unsatisfactory conditions, both
moral and sanitary.
in the steel mills, the report says, "are
too revolting for publication here" The
report states the attitude of the Steel
Corporation toward labor unions is un-
deniably inimical.
Congressman Young of Michigan, a
Republican, filed a dissenting report
in which he disagrees both with the
majority and minority Of the Stanley
edial legislation, monopoly. and GER
tain findings OF fact:
Mr.. Young finds that the United
States Steel Corporation when organ
ized was greatly overcapitaliZed, but
this has been remedied to a large ex-
tent.
The Interstate Commerce Commits
sion and various State railroad com.
| wi ioa ha ~
power to divorce railroads and in
dustrial corporations. without addi-
tional lawmaking.
He gives Judge Gary credit for
structural steel agreements.
The main purpose of the Gary dinners.
Mr. Young finds, was to create friendly
relations among steel men and avoid
Mr.. Young says the steel Corporation
controls about one-half of the Iron ore
In the Lake Superior district, and not
to exceed one-half Of the available ore
ton of raw materials. he declares, in
direct contradiction to the Stanley
views. has not kept pace with its manu-.
featuring achievements or capacity.
dency of steel prices since the formation
of the steel Corporation has been down.
ward.
Absolves Roosevelt.
The Michigan Republican devotes con.
siderable space to the Tennessee Coal
and Iron deal. absolving President
Roosevelt and all others interested from
improper motives. In this connection
Mr.. Young says:
There Is not the slightest evidence
that there was any attempt by the
United States Steel Corporation, or j
P. Morgan & Co., or anyone else, to de-
press Tennessee Coal, Iron and Railroad
Company stock in the market, or to EN-
barrass It's owners, or Moore e. Schley
so as to buy the stock cheap.
"On the contrary, the evidence shows
conclusively that all of the business
interests in New York city were work.
ing unselfishly and patriotically to stem
the tide of the panic and financial dis.
aster that was sweeping over the coun.
try;
time would probably have resulted II
many other failures, and in greatly
aggravating the panic and spreading
loss and suffering among millions of oui
people.
Moore & Schley would probably
have failed but for the relief offered
by the sale OF the Tennessee, Coal
Iron and Railroad Company stock.
"Messrs. Frick and Cary made frani
and truthful statements to President
Roosevelt of the material facts of the
case.