Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1912-07-31
MINORITY DIVIDED
ON STEEL REPORT
Split on Character of Remedial
Legislation Needed.
ALL AGREE ON CERTAIN ITEMS
Federal Incorporation of Concerns En-
gagged in Interstate Commerce
Capitalized at $5o,ooo,oo0 Is
Keynote Recommendation.

Washington, July 29.-The federal
in interstate commerce whose capital
ization or value exceeds $50,O00,000, is
the keynote recommendation of the
minority members of the Stanley steel
investigation committee. The report
of the Republican members of the in
vestigating committee was made pub
lie today.
The full report is signed only by
Representatives Gardner and DAN
forth. The remaining Republican
members, Representative Sterling
and Young of Michigan file individual
dissents on the exact character of
remedial legislation needed.
Federal Incorporation Is Remedy
Messrs. Sterling and Young agree
with their Republican colleagues that
federal incorporation is a remedy for
present industrial evils, but they de-
cline to go so far as to recommend
the federal regulation of prices, which
Gardner and Danforth advocate in
the event the situation cannot other
wise be metz
The four Republican members agree
on the following salient findings of
fact as developed by the long investi-
cation Of the United States Steel cor
poration:
That J. P. Morgan & Co. received
$62 100000 for organizing the corpora
ton and that of the capitalization of
81 400, 100000 nearly one-half was wa
ter.
Trust Controls Half Of Industry.
That the average annual earnings
of the Steel corporation have been
from IL to IL per cent. Of it's assets
and the corporation controls more
than one-half of the crude and finished
steel business of the country.
That the average wholesale prices
Of steel products has been lowered
since the corporation was formed, but
that the corporation and all indepen-
dents have an understanding as to
price.
The system of interlo cking director
ates has insidious consequences and
tends to inside management and the
sitting of competition.
Labor Conditions Bad.
That the situation as to the iron
ore supply is grave and may become
menacing and that labor conditions in
certain departments of the steel indus
try are bad.
AS a result OF this situation in the
steel industry the minority members
recommend the federal incorporation
Of ali concerns with capital exceeding
$50,000,000 which desire to enter in
terstate commerce. These corpora
tons, so characterized, are to be
known as United States corporations.
For corporations of smaller capital it
is recommended that charters shall be
voluntary.
The creation of an interstate COM
mission of industry, similar in pow
ers to the interstate commerce COM
mission, is recommended and this new
commission is to bring about full pub
licity of all corporations chartered
by it and to publish the fact when
prices are unreasonable and to recon-
mend reasonable prices. Interlocking
directories and holding companies
SuCu DIS Il0 OulISu OIdISO OIOGl pO-
ration-are to be forbidden except
when permitted by the interstate COM
MERGE of industry.
To Decree Maximum Prices.
If federal corporation does not prove
to be the real remedy for industrial
ills and the trust evil, the minority
recommends that the commission of
industry be clothed with a guarded
power to decree maximum prices
when necessary.
The minority report comedies with
the majority report in that 1t recon-
mends that industrial corporations
should not own common carriers. The
Republican members are also agreed
with the Democrats that corporations
charged with violations of the Sher-
man law should bear the burden Of
proof when charged with unreason-
able restraint of trade. The minority
also agree with the majority that in
dividuals and states should have the
right to intervene in antitrust suits.