New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-07-29
Disso luton Not Real Remedy.

The report disputes the assumption
that the true remedy lies In tho dissolu-
ton OF the Industrial corporations and
says the majority has failed 10 recon-
mend adequate legislation TO effect
cure By this method.
"Of the legislation proposed by the
majority we have little unfavorable crit
c!sm 20 mako other than OF It's made
quacy 20 meet the situation" says the
report.
In discussing it's programme OF con-
structiye legislation the minority report
offers tho following:
We recommend that all corporations
or combinations equalling In valuation
or In capitalization the amount or soV.-
600 600 or such other sum az may De
determined upon, shall be compelled 10
acquire Il United States charter BEFORE
engaging In interstate commerce.. we
recommend that voluntary federal lncOr-
pora ton shall be provided FOR lesser or
Plantations. The day has gone by when
any niceties or historical policy should
be permitted TO blind Us 10 the economic
obliteratlon OF state lines.
We recommend the establishment or
an Interstate commission OF industry,
which shall have control over all cor.
porations operating under United
states charter
Whenever the price charged by
United States corporation for one OF It's
products shall have been found 10 be I'M
reasonable by some competent authority
20 be determined hereafter, we recon-
mend that il shall be the duty OF the
interstate commission OF Industry 10
make public declaration OF the fact and
20 recommend a price In lieu OF that
found unreasonable
We recommend that all corporations
aha haN char
ter shall be required to recapitalize at
an amount not TO exceed the true value
of their assets. In the valuation Of their
assets we recommend that nothing be
reckoned FOR so-calied monopoly value,
or value which arises merely from their
exclusive, majority or substantial con-
troll OF the industry In which they are
engaged.
We recommend that Interlocking direc-
torates in United States corporations
shall be forbidden except when licensed
By the Interstate Commission OF Indus
try. ,.,..,
companies shall be forbidden except when
licensed for temporary purposes OF reor-
ganization BY the Interstate Commission
OF Industry.
prove insufficient 10 enable the Interstate
Commission OF Industry 10 exercise sal
utary control over United States corpora
tions, we recommend that further legts-
lation he enacted bestowlng on the COM
mission a carefully guarded power TO fix
maximum price In lieu OF any price
adiudged TO be unreasonable.
Economic Laws Distorted.
The minority admits that tho last rec
ommendation will find disagreement
among both students Of politics and econ
omy.
Representative II. o. Young, of Michi-
gan, In signing the report said that he
believed the Interstate Commerce Com
mission and the state railroad commits
sions are clothed with sufficient power 10
remedy all evils growing out OF owner
ship Of common carriers by industrial
corporations.
81 am not convinced" says Mr.. Young,
that the power to fix prices is necessary
to the efficiency OF federal control. Should
experience. however. demonstrate that !
am wrong In this conclusion, I should un-
hesitaungly favor the granting OF such
power"
Mr.. Young states that the United States
Steel Corporation was overcapitallzed,
but that this had been remedied by the
relnvcstment OF earnings since It's organi-
zation. He also finds that the share OF
the through rate received by steel com
pany railroads Is excessive and should be
romedied by the Interstate Commerce
Commission. He further asserts that the
output OF tho Steel Corporation relative
to tho entire output Of the country has
decreased since it's organization and Is
lower now than In any period IN several
years. The corporation has doubled It's
capacity. but the country's output has
Increased 100 per cent. Prices Of steel and
iron have decreased. Mr.. Young says, and
he attributes to the Steel Corporation
credit for steadying prices.
Exoneratss ]. p. Morgan.
In discussing the Tennessee Coal and
Iron merger by tho Steel Corporation and