The Detroit times., 1912-07-30
FEDERAL CHARTERS FOR
FIRMS OVER S5O,OOO,OOO,
URGED IN MINORITY REPORT
Republican Members of Steel IN
vestigating Committee Make
Recommendations
CITE MoRGAN'S RAKE-oFP
Profit For Promoting 81, 1000
Combine Was $62, 100000,
They Say

WASHINGTON, July 29.-In a min.
ority report signed by three Republi-
can members OF the steel investigat-
iIg Lommittee-Reps. Young, CT Mich
igan; Gardner, OF Massachusetts,, and
Dansorth, OF New York. recommends
tion Is made that a law be passed
favoriLf the legalization and regula-
tion cI big industrial concerns in
stead CT their dissolution. The re-
port was submitted TO the house to-
day. Rep. Sterling, of Illinois, who
beiieveI the big combinations ought
to be dissolved, submitted a separate
document
The report advocates the creation
of ln interstate commission OF indus
try, 10 be clothed with extensive pow
ers of regulation, and with power to
fix reasonable prices for the output
of corporations, The report would
require that all corporations capital
lied dt $50,000,000 or more, operate
under a charter to be Issued by the
United States. before engaging in in
terstate commerce. Smaller corpora
.tions might avail themselves OF the
federal charter at their own option.
All corporations, availing them
selves of the United States charter
would be recapitalized at their ac-
tual cost. The report commends the
work of the bureau Of corporations.
Ii also approves the 5o-called Bran
deis bill, which would transfer the
burden of proof to defendant corpora
tions TO show that they are in reason
able" restraint OF trade. II approves
the measures calculated to prevent
interlocking directorates, and OF the
Democratic members legislative pro-
pram the Republicans say:
The principles contained IN the
bills drafted by the majority are dis
tinctly worthy Of commendation. and
we give them our approval. But il
the policy of dissolution favored by
the majority is to be pursued much
additional legislation is required be-
fore proper dissolution, can be obtain
ed. This legislation the majority has
scarcely outlined"
The Republican members make II
plain that the report is not an express
sion of Republican policy or dictated
by the Republican administration, in
sisting that the committee members
stand on their own bottom in enun-
ciating their views.
The report does not spare the steel
trust or its organizers. ]. P. Morgan
& Co. are credited with a profit OF
$62 100000 for underwriting the or
ganfzation OF the u. S. Steel corpora
ton.
The report thus summarizes its
findings
The U. S. Steel corporation was
capitalized at ,400,00000. of which
nearly one-half was water
The average annual earnings OF
the corporation has been from IL to
IL per cent on the actual value of its
assets
Tie corporation controls a little
ovei one half the crude and finished
steel business OF the United States.
The average wholesale price Of
Isteel products has fallen off since the
corporation was organized
Tine corporation and all the inde-
pendentS have an understanding as
TO prices.
the system OF interlocking direc-
tora es has insidous consequences and
facilitates inside management and
:he stlllng OF competition.
"Tic minority epitomizes its recon-
med 5lons as follows:
An interstate commission OF in