The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1912-08-02

steel corporation are due not to a de-
gree of indignation of efficiency not
possessed by it's competitors. but to
the ownership Of ore reserves out OF
all proportion to its output or re-
quirements and to the control and OPP
GRAFTON of common carriers. divisions
of rates. and the liberal allowances
obtained from other concerns
through inequitable and inordinate
terminal allowances. The business of
production and transportation should
be absolutely separate and distinct.
permitted to W or operate an inter-
state carrier.
Curb Attorney.
THE attorney general of the Unit
ed States and his subordinates should
not be permitted to exercise an alb
solute discretion as to the institution
or proceedings under the act of July
1. 1890. known as the Sherman anti
trust act, or other acts prohibiting
in restraint of trade. The parties in
j~urisously affected by such combina-
tons should have access to the courts
n the benefit Of adequate n suf-
ficient remedies for wrongs inflicted
by such combination"
The legislation recommended by
the majority consists of three bills.
One of them, commonly known as the
Brandeis hill is designed to give al
injured party the right to institute
suit to prevent the organization of a
combination in restraint of trade.
This bill also transfers the burden of
proof to the defendant corporation to
show that it is a combination with
in reasonable restraint of trade"
The bill recommended by the commit
tee has long been pending before con-
gress. having been introduced by SEN
ator La Toilette and Representative
Lenroot.
Another bill would provide that mo
person who is engaged as an individ-
ual or AS a member of a partnership,
or as a director or other officer. or an
employe of a corporation. in the bust
ness. in whole or in part, of manu-
featuring or selling railroad cars or
locomotives or railroad rails or
structural steel, or mining and SELL
ing coal shall act as a director or 9TH
err officer or employe of any railroad
company which conducts an inter-
state business"
The third bill is intended to hit at
the system of interlocking director
ateS. and would separate Industrial
railroad business.
The steel trust investigating COM
mittee was authorized to begin its
work on May 4, 1911. Since that date
1t has heard many witnesses and
made many trips of inspection and in
heard have been most of the great
American financiers Of the present
age with the exception of j. Pierpont
Morgan. Andrew Carnegie. E. II.
Gary, George w. Perkins. James j.
Hill. the late John ". Gates and 9TH
ers prominent in the railway and steel
world We're heard at length. The
committee took thousands of pages of
testimony and spent many thousands
of dollars.
Differences in Committee.
During the progress Of the hear
ings a difference of opinion between
the chairman. A. o. Stanley, Of Ken
lucky. and Representative Gardner of
Massachusetts. caused a neal fist
fight and at n stage Of the proceed
lngs George W. Perkins Of New York,
was threatened with a Jail sentence
for declining to answer a question as
to his contributions to the republican
campaign in 1908. Later the chair
man of the committee, MIR. Stanley,
withdrew the question.
The effort Of the committee to
master the moves of the f%inanciers
who conceived and organized the
steel corporation resulted in a mass
of figures which showed enormous
profits to those who We're interested.
In speaking of watered stocks the
majority comment is:
I'm some instances stocks were not
'watered' in the ordinary acceptance
of that term; they were literally de-
luged. The cost of constructing or
reproducing the several plants consti-
tutlns the combine was in~consequen-
tial as compared with the value of
this new device for enjoying with
immunity an old and hitherto forbid
den privilese-an absolute monopoly
in a valuable n necessary article of
commerce."
From Julian Kennedy, an engineer,
ment of the National Tube
a subsidiary of L. S. Steel. by ]. Pier
pont Morgan. He told the commit
tee that he investigated the condition
OF the tube trade and found that the
actual value of those plants did not
exceed $4,000. 900, and that the
owners were demoralized and dis
heartened." The committee COM
nlents on this situation as follows:
"Undisn1ayed by this dismal pros
pect, j. F. Morgan & Co, with an
amazing audacity, launched this new
sl9,0oO.0o0 monopoly on its course
"t.i q 10 SdplldllZdtIoL OIL SoU,UUU,.
900. and received as compensation Sc
curities of this concern ~aggregating
$40, 600, O0O."
Representative Beall Of Texas made
a study of the Gary dinners infu-
ences on the steel trade. He wrote
that portion of the report which deals
with them. His comment on them
follows:
That Gary Dinner.
Accepting the dinner of January,
1911. as fairly typical of the rest and
the things said and done there as
fairly representative Of the things
said and done at the others, we think
the conclusion is irresistible hat the
Gary dinners We're instituted as a
means of conveying to the entire steel
and iron industry information as to
what the attitude Of the United States
Steel corporation was upon the ques-
tions Of output and prices and of i'm
pressing upon all engaged in the in
dustry that 1t vas the part of wis
dom and prudence to govern them
selves accordingly.
w further believe that by this
means prices were maintained, out
put restricted, territory divided, com-
petition sti1ed and trade restrained,
just as certainly. just as effectively,
and just as unlawfully as had been
done under the discarded pooling
agreements of former years."
Representative 'McGillicuddy, who
studied the labor condition in the
steel mills. found that the corpora
ton was opposed to organized labor