Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1912-08-01
MINORITY STEEL
REPORT NOW OUT
It Favors Legalization and Regu-
lation Of Trusts instead Of
Their Dissolution.
RECOMMENDS U. s. CHARTERS
Would Require Recapitalization
Of Corporations at Actual
Value if Now $4,000
900 or More.
RECOMMENDS US. CHARTERS

tlOn faVOring the legaliZatIOn ana rcgu-
lation of big Industrial concerns, instead
of their dissolution, is to be submitted to
the House In n report by three repub-
lican members Of the steel investigating
committee. The report was sicned by
Representatives Gardner of Massachu-
sets. Young of Michigan and Danforth
Of New York. Representative Young sub
mitted an additional statement. and Rep
resentative Sterling of Illinois, who be-
lieves In dissolving the big combinations
will submit a separate report
The report advocates the creation of an
Interstate commission of industry to be
clothed with extensive powers of re9ula-
ton. and with power to Fix rcasonapie
prices for the output of corporations
The report would require that all cor
porntions capitalized at $4,000 CO or more
operate under "A charter to be issued by
the United States, before engaging in
interstate commerce. Smaller corporations
might avail themselves Of the federal
charter at their own option.
All corporations availing themselves Of
the United States charter would be cap
ita'ized at their actual value The report
oommends the work of the bureau Of
corporations. II also approves the So
called Brandeis bill which would transfer
the burden OF proof to defendant cor
porations to show that they are In "rea-
sonable' restraint of trade. II approves
the measures calculated to prevent in
tcrlocking directorates and Of the demo-
cratic members Legislative program, the
republicans say:
APPROVE BILLS DRAFTED.
THE principles contained in the hills
drafted by the majority are distinctly
worthy of communication. and we give
them our approval But If the policy Of
dissolution favored by the majority ia
TO be pursued, much additional legis,a
ton Is required before proper dissolution
can DC obtained. This legislation the ma
Jority has scarcely outlined"
Inc republican members make it plain
that the report Is not an expression of re-
publican policy or dictated by the repub
lican administration. insisting that the
committee members stand on their own
bottom in enunciating their views.
The report does not spare the steel
trust or its organizers. j. p Morgan &
Co. are credited with a profit of So, 800 400
for underwriting the organization of the
United States Steel corporation. Labor
conditions in the steel mills are declared
to be bad and a suggestion Is made to the
corporation to improve them by working
mill hands In eight instead of 12-hour
shifts.
The report thus summarizes its find
ings:
the corporation was capitalized at ST.
4oo@'0o. OF which nearly one-half was
water
The average annual earnings of the
corporation have been from II to u per
cent on the actual value of it's assets.
UNDERSTANDING AS TO PRICES.
THE corporation controls a little
over one-half the crude and finished
steel business of the United States.
THE average wholesale price of
steel products has fallen off since the
corporation was organized
THE corporation and all the inde-
pen dents have an understanding as to
prices.
THE system of interlock!ng direc-
torates has insidious consequences
and facilities inside management an !
the sitting of competition.
The situation as to iron-ore supply
is grave and may become menacing.
Labor conditions in certain depart
ments of the steel industry are bad"
Many recommendations are summit
tel although no bills have been pre-
pared. The working out OF the plan
contemplated Is left to the future. The
minority eptomizes its recommends
lions as follows:
"All corporations exceeding $50. OOO. 0O(
lin capitalization or valuation must become
United States corporations before enter
ling Interstate commerce. For smaller
corporations, United States charters are
voluntary.
An United States corporations must be
recapitallzed at their actual value
AN Interstate commission of industry
like the Interstate commerce commission
20 be established. Publicity TO be provided
for.
COMMISSION TO FIX PRICE.
| when the price fixed by United
States corporation has been found to be
unreasonable, the Interstate commission
OF industry must publicly declare that fact
and recommend n reasonable price.
"Interlocking directorates and holding
companies forbidden except when per
mitted by Interstate commission OF IN
dustry.
| "If foregoing recommendations shall
proye insufficient to meet the trust prob
lem. the interstate commission of indus
try ought to he given carefully guard
cd mower to decree maximum prices
| when necessary
| industrial corporations not TO own car.
riers.
| Unreasonable restraint of trade de-
fined and burden of proof of reasonable
nass' transferred to the defendant.
"Indiyiduals and States to have the
opportunity to intervene In government
suits.
Extensive powers and Instructions for
courts when combinations are adjudged
illegal.
Recommendation to the United States
steel corporation-That in the blast fur
naces and rolling mills three shifts OF
mon. working eight hours each. ough
to take the place OF two shifts OF mer
working ~ hours each.
The republicans take up the majorit,
renort and criticise II In detail. In dis
nutIna the findings of fact, the minorit,
report says:
TRUST PICTURE OvERDRAWN.
"By singing out unusual incidents ant
unusual evidences. selecting ususua
wears ususual prices, and unusual prac
ucas a. q standard Of comparison. the ma