Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1912-08-03

49, AAooeSt
w. Perkins, James j. Hill, the late
John w. Gates and others prominent
in the railway and steel world were
heard at length. The committee took
thousands Of pages Of testimony and
spent many thousands Of dollars.
During the progress of the hearings
a difference Of opinion between the
chairman, A. O. Stanley Of Kentucky,
and Representative Gardner OF Massa-
chusetts caused near fist fight and
at one stage of the proceedings
George W. Perkins Of New York was
threatened with jail sentence for de-
clining to answer question as to his
contributions to the republican cam
paign in 1908. Later the chairman Of
the committee. Mr.. Stanley, with
drew the question.
Stocks Literally Delayed.
The effort of the committee to
master the moves Of the financiers
who conceived and organized the steel
corporation resulted in maze OF fig
ures which showed enormous profits
to those who we're interested. In speak
ing 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
deluged The cost of constructing or
reproducing the several plants consti-
|tuting the combine was inconseuuent-
ial as compared with the value OF this
new device for enjoying with immunity
an old and hitherto forbidden privi-
lege-an absolute monopoly In valu-
able and necessary article of COM
MERGE"
From Julian Kennedy, an engineer.
the committee traced the development
OF the National Tube Co., subsidiary
OF United States Steel, by j. Pierpont
Morgan. He told the committee that
he investigated the condition Of the
tube trade and found that the actual
value of these plants did not exceed
$19 100000 and that the owners were
|demoralized and disheartened.'' The
committee comments on this situation
as follows:
"Undismayed by this dismal pros
pect, J. P. Morgan & Co. with an
amazing audacity, launched this new
$40 100000 monopoly on it's course
with total capitalization Of $80.000,-
900, and received as compensation
securities of this concern aggregating
SIC, 100000
The Gary Dinners.
Representative Beall Of Texas made
study OF the Gary dinners influence
on the steel trade.
He wrote that portion OF the report
which deals with them. His comment
on them follows:
Accepting the dinner Of January.
~ g. Ill -
the things said and done there as fair
~ representative of the things said and
done at the others, we think the con-
clusion is irresistible that the Gary
dinners were Instituted as means OF
conveying to the entire steel and iron
industry information as to what the
attitude Of the United States steel cor
poration was upon the questions OF
output and prices and of impressing
upon all enga ged in the industry that
it was the part Of wisdom and prudence
to govern themselves accordingly.
1--WE further believe that by this
means prices were maintained, output
restricted, territory divided, competi-
ton stifled, 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"
The Labor Question.
Representative McGilIicuddy, who
studied the labor condition in the steel
mills found that the corporation was
opposed to organized labor and prefer
red foreign labor.
THE result" he says. "is that about
so per cent Of the unskilled laborers In
the steel and iron business are foreign
ers Of these classes. With the benefit OF
a skilled American foreman such a
crew can work out results in unskilled
labor production. The profits Of this
system Of labor employment go to the
steel corporation, while the displaced
American workman shifted as best he
could"
In discussing the ownership Of rail-
roads and steamship lines by the steel
corporation the report says:
There Is no question that public
interest requires segregation OF rail-
| roads and the steel corporation. The
control Of such public agencies by an
I Industrial corporation carries with Il.
| in addition to the advantages which
this record discloses, possibilities of
even greater abuses"
The 1907 Panic Held Artificial.
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