The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-08-02
Drastic Legislation Provid-
ing for an Amendment TO
the Sherman Antitrust
Law Recommended.
LIMIT OUTPUT TO
THIRTY PER CENT
This Is Suggested as Amend
ment.- Dissenting Report
to Investigation Is Made
by Young.
(Nationsl News Association


WASHINGTON. Aug. 2.-That the
United States Steel Corporation was
organized by ]. III. Morgan and Co,
for the purpose of monopoiizing the
steel industry of the country. is the
basis OF the report of five Democratic
members of the Stanley Steel Trust
Investigation committee, which was
presented TO the House of Representa-
tives today.
Drastic legislation providing for an
amendent to the Sherman antitrust
law, a bill to prohibit persons engaged
in the manufacture or sale of railroad
supplies from becoming directors in
railroads engaged in interstate COM
merce and a bin TO regulate the own
ership of common carriers engaged in
interstate and foreign commerce, are
recommended by the committee.
The provisions of the amendment to
the Sherman antitrust law were made
public few days ago. The most inn
portant of these limit the output of
any corporation to 80 per cent of the
total quantity of any article sold in
the United States; permit an individ-
ual to bring suit in equity against
corporation under the Sherman anti
trust law, and IN a suit for dissolution
under this law provides that the defen-
dant must furnish the proof as wheth-
er the restraint is reasonable or not.
Recommendations Made.
The recommendation of Judge Gay
and Andrew Carnegie before the COM
mittee. providing for the control of
corporations by the Federal govern
ment is not approved. Such control
says the committee semi-socialistic in
it's nature. is beyond the power vest
congress.
Representative Littleton of New
York. member of the committee. con-
ours with his colleagues in the report
on the investigation and two OF the
| bills recommended, but submits a dis
senting opinion on the proposed am
endment to the Sherman antitrust
| law
A dissenting report on the investi-
CATION was submitted by Representa-
tive o. H. Young of Micigan one OF
mittee and another will be presented
by the remaining Republican men,
bers.
| Findings of Committee.
Important findings revealed IN the
majority report are:
That the United States Steel Cor
poration organized for the purpose of
monopolizing the steel products OF the
country.
That the organization of the various
subsidiary corporation revealed an ex-
tensive overcapitalization. In this con-
nection the report makes the terse
comment that I'm some instances the
stocks were not watered in the ordi-
nary acceptance of that term: they
were literally deluged-
That the purchase OF the Carnegie
Co, by the L. s. Steel Corporation
was not made for the purpose OF ac-
qriring a mill. but for the elimination
of Andrew Carnegie. their most dan
gerous competitor.
That the fnanciers who promoted
the L S. Steel Corporation In less
than 40 days created new values on
paper of over $500. .000. 900.
That this overcapitalIzation worked
an untold injury not only upon the
stock holders of the Steel Corporation
but also upon the industry itself
That the purchase OF the Mesabi
Ore Fields by the Steel Corporation
and the agreement between the Hill
interests and the Steel Corporation.
were made for the express purpose Of
monopolizing the ore reserves in the
Northwest and of the transportation
lines by which iron ores were carried
to Lake Superior.
That the Gary winners were devised
to circumyent the Sherman antitrust
law by avoiding direct and positive
agreements in restraint of trade
Low Wages
That revolving conditions exist In
the home lives of the laborers en-
lployed by the steel corporations as a
result Of the long hours and compar-
atively low wages.
That the company supply store sys-
tenn which the Steel Corporation has
established In it's various colonies
shows profits and dividends entirely
out of the ordinary
That the antagonism OF the Steel
Corporation TO organized labor has re-
l..