The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1912-02-28
$753,124,3S6. SO
Fourteen Conclusions.

Fourteen Conclusions.
Relating to restraint of trade there
are fourteen conclusions in the report,
one OF which deals with percentages of
business done by the corporation, and
in which the ore and other holdings
are discussed.
Percentages of the business done
by the United States Steel CORPORA
ton" the report says, ARE deceiving
and misleading unless segregated with
reference to particular products. For
example. Mr.. Roosevelt refers to an
estimate that the United States Steel
corporation did not have above so per
cent of steel properties or steel hold
ings, and when he was asked if Gary
and Frick. at the time of the purchase
Iof the Tennessee Coal & Iron Co., said
anything about the ore properties that
they were buying at that time, he
answered, They did not go into de
tails at all. n he also stated that he
understood they were going to buy the
Tennessee company's plant.
IF this estimate Of so per cent re-
fers to property and investment in the
steel business. 1t may be noted, in that
year (1907), that the total property
of the Bethlehem, Cambria, Colorado,
Lackawanna, Pennsylvania and Ten
nessee companies added to the capital
stock of Jones & Laughlin, because
statement of property is not available,
amounted to 1865, 76S,SS9, these COM
panies being the only important con-
Germs in the steel business in the
United States outside Of the United
States Steel corporation. This amount
added to that of the United States
Steel corporation equals a grand total
of $1,S11.6 SOC, 339, of which the property
account of the United States Steel
corporation amounts to $l,445, 1877, 450,
or about so per cent
Conclusions in the report bearing on
restraint of trade are embodied in
fourteen sections. some containing
voluminous quotations from the min
utes Of meetings of the corporation
and of the subsidiary companies. sum-
married. the report concludes:
Competition Terminated.
Competition between previously
competing concerns was terminated by
the concentration of the control of ,It,-
wards Of $50 corporations into one
security-holding company known as
the United States Steel corporation.
"The United States Steel corporation
is merely a holding company engaging
in no business except the control
through stock ownership of the subsi-
diary companies.
There were acquired and brought
under single control. upwards II 1870
concerns in lines OF business allied
with the steel making business. in
Guiding ore owning and mining COM
panies which are now restrained from
competing in the sale of ore transpor-
tation companies through consolida-
ton of which every possibility OF
competition between these roads Is
prevented pig iron plants. coal and
coke companies, and many others
There were acquired a large umbe
of major concerns at much inflated
valuations, succeeding several increases
in a capitalization OF preceding in
corporations, due. in some cases, to the
greater combination value or merger
OF the consolidation, in which Of course
the units combined were restrained OF
any competitive activity. Specific in
stances are given under this head re-
lating to three processes OF combina.
ton as follows:
Original Combination.
'.The original combination of major
concerns to eliminate all possibility OF
competition. Combinations admitted
" or internally having a direct effect
to remove competition or in the ac-
complishment Of which the removal OF
competition was the declared or in
ferred object OF the consultations.
Other acquisitions in related lines
OF business for which no explanation
has been offered and none appears ex
cept the visible consequence. the re-
moval OF such concerns from the In
| dependent field.
ssThe requirement Of d large number
Of plants which were operated
and some Of them, d~isrnantled, being
removed from the competitive field
The requirement Of other plants.
such as the Clairton Steel Co, the
Tennessee Coal Il iron CO. and others.
Of which the report says .IsoIatedly
considered, the purpose In acquiring
Independents concerns may be entirely
49, ZLsZLL - 1890 @-~kH+~~a 9E9t2Z