The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1912-08-02
FLAYS STEEL COMBINE
FOR STIFLING RIVALS
,coatInaed fram paes onsI

CdpdFlty IOf iaAliOeu
Another bill seeks divorce OF in
dussriaI and common carriers by pro
hibiti,g mining or manufacturing
companies from owning stock IN any
carrier.
The committee also recommends
that the bureau OF corporations re-
port &c congress In addition 10 the
president, providing publicity oil cor
pcrate combinations.
Caslrman Stanley, OF Kentucky;
Rep. Bartlett. of Georgia; Rep. NC
GilliCuddy, of Maine, and Rep Beall'
OF Texas, all Democrats--concur IN
all OF these recommendations KEEP.
Littleton (Dem., ~ ", dissents only
from the bin changing the burden OF
proof.
That ]. P. Morgan 4 Co. received
Ia fee OF S62.500000 for underwriting
the steei syndicate, Is asserted.
"The steel corporations capitaliza-
ton is S1,T45,724,2s4.4S," the report
declares. but this sum. huge as II is,
IN no degree determines Its actual
power"
Con- nuing. the report cites where
the vest holdings of directors OF the
trust" III other corporations totals
up into staggering millions.
The Morgan Gary Perkins plan for
federal incorporation and price-fxing.
the Democrats declare is "semi-so-
cialistie," and the present situation is
best Itmedied by publicity and strict
enfort tment of laws.
"Hau the character OF the steel
corpora ion been known at the time
OF the absorption of the Tennessee
Coal 4 Iron Co, IL is highly i'm
probable that the chief executive
would III 20 minutes have given his
consent TO a merger fraught with in
finite injury to the steel industry and
the public alike" the report says.
Bitterly criticizing Roosevelt for
this merger, the report processes its
inap.lity to understand how panic
which resisted the utmost endeavors
OF MOI gan and Rockefeller 10 quell.
should suddenly have passed away
with the absorption of few paltry
millions, at Rooseyelts permission.
The Steel trust was not watered,
the report says 1T was deluged"
Stanley epigrammically puts II. The
repoIl purports to give the story of
steel from the first hearth furnace
down 10 the big mills of the present
day.
That the trust is inimical TO labor
unions and its employees live under
= conditions too revolving 10 detail is
asserted.
Reps. II. Olin Young, of Michigan.
and John A. Sterling. of Illinois. pre-
sented separate minority reports.
Young particularly discussed the OBJ
jects aimed at in formation of the
u. s. Steel corporation and denied
that The trust" had profited through
their own Vaccinations, in favorable
railroad rates. Sterling declared that
he could not agree with the minority
reports opinion that the true remedy
for Industrial evils did not lie in dis
solution OF the combines. Complete
disspiItion he said, was the most
adequa'e reform.
Young claimed that the Interstate
Commerce Commission should inves-
tigate some Of the rates on roads
owned by the Steel Corporation. In
many cases, he said, those railroads
received an excessive and unfair
share Ia the through rates. though
this share, he asserted, had been fix
ed long before the trust" assumed
their control.
The Steel Corporation. Young said,
was organized 10 obtain greater eff
ficienoy in manufacture, TO promote
sto>K market profits. and to lesson
severe competition 1t was originally
oycr-car italized, but the Michigan
representative declared this water"
had 20 a large extent been absorbed
by recent extensive investments and
earnings.
That prior to the trust" orgsniza.
ton several corporations engaged in
manufacturer plates and iron and
wire, which subsequently became sub
salaries OF the combine were actual
ly involved in an illegal pool. and
continued these illegal acts for a time
after they were thus absorbed. was
admitted by Young. He declared.
however, that these illegal contracts
were brought TO an end by the direct
Intervention Of Judge Gary"
Gary denied any knowledge of the
wire pocls.' Young said. The cir.
cumstances, however, indicate that
some OF the officials of the corpora
tion must have been cognizant OF
these acts.
One Of the main purposes of the
1oiy ulnheIs Nds Dy creating con-
fidenco and friendly relations among
the manufacturers OF steel. to main.
tain prices and prevent destructive
trade wars
Under the head OF monopoly"
Young declared that the Steel cor
poration controls about onehalf OF
the ore in Lake Superior district
(saye the Hill lands, option on which
the trust has cancelled), and one
half the Birmingham field. 1t owned
smaller proportion OF the coking
coal, and produces a little more than
half OF the products. For this reason
Young said, 'it lacks very much OF
being q monopoly"
One other point brought out In the
report was that while the production
by the Steel trust has steadily de-
creased, the national output has in.
creased.
Iron and steel prices, Young as.
serted, had generally tended toward
lower levels, and the Steel CORPORA.
tion had steadied the fluctuations
Prices now, he said. are as low and
probably lower than they would have
been n the corporation had not ex.
isted.
An elaborate statement OF the Ten.
nessee Coal q Iron absorption was in.
cluded In the report. together with
an 1f n