The Calumet news., 1912-08-02
Majority Report of Investigating Committee Assas the Corporation
Generally, But Does Not Invade Jurisdiction of ST.
preme Court in Which Suit is Pending
THREE BILLS RECOMMENDED TO CURE TRUST
EVILS AND MEET THE EXISTING CONDITIONS

highly improbable that the Chief Exc
cutiye wodld In 20 minutes have given
his consent TO merger fraught with
infinite injury To the steel industry ana
To the public alike.
The Commissioner Of Corporations
should be required to report TO Cen
gress as well as TO the president o;
the United states. al such times ana
upon such conditions as ii may pre-
scribe and the1la law creating this bu-
reau should be SO amended as 10 make
such reports mandatory upon the
Commissioner of Corporations.
Railroads Should Be Separate.
The enormous earnings OF the Steel
Corporation are due not TO a degree Of
of efficiency not possessed
by its competitors. but to the owner
ship of ore reserves out of all pro-
portion to its output or requirements
and TO the control and operation OF
common carrier. divisions OF rates. and
the liberal allowances obtained from
other concerns through incquhabie
and inordinate terminal allowances.
The business Of production and trans
portation should be absolutely separate
and distinct. and no industrial concern
should be permitted 10 own or operate
an interstate carrier.
The Attorney General of the Unit
es states and his subordinates shonG
not he permitted TO exercise an absos
lutte discretion as 10 the institution on
proceedings under the act OF July 1.
1890, known as the Sherman antitrust
act. or other acts prohibiting COM
binations in restraint of trade. The
parties injuriously affected by such
combinations should have access TO the
courts and the benefit of adequate ana
sufficient remedies for wrongs inflicted
by such combinations"
Three Bills Recommended.
The legislation recommended by the
majority consists Of three bills one OF
them. commonly known as the Bran
deis bill is designed to give an injured
party the right 10 institute suit to pre-
vent the organization Of a c1mbina-
tion i'm restraint of trade. This bill al
so transfers The burden of proof to the
defendant corporation 10 show that it
is a combination within reasonable
restraint of trade" The bill recon-
mended by the committee has long
been pending before Congress, having
been introduced by Senator LaFollette
and Representative Lenroot
Another bill would provide that mo
person who is engaged as an Individual
or as a member of n partnership. or
as director or other officer. or an
employe of corporation in the bust
ness. in whole or in pare. of manufac-
turing or selling railroad ears or To-
comotives or railroad rails or struc-
ural steel, or mining and selling coal
shall act as director or other officer
or emplove OF any railroad company
which conducts an interstate. COM
merce business
Stocks Were "Delueed."
The efforts of the committee TO mas
Ter the moves of the financiers Who
conceived and organized the steel COZ
poration resulted in a maze OF figures
which showed enormous profits to
those who were interested. In speak
ing Of watered stocks the majority
comment is,
"In some instances stocks were no.
watered' in the ordinary acceptance os
that term: they were literally delLged.
The cost of constructing or reproduc
ing the several plants constituting the
combine was inconsequential as COM
pared with the value OF Uis new de-
vice for enjoying with Immunity an
old and hitherto forbidden privilege
an absolute monopoly in a valuable
and necessary article OF commerce"