Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1912-08-02

portion to ~ output or requirements
and to the control and operation of
common carriers. divisions Of rates.
and the lib sral allowan .es obtained
from other concerns thru inequitable
and inordinate terminal allowances.
The business OF production ana trans
portation should be absolutely separate
and distinct, and no industrial con-
Germ should be permitted to own or
operate an interstate carrier.
Legislation Recommended.
The legislation recommended by the
majority consists Of thres, bills, One
Of them, commonly known 40 tho
Brandeia bfil. Is designed to give An
injured party the right to institute suit
to prevent the organization of q COM
binatio In restraint Of trade This bill
also transfers the burden of proof to
the defenda3. corporation to- show that
1t is a combination within Reasonable
r. straint OF trade" Tho bin recon-
mened by the COMMITTEES fas long been
pending bafore congress- having been
introduced BY Senator LaFollette ana
Representative Lenroot.
Another bill would provide that mo
person who IL engaged as an individ-
ual or a. a member Of a partnership
or ~ director or other officer or an
ennploye of q corporation In the busi.
ness I'M whole or In part. Of manufac.
turing or selling railroad cars or loco
motives or railroad "a Is or structural
steel or mining and selling coal. shall
act as director or other officer or
employe Of any railroad company
which conducts an Interstate COM
merce business"
The third bill Is Intended to hit at
tho system of interlocklng directora-
tos. and would separate industfial
from railroad business
Hearing Was Thorough.
The Steel Trust investigating COM
mittee was authorized to begin It's
work on May I, 1911. Since that date
1t has heard many Witnesses ana
made many trips Of inspection ana
investigation. Among the witnesses
heard have been most OF the great
American financiers Of the present
age with the exception Of J. Pierpont
Morgan. Andrew. Carnegie. e. n Gary.
George w. Perkins. James ]. Hill. the
late John W. Gates and others promi-
nent In the railway and steel world
were heard At length. The committee
took Thousands Of pages Of testimony
and spent many thousands of dollars.
AZ TO Watsrsd Stocks.
The effort OF the committee to mas
ter the moves Of the nnancierD who
conceived and organized the steel cor
poration resulted In the mass OF hg-
ures which showed enormous profits
to those who were interested In
speaking Of watered stocks the ma
jo.ity comment 10:
I'm some instances stocks were not
'watered' in the ordinary acceptance
Of the term; they were literally de-
lused. The cost Of constructin8 or re-
producing piante constituting the com :
bine was inconseduent1al a. compared
with the value OF this new device for
erioyine with Immunity m old and
hitherto forbidden priviiege-an Abso-
lutte monopoly In a valuable And neces-
sary article Of commerce.
Accepting the dinner of January.
iS11, as fairly typical of the rest and
the things said and done there as fair
IL representative Of the things said and
done at the others. we think the con-
clusion IL Irresistible that the Gary
dinners were instituted as q means OF
conveying to the entire steel and iron
Industry Information as to what the
attitude Of the United States Steel
Corporation was upon the questions OF
output and prices and Of impressing
upon all engaged In the industry that
It was the part Of wisdom and pru-
6ence to govern themselves accord
tnsly.
'We further believe that by this
means prices were maintained. output
restricted. territory divided. compett-
ton stifled, and trade restrained. just
as certainly. Just 9as effectively, and
tust as unlawfuliy, as had been done
under the discarded pooling agree
ments Of former years.
Koessvsit's Part.
Tho part that United States steel,
the absorption Of the Tennessee Coal
and Iron Railroad Company. President
Roosevelt and Wall street financiers
played in the panic Of 1907 are COW
cred in the report and the insinuation
is made that the panic was an artific-
ial one designed for the benefit OF the
steel corporation.
In its comment the committee says:
How q panic which had persistent-
ly resisted the combined efforts Of the
federal government and John d. Rock
efeller and ]. p. Morgan & Co., and
remained in unabated fury after Nor
gan ana Rockefeller had turned loose
$50, ,oo0, 900 and the federal treasury
ss5. GOO 600, more should suddenly be
stilled by this manipulation Of Grant
b. schleys loans has not been ex-
plained either by Nr. Roosevelt or by
any other witness. Yet 1t IL urgently
~ maintained that the panic continued
prior to this magical scoop of securi-
ties and that the instant the steel cor
poration acquired the Tennessee Coal
4 Iron Company's stock 1t subsided in-
stantIy and Permanently"
The report occupies moro than 200
pages and much Of It 10 criticism Of the
methods OF the trusts. Andrew Car
negie's steel making methods and his
desire to extend his business are held
out a. the motives which compelled J..
Pierpont Morgan and his associates to
organise the steel trust
DREW Enoamous DIVIDENDS.
Havsmsysr lntsrssts Have Derived Big
Fsr4unss From epeeckIss Concern.
San Francisco. Aug. s2.-Ownership
Of one -half OF the common stock Of ths
Western Sugar Refining Company. the
John ID. and Ad0lph b. Spreckles con-