The Calumet news., 1912-07-29
Does Not Believe Power to Fix
Prices Necessary to Eff
cheney of Control
TAKE ISSUE WITH MEMBERS
Signs Minority Report But Adds
Conclusions of Own
DEFENDS THE TENNESSEE DEAL

Washington, July 29.-In a supple
mentary report by Congressman II. O.
Young. of Ishpeming. a member OF the
special committee to investigate the
United states Steel corporation. sub-
mitted today, Mr.. Young says:
have Joined with my Republican
colleagues upon the United states
Steel Committee in their report and
recommendations, except that | dc not
agree with them that il is necessary
| TO prohibit Industrial corporations. un-
der all circumstances. from owning
common carriers, or that IL is advisl-
bic or necessary to invest the Federal
agency 10 be intrusted with the supei-
vision and control of large corpora
tions engaged in interstate commercs
with the power 10 fix prices.
Under ordinarp circumstances
should content myself with such ac-
ton, but the majority of the commit
tee have united in a report of some
200 pages. a very large proportion
of this report purports TO be a state
ment Of the facts elected by tie inves-
tigation of the committee This state
ment is so overdraNn prciudiced. in
accurate. and exaggerated that l feel it
ought not 10 go unanswered.
II is true that the report Of the Re-
publican members of the committee.
signed by me- does in a general way
deny emphatically many of the misrep-
reservations of the majority report, bus
feel that it is necessary i'm order tina,
a correct picture of the situation may
be given To ~ further than this.
hence this supplementary report.
Mr. Young's conclusions are as fol-
lows:
Organization.
I. The United States Steel Corpora
tion when organized was greatly over
capitalized, bat to great extent this
mas been remedied by extensive i'm
vestment Of earnings since its organ
ization.
?. The objects aimed at i'm the or
ganization Of the United states Steel
Corporation were:
Ia) Greater integration and the con-
sequent increased economy and e:T-
cheney IN operation and the avoidance
of paying 60 outsiders.
tb) Promotion and stock market
profits.
() Lessening Of severe competition.
Railroads.
3. The Interstate Commerce Com
mission and the several state railroad
have ample power to cor
rect all practices incident TO the own
ership of railroads by the corporation
which are unfair 60 competitors OF
inimical TO the general welfare To
claim that it has no such power is to
say that 1t has utterly failed i'm the
purose for which it was created and
given it's present extensive powers and
To leave little excuse for IT'S further
T. In some instances the share of
the through rate received by the rail-
roads owned 10y the United states Steei
is so excessive az To call
for carly action by the Interstate-Com-
mcrce Commission. II is but just 10
state. however. that these rates were
all inherited by- the United states Steel
That i'm no instance nave
they been increased by the United
States Steel Corporation. although in
some instances they have been lowered
10y that corporation, and that the prac
tice denounced is shared by many otn-
er manufacturers in many lines of bus
mess.
Restraint Of Trade.
=. Previous 10 the organization of
the United states Steel Corporation
several corporations. engaged la the
of plates. structural iron.
and wire. some OF which subsequently,
became subsidiaries of the United
States Steel Corporation. entered into
illegal pooling contracts. fxing prices.
and dividing production on perccn-
tage basis. Under those contracts
they continued TO act after the orsan-
i2ation of the United States Steel Cor
poration, In the case Of plate ana
structural iron agreements until Jan
uary I. 1905. and IN the ease OF ths
wire agreements until a later date.
The plate and structural steel aggee-
ments were brought TO an end by the
direct intervention or Judge Gary.
Judge Gary denied any knowledge of
The existence OF the wire pools. ana
there Is no evidence To the contrary.
frh. oirptt,aafapgaa arc c,1gh HoWax-ar