Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1912-07-29
Republican Members of House
Steel Trust Committee Favor
Federal Supervision Instead
of Dissolution.
INDUSTRIAL COMMISSION
URGED BY MINORITY
This Would Require All Con-
Germs with Fifty Million DOL
lars Capital or More to OPP
erate Under Federal Charter.

lars Capital or More to OPP
erate Under FederaI Charter.
ny Mornins journal rrrcrni LssscA wiret
Washington, July 2S.-A recon-
mcndation fnNoring legislation for the
regulation OF big industrial concerns
instead OF their dissolution. IS to be
submitted O. the house IN report
by three republican members OF the
steel Investigating committee.
The report was signed hy Repre-
sentatives Gardner, of Massachusetts.
Young, OF Michigan. aud Danforth. OF
New York Representative Young
submitted an additional statement
and Representative Sterling. of IIl-
nois, who believes IN dissolvng the
big combinations. Will submit scpa-
rate report.
The minority report favors the cree
alton Of an interstate commission of
industry to bo clothed with extensive
powers OF regulation ana with power
to fix reasonable prices for the out
put Of corporations. The report would
require that all corporations capital
izcd at so0,00O.O0 or more operate
under federal charter, before en-
gaping in Interstate commerce. Sinll4
lar corporations might avail them-
solves OF the federal charter ut their
own option.
The republican members make u
plain that the report is not an cX-
preston of republican policy or die
tated by W republican adminlstr1-
ton.
The report docs not spare the sic
trust on its organizers ]. =. Morgan
| a. Co., are credited with profit OF
s62. 500 900 for underwriting the or
ganzation of the United states steel
corporation.
Labor conditions In the steel mills
are declared bad and suggestion IL
made to the corporation to improve
them by working mill hands in eight
| instead Of twelve hour shifts.
The report thus summarizes ita
findings;
'rhe corporation was capitalized at
81 400. 600 000 of which nearly one
half was water
The average annual earnings of
the corporation have been from II
to IL per cent on the value Of us as
sets
"'rhe corporation controls 4 little
over one-half the crude and finished
steel business Of the United States.
The average wholesale price OF
steel products has fallen Off since the
corporation was organizcd.
"The corporation and all the nde
pondcnts have an understanding as
to prices The system of interlocking
drectoratos has insidIous conse-
quonces and indicates inside man
agemcnt' and tho sitting Of competi-
tion.
"The situation ns 70 iron ore supply
is grave and may become menacing"
MANY recommendations are sub
mitled. although no bills have been
prepared The minority report epito-
mics its recommendations as fol-
lows
All corporations exceeding $780,,
600, 900 In capitalization or valuation
must become United states corpora
lions before entering Interstate COM
merce For smaller corporations
United states charters are voluntary.
All United states corporations nust
be recapitalized at their actual value.
An Interstate commission Of Indus
try like The Interstate commerce COM
mission should he established.
Publicity TO be provided for. When
the price fixed 10y United States cor
poration has been found unreason-
able, the commission OF industry must
recommend reasonable price.
lntorlocking dircotorates and hold
ng companies foibiddcn except when
n.rujtt.1 f,N Interstate commission OF
II foregolng recommendations shalf
prove Insufficient To meet the trust