Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-07-29
Findings Summarized.

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The report thus summarizes it's find
ings:
The corporation was capitalized at
81. 400 600, 600 of which nearly one-half
was water
THE average annual earnings of the
corporation have been from II to II per
cent of the actual value of its assets.
THE corporation controls a 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 corpora
ton was organized.
ents have an understanding as to prices.
The system of interlocking director
ates has insidious consequences and ia
cilitates inside management and the
sitting of competition.
The situation as to iron ore supply is
grave and may become menacing.
Labor conditions In certain depart
ments of the steel industry are bad
Many recommendations are submitted.
although no bills have been prepared.
The working out of the plan contemplated
is left to the future. The minority
epitomiZes its recommendations as fol-
lows:
"All corporations exceeding $50 600, 900
in capitalization or valuation must be-
come United States corporations before
entering Interstate commerce. For small
er corporations United States charters
are voluntary.
"All United States corporations must
be recapitalized at their actual value.
AN interstate commission Of industry,
like the interstate commerce commission,
to be established. Publicity to be pro-
vided for.
when the price fixed by a United
States corporation has been found to be
unreasonable, the interstate commission
of industry must publicly declare that
fact and recommend reasonable price.
'Interlocking directorates and holding
companies forbidden except when permit
ted by interstate commission of indus
try.
IF foregoing recommendations shall
prove insufficient to meet the trust prob
lem, the Interstate commission of indus
try ought to be given carefully guarded
power to decree maximum prices when
necessary.
industrial corporations not to own
common carriers.
Unreasonable restraint Of trade de-
fined and burden Of proof of 'reasona-
bleness transferred to the defendant.
individuals and states to have the OPP
portunity to intervene in government
suits.
Extensive powers and instructions
for courts when combinations are adj
Judged Illegal
Majority Report Criticised.
report and criticise it in detail. In dis
putting the findings Of fact the minority
report says:
by singing out unusual incidents and
unusual evidence. selecting unusual years,
unusual prices and unusual practices as
standard OF comparison. the majority
has created an overdrawn picture por-
traying diabolical ingenuity and sinister
malevolence as the characteristics of the
United States Steel Corporation officials"
The report of Herbert Knox Smith.
commissioner of corporations, is indorsed
by the minority for the most part They
agree with him that of the 81, 400, 600 900
of capital of the steel corporation in
April 1901. 5000. 100000 or S7OO coo, 900 was
water. They also agree that for the
decade from 1901 to 1910 the trust earn
ngs averaged from IL to IL per cent The
minority further finds that the steel cor
poration has generally fixed prices and
Independents have followed" The Gary
dinners are said to be the gastronomic
shadow of the price understandings rath-
err than their substance"
"The system of interlocking directories
has insidious disadvantages which no
man can gauge" says the report. 1--WE
doubt the wisdom Of their absolute pro-
hibition, unless the regulation shall fail
to abate their evil
Condition of Labor in Steel Plants.
The report devotes the following para
graph to the labor situation in steel trust
plants:
The labor situation in certain manu-