New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-08-03

The Commissioner OF Corporations
should be required TO report TO Congress
as well as to the President OF the United
States. at such times and upon such con-
ditions as it may prescribe. and the law
creating this bureau should be SO
amended as to make such reports man
datory upon the Commissioner OF Cor
porations.
The enormous earnings of the Steel
Corporation are due not to degree OF m
tegration of efficiency not possessed oy
its competitors, but TO the ownership co., oi
ore reserves out OF all proportion to It's
output or requirements, and TO the con-
troll and operation of common carriers,
divisions of rates and the liberal aIloN-
ances obtained from other concerns
through inequitable and inOrdinate ter
minal allowances. The business or pro-
duction and transportation should be ab-
soutely separate and distinct, and no IN
dustrial concern should be permitted W
own or operate an interstate carrier
The Attorney General of the United
States and his subordinates should not
be permitted to exercise an absolute dls-
erection as TO the institution or pToceeu-
ings under the act of July l, 1880. Known
as the Sheima ANTITRUST act, or otneI
acts prohibiting combinations In restrain.
of trade The parties injuriously anected
by such combinations should nave &C
cess to the courts and the beneht OF aue
quate and sufficient remedies for wrongs
inflicted by such combinations
Three Bills Proposed.
The legislation recommended by the ma
iority consists OF three bills. One OF
them. commonly known as the Brandels
bill, IS designed to give an injured party
the right to institute suit to prevent the
organization OF a combination in restraint
OF trade This bill also transfers the
burden Of proof to the defendant cor
10 n anOb inati
within reasonable restraint Of trade.
The bill recommended by the committee
has long been pending before Congress.
having been introduced by Senator La
FCllette and Representative Lenroot.
Another bill would provide that no
person who Is engaged as an individual
or as a member of a partnership or as
director or other officer or an employe
OF a corporation in the business, In whole
or In part, OF manufacturing or selling
railroad cars or locomotives or railroad
rails or structural steel, or mining ana
selling coal shall act as director or
other officer or employe Of any railroad
company which conduc's an interstate
commerce business"
The third bill is intended to hit at the
system OF interlocking directorates and
would separate Industrial from railroad
business.
The Steel Trust investigating committee
was authorized to begin its work on May
4. 1911. 1t has heard many witnesses and
made many trips of inspection and inves-
tigation. Among the witnesses have been
most OF the great American fnanciers OF
,,-itI ton n Il
PierpOnt Morgan. Andrew Carnegie, r..
II. Gary, George W. Perkins James j.
HILL the late John W. Gates and others
prominent in the railway and steel world
we're heard at length. The committee
took thousands Of pages Of testimony
and spent many thousands of dollars
During the progress of the hearings
differolce OF opinion between Chairman
Stanley and Representative Gardner
caused a near fist fight, and at one stage
OF the proceedings George W. Perkins. Of
New York. was threatened with a jail
sentence for declining to answer ques-
ton as to his contributions to the Re-
publican campaign in 1913. Later the
chairman OF the committee, Mr.. Stanley,
withdrew the question.
Tells of Watered Stocks.
The effort OF the committee 10 master
the moves OF the financlers who conceived
and organized the Steel Corporation re-
suited in maze OF figures which showed
enormous profits to those who were inter
ested. In speaking OF watered stocks the
majority says:
In some Instances stocks were not wa
tered" IN the ordinary acceptance OF that
term: they were literally deluged. The
cost OF constructing or reproducing the
several plants constituting the combine
was inconsequential as compared with
the value OF this new device for enjoying
with immunity an old and hitherto FOR
hidden privilcge-an absolute monopoly In
"a valuable and necessary article or COM
merCe.
From Julian Kennedy, an engineer the
committee traced the development OF the
National Tube Company. subsidiary or
United States Steel by J. Pierpont Nor
gan. He told the committee he invesu-
gated tho condition OF the tube trade and
found the actual value OF these plants
did not exceed 100000. and that the
owners were demorallzed and disheart-
ened." The committee comments on this
situation as follows:
Undsmayed by this dismal prospect, j.
p Morgan a. CO., with an amazing au-
dacity. launched this new 100000 mo-
noDoly on its course with total capt.
tailzation OF 100000 and received as
compensation securities OF this concern
aggregating 100000.
Influence of Gary Dinners.