The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1912-07-18
MORGAN RAPED BY
STANLEY REPORT
Roosevelt and Perkins Also Sc.
verely Criticized.
ASK LAWS TO CURB TRUSTS
Republican Members Of investigating
Committee Find That v. 8. Steel
Corporation Has No Monopoly
In This Country.

Washington, July l6.-The Stanle!
committee steel report, with recon
mendations for Legislation to curb thu
United States Steel corporation ant
other giant monopolies Of the country
will be made public the latter part Of
next week. Daily conferences on tbs
report and accompanying propoted leg
islation are being held by Chairman
Stanley and his colleagues.
Representative Young. ranking Re
publican member of the committee
has prepared minority report which
he has submitted to the other Repub
lican members. 1t In large measure
is a defense Of the steel trust. 1t holds
that the steel trust has no monopoly
OF the steel business OF the country OF
If the iron ore.
Recommend New Laws.
Legislation recommended In the
Stanley report will cover the follow.
ing:
The prohibition OF ownership by one
corporation in another corporation.
Prohibition Of holding corporations
for Industrial concerns.
Requiring industrial concerns to re-
llnquish control Of common carriers,
both railroad and steamship lines. and
restricting them strictly to the opera
ton Of plant facility roads.
Prohibiting monopolistic control
through leases or ownership of ore
bodies or other raw material.
Declaring illegal all friendly rate
and price agreements and meetings
such as the Gary dinners.
Colonel Roosevelt, ]. Pierpont Nor
cized severely in the report for their
connection with the purchase Of the
properties Of the Tennessee Coal and
Iron company by the steel trust, which
purchase Is condemned as illeg-l I'M
der the Sherman antitrust law.
Morgan Severely Criticized.
A separate chapter is devoted to the
activities Of Mr.. Morgan in the steel
business before the steel trust was
formed, and with reference to the or
ganization of the steel trust. 1t tells
how Mr. Morgan first got together a
number of steel tube mills which an
expert valued at s17,00O,000. Some Of
them were in bad financial shape, and
when threatened with competition by
John d. Rockefeller, these plants were
thrown into the steel trust at valua-
ton of about $S0.000,000. Following
this criticism OF the gathering in by
Mr.. Morgan OF extensive profits there
is discussion in the report of the
enormous sum paid Mr.. Morgan for
his services In the organization Of the
steel trust and for his work as fiscal
agent in the conversion Of early bonds
of the organization. 1t is held that
these excessive profits and charges
were carried into the Steel corpora
ton and were responsible Ii part for
its excessive overcapital!zation.
There Is caustic comment In the re.
port on the fact that Mr.. Morgan fed
the country to escape the subpoena
when he learned that the committee
desired his testimony in connection
with its Investigations into the steel
business and the part taken by Nor
gan in the absorption of the r. c. &
property, Mr.. Morgan has not re.
turned.
Roosevelt Is Arralsned.
Colonel Roosevelt Is arraigned for
alleged violation OF the law when he,
as president. sanctioned the Steel
Trust-Tennessee company transaction
to oblige Morgan and Judge e. H.
Gary.
Mr.. Perkins activities in political
campaigns and his connections with
political contributions is discussed Re-
greet is expressed that majority of
the committee decided not to compel
Mr.. Perkins to disclose all he knew
of contributions by the steel trust fol
political purposes. to whom they were
given and for what purpose they were
expended.