The Oskaloosa herald., 1912-08-01
MINORITY DIVIDED
!. ON STEEL REPORT
Split on Character OF Remedial
Legislation Needed.
ALL AGREE ON CERTAIN ITEMS
Federal incorporation Of Concerns En-
gagged In Interstate Commerce
Capitalized At $5o,ooo,ooo 10
Keynote Recommendation.


Washington, July 29.-The federal
Incorporation Of all concerns engaged
IN interstate commerce whose capital
Ization or value exceeds $4,000, 900, is
the keynote recommendation of the
minority members of the Stanley steel
Investigation committee. The report
of the Republican members Of the in
vestigating committee was made pub
lie today.
The full report is signed only by
Representatives Gardner and Dan
forth The remaining Republican
members, Representatives Sterling
and Young of Michigan file individual
dissents on the exact character OF
remedial legislation needed.
Federal Incorporation 10 Remedy.
Messrs. Sterling and Young agree
with their Republican colleagues that
federal incorporation Is a remedy for
present industrial evils, but they de-
cline to go so far as to recommend
the federal regulation Of prices, which
Gardner and Danforth advocate in
the event the situation cannot other.
wise be met.
The four Republican members agree
on the following salient findings OF
fact as developed by the long investi-
cation Of the United States Steel cor
poration:
That J. P. Morgan & Co. received
$62,500,000 for organizing the corpora
ton and that of the capitalization of
1,400, 000,00 nearly one-helf was wa,
ter.
Trust Controls Hall Of Industry.
That the average annual earnings
of the Steel corporation have been
from IL to IL per cent. Of its assets
and the corporation controls more
than one-half Of the crude and finished
steel business of the country.
That the average wholesale prices
Of steel products has been lowered
since the corporation was formed, but
that the corporation and all indepen'
dents have an understanding as to
price.
The system Of interlocking director
ates mas insidious consequences ant
tends to inside management" and tn.
sitting of competition.
Labor Conditions Bad.
That the situation as to the iron
ore supply is grave and may become
menacing and that labor conditions in
certain departments Of the steel indus
try are bad.
As a result Of this situation in the
steel industry the minority members
recommend the federal incorporation
OF all concerns with capital exceeding
$50,O00,000 which desire to enter IN
terstate commerce. These corpora
tons, so characterized, are to be
known as United States corporations
For corporations of smaller capital II
is recommended that charters shall be
voluntary.
The creation of an interstate com
mission Of industry, similar in pow
ers TO the interstate commerce com
mission, is recommended and this new
commission Is to bring about full pub
licity of all corporations chartered
by It and TO publish the fact when
prices are unreasonable and to recon-
mend reasonable prices. 1nterlockine
directorates and holding companies
such as the United States Steel corpo
ration-are to be forbidden except
when permitted by the interstate com
merce Of industry.
To Decree Maximum Prices.
If federal corporation does not prove
to be the real remedy for industrial
Ills and the trust evil, the minority
recommends that the commission OF
industry be clothed with a guarded
power to decree maximum prices
when necessary.
The minority report comedies with
the majority report in that 1t recon.
mends that industrial corporations
should not own common carriers. The
Republican members are also agreed
with the Democrats that corporations
charged with violations Of the Sher.
man law should bear the burden Of
proof" when charged with unreason.
able restraint of trade. The minority
also agree with the majority that In
diyiduals and states should have the
right to intervene In antitrust suits.