Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1912-08-02

III IA wv EQE A4.4
Republicans, dissented from the
The report of the majority deals
with the steel trust from its incep-
ton and describes the various steps
by which J.. P. Morgan and his assn
ciates built up the corporation b
addition to recommendations for leg
lsiation suggested as remedial the
democratic members of the commits
tee made general accusations against
the men responsible for the orEani.
cation.
j. p Morgan and his associsfez
are held up as being the beneiciariez
or enormous profits realized from In
over-capitalization of the subsidiary
companies of the Steel Corporas:ou
and later Of the corporation itself.
Roosevelt Indicted.
Former President Roosevelt is il.
dicted for making the control Of IN
steel trust absolute and is CHARGED
with being responsible for the xigan-
tie stature which the trust has az
tanned.
The United States Steel Corporation
is fiayed as an eneIny Of organized
labor. accused of lowering ne
sociological conditions OF its em-'
pleyees and of contributing to Amrri-
can industry workmen and Nork
methods un-Ameriean .ln3 foreign g.
he best interests of labor.
Principal stockholders Of the s{ee1
corporation are accused of exerth<
a pnu-arf,1 onI fnf-~fn.4. -4
The business of the United States b.
means OF control exercised through
i~nterlocking directorates OF railway
and industrial organizations.
The activity of the corporation n
politics is laid bare and It's inf1uenee
described. and the steel trust a.
a tariff beneficiary and its part n
the making of the Payne-AldridiI
tariff act r touched upon ny tbs
Democrats.
Legislation to Cure Evils.
The committee recommends lness-
lation to cure trust evils and to meet
existing conditions. 1t condemns tffs
steel corporation but does not inrade
the jurisdiction of the United States
u in which there is now pending
a government suit for its dissolution.
The governments suit is to discover
IL the United States Steel Corporation
is lin violation of the Sherman antl-
trust law
In summing up its conclusions The
majority report says:e
THE control of corporations BY The
Federal Government, as recommended
by Mr.. Carnegie, Judge Gary and 9TH
ers, is not approved. Whatever may
be the evil results of the elimination
of competition from the steel basi-
ness, it, does not justify such a reia-
edv and could not be cured by il.
Such a control. semi-sociaistic IN its
nature. is beyond the power vested
by the Constitution in the Federal
Congress.
Publicity = Remedy.
The abuses mentioned in this re-
port can in a great measure be reme-
died by giving to the operations OF
the United States Steel Gorporation
and other like corporations the widest
publicity and by the strict enforce
ment of laws specifically inhihiting
the employment of cunning devices
by which an unfair advantage over
competitors is secured.
The bureau of corporations pos
sesses the authority to thoroughly in
vestigate the internal affairs Of in
dustrial concerns doing an Interstate
business. Had the character Of the
steel corporation and the nature and
oxfnnf Af ffC nr.ar,S@-- - -
to the people and TO the President 81
the United States at the time Of the
absorption Of the Tennessee Goal and
Iron Company it is highly improb-
able that the chief executive would
in twenty minutes have given his
consent to a merger fraught with IN
finite injury to the steel industry ana
to the public alike.
"The commissioner Of Corporations
should be required to report to Con-
grcss, as well as to the Ppesidens II
the United States. at such times ana
upon such conditions as it NAV pre-
scribe. and the law creating this
bureau should be SO amended as e
make such report mandatory unoa
the commissioner Of corporations.
Earnings Not Due 20 Eficicne,
'The enormous earnings of tbo
steel corporation are due not to 4
degree Of Indignation Of efficiency NOT
possessed by its competitors. 81 IA
the ownership Of ore reserves out -
all proportion to its output OF eqt1ire.
ments and TO the control and ,pefs1z
ton of common carriers. divisions e