Evening journal., 1912-08-02
PROBERS
SPLIT ON
STEEL QUIZ
One Report Condemns Trust
Other Says mo
Monopoly
GARY DINNERS" SCORED
IN THE MAIN REPORT

20 WASHINGTON. August Fifteen
months investigation of the steel
Trust by the special committee of
the House, were summarized in re-
ports submitted TO that body today
one set condemning the United
States Steel Corporation as gigantic
monopoly in restraint of trade tho
other, although accusing it of sharp
practices holding that it is not q mo-
nopoly All the reports submit vol
luminous suggestions for amendment
and rehabilitation of the antitrust
laws, based on evidence developed
during the hearings.
The reports all refrain directly
from expressing the opinion that the
United States Steel Corporation has
violated the Sherman law. An agree
ment TO omit reference to this phase
bf their Investigation was reached
because OF the pending tendency of
the Government suit to dissolve the
corporation. The majority report,
however, bristles with denunciation
Of the combines methods of "stfling
competition" of "eXerting monopoly,
and OF controlling prices through
ownership of railroads and practical
monopoly Of all the ore fields now
avilable.
The so-called Gary Dinnors"-at
which the heads of all the steel cor
poratons' subsidiaries met with the
chairman OF the board OF directors
Judge E. II. Gary-are bitterly scor-
ed in the main report
''We think the conclusion is ire
sistible. the report says. that the
Gary dinners we're instituted as a
means OF conveying to the entire steel
and iron industry information as to
the attitude Of the United States Steel
Corporation upon the question OF
output and prices. and OF impressins
upon all engaged in the industry that
il was the part Of wisdom and pru.
dence TO govern themselves accord.
ingiy.
we further believe that by this
means prices We're maintained, output
restricted territory divided. compe-
tition stifled and trade restrlned
just as certainly just as effectively
and just as unlawfully as had beer
done under the discarded pooling ar
rangements OF former years.
Three bills, outlining trust curbs
were presented with the report
Ono provides for amendment of IN,
Sherman law to place the burden o.
proof upon the defendant corpora
ti0ns cherged with restraint of trade
Control OF 30 per cent of any bust
nees is made prima facio evidence o
guilt Another provision gives eacl
state and any injured individuals th'
right to bring injunction suits
aginst a trust
A second bill is designed to proven
"interlocking direcsorates" among
railroad and Industrial corporations
II is proposed TO prohibit any Office
or employee OF an industrial corpora
tion in the coal industry or manufac
turer of structural steel and rollin,
stock. from acting in similar ca
pacity for a railroad
Another bill seeks divorce of indus
trial and common carriers by prohib
iting mining or manufacturing com
panies from owning stock IN any car
rier.
The committee also recommend
that the Bureau of Corporations re
port to Congress in addition TO tn
President, providing publicity of cor
porate combinations
Chairman Stanley, Of Kentucky
Rep. Bartlett. of Georgia. Rep. Nc
Gillicuddy, of Maine, and Rep. Beall
of Texas. all Democrats-concur Il
all these recommendations. ReT
Littleton. Dem, Of New York, dis
sents only from the bill changing tb
burden Of proof.
That J. p. Morgan & Co. receives
fee Of s62, 100000 for underwriting
the steel syndicate is asserted
The steel Corporations capitali
zation is S1.745,724,2s4.49" the repor
declares, but this sum- huge. as Il is
In no degree determines its actua
power"
Continuing the report cites wher
the vast holdings of directors Of tn
trust" IN other corporations total
up into. staggering billions.
The Morgan-Cary- Perkins plan 70
federal incorporation and price fix
ing. the Democrats declare is semi
socsalistic." and the present situa
tion is best romedied by publisit!
and strict enforcement of laws.
Had the character of the Stee
COruoration been known at the tim
of the absorption of the Tennessee
Coal and Iron Co., il is highly i'm
probable that the chief executiv
would in twenty minutes hav
given his consent to a merger fraugh