Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1912-07-29
POWER TO FIX
PRICE OF STEEL
IS DEMANDED
Minority PrObers Are
for a Commission
of Industry.
THEY SAY TRUST WAS
NEARLY ONE-HALF WATER
Better Labor Conditions Urged
in Report to the Lower
House Today.

WASHINGTON, July ga minor
ity report, for submission to the House
today, favoring the legalization and
regulation of big Industrial concerns
instead of their dissolution has been
made public. 1t is signed by three
Republican members of the steel in
vestigating committee, Representa-
tives Gardner, of Massachusetts;
Young, of Michigan. and Danforth,
of New York. Representative Young
has an additional statement and Rep
resentative Sterling, of Illinois, who
believes In dissolving the big combi-
nations, will submit a separate re-
port.
The report advocates the creation
of an interstate commission of indus
try, to be clothed with extensive
powers of regulation. and with power
to fix reasonable prices for the output
of corporations. The report would
require that all corporations capital
lied at $50, 000. 900 or more, operate
under a charter to be issued by the
United States before engaging in In
~terstate commerce. Smaller corpora
tons might avail themselves of the
federal charter at their own option.
Commends Corporations Bureau.
All corporations availing them
selves of the United States charter
would be recapitalized at their actual
value. The report commends the
work of the Bureau of Corporations.
1t also approves the so-called Bran
deis bill, which would transfer the
burden of proof to defendant corpor-
atoms to show that they are in "rea-
sonable" restraint of trade 1t APP
proves the measures calculated to
prevent i~nterlocking directorates, and
OF h Democratic members legisla-
tive program the Republicans say:
THE principles contained i n the
bills drafted by the majority are dis
tinctly worthy OF commentator. and
we give them our approval. but If
the policy of dissolution favored by
the majority is to be pursued much
additional legislation is required be-
fore proper dissolution a be OBJ
tanned. This legislation the ma
jority has scarcely outlined"
Findings of Minority,
The report thus summarizes its
findings:
THE corporation was capitalized
at $1,4oo. 0o0, 900, of which nearly one
half was water
THE average annual earnings of
the corporation have been from II to
IL per cent. on the actual valuee of
its assets.
THE corporation controls a little
more than half the crude and finished
steel business of the United States.
1.-The average wholesale price of
steel products has fallen off since the
corporation a organized.
THE corporation and all the indie
pendents have an understanding as
to prices.
THE system of ~interlocking direc-
torates has insidious
and facilitates inside management
and the sitting of competition.
THE situation as to iron-ore supply
is grave and may become menacing. 4
Labor conditions in certain depart
of ths steel industry are bad"
summary of Recommendations.
MANY dft SuU-
mitted. although no bills have been
prepared. The working out of the
plan contemplated is left to the flu
ture. The minority epitomizes it's
recommendations as follows:
"All corporations exceeding $50, 000,-
900 in capitalization or valuation must
become United States corporations be-
fore entering interstate commerce.
For smaller corporations United
States charters are voluntary.
"All United States corporations
must be recapitalized at their actual
value.
IAN Interstate Commission of m
dustry, like the Interstate Commerce
Commission, to be established.
when the price fixed by a United
States corporation has been found to
be unreasonable the Interstate Com
mission of Industry must publicly de-
clare that fact and recommend a
reasonable price.
Would Control Prices.
"Interlocking directorates and hold
ing companies forbidden except when
permitted by Interstate Commission
of Industry.
IF foregoing recommendations
shall prove insufficient to meet the
trust problem the Interstate Com
mission of Industry ought to be given