The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-07-29
MINORITY IS OUT
WITH ITS REPORT
ON STEEL TRUST
Republican Members of the
Investigating Committee
Give Conclusions
7. P. MORGAN COMES
IN FOR A SCORING
Federal Incorporation and
Interstate Commission on
Industries Among Re-
commentators

WASHINxIoN, July 80 az DlSS'-s65
eraI incorporation Of all concerns en-
sagea IN Interstate commerce whose
"a Capitalization or value exceeds $ov,-
600 900 Is the keynote recommenuA
tton of the minority members OF tn
stanley steel Investigating committee.
The report OF the Republican mem
bers of the investigating commie1SS
was made public tonight
The full report Is signed only ~
Representatives Gardner ana
forth. The remaining Republican
members. Representatives Sternn3
and Young. of Michigan, file now
dual dissents on the exact character
Of remedial legislation needed.
Messrs. sterling and Young a2Tes
With their Republican colleagues thai
federal incorporation is a remedy TOT
present industrial evils. but they oe-
cline 10 go so far as to recommends
the federal regulation OF prices. when
Gardner and paHfeFth advocate IN fne
event the situation cannot otnerWso
ne met.
Agree on stlient Facts
The four Republican members agree
on to following salient findings OF
fact as developed BY the long invesu-
cation of the United States Steel cor
poration;
That J. ?. Morgan and company
received $50, 100000 for organizing tns
corporation, and that OF the capitals
zation o. 400, 900, 900 nearly ono
half war water.
THAT the average annual earnings
Of the steel corporation have been
from II TO IL per cent Of Its assets
and that the corporation controls
more than one-haf OF the crude ana
finished steel business Of the country.
Of the steel products have been low
arad since the corporation was form
That the average wholesale price
cd bur that the corporation ana all
independents have an understanding a.
to prices .s,s,n ~ interrockinx
dtrectorates has insidious consequent
ces and tends to Inside management
and the sitting of competition.
'~That the situation as to the iron
or, supply Is grave and may become
r,,.,nucing. and that labor conditions
,r certain departments OF the steel
Industry are bad"
Federal Incorporation.
AS q result OF this situation in the
steel industry, the minority members
recommend the federal Incorporation
Of al! concerns with capital exceed
ing s5o.000000 which desire to enter
interstate commerce These corpora
lions 80 chartered are to be known a.
United States corporations For cor
porstions of small capital it is re-
cOiII1HSloVd tAtha SAAsAi 40 HhNA' ~ 49,
unthry.
The creation Of an interstate COM
mission of industry. similar in powers
to the interstate commerce commits
sion is recommended, and this new
commission Is to bring about full pub
Iiclty o" all corporations chartered by
1t, The new commission furthermore
is 10 be required. II the minority plan
should prevail. 10 publish the fact
when prices are unreasonable and to
recommend reasonable prices. Inter-
Toe Itng directorates and holding com.
pauiee--such as the United States
Steel corporation--are TO be forbfd-
den except when permitted by the
interstate commission Of industry.
r. federal incorporation does not
prove. y. be thu real remedy for indus
trial Its, and the trust evil. the MINI
ority recommends that the commits
sion u industry be clothed with
guarded power to decree maximum
prless when necessary.
should Not Own Roads
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 SHEER
man law should bear "the burden Of
proof when charged with unreasonA-
BIZ restraint OF trade. The minority
also agrees with the majority that
and States should have the
right to intervene in antitrust suits. Il
In criticism OF the labor conditions
existing in the steel mills the minor
ity recommends that in blast furnaces
and rolling mills three shifts OF men
eight hours a day should take
the place Of two shifts working Il
twelve hours each.
We do not hesitate to say that
this transaction of j. p Morgan ana
company must stand condemned be~
fore the more enlightened busineom
ethics Of later years" says the min
Gritty in referring TO the $s2.600.ooo
fees exacted by the Morgan syndi-
cate In the forming .bsohf. Bshrdlst
cate in the formation OF the steel
trust.
Omitting the Hill ore land leases
the minority finds that the steel c0x~
poration still controls so to S. peN#
cent OF the lake superior high grafAog
ores and IS to so per cent OF tho 098mS4a
In the Birmingham district.
Passes r. G. and I. Deal.
On the ground that II cannot 1nas
done without injecting a political 41
pute. the minority does not d11c3 S3
Inc absorption Of the Tennessee C
and Iron company by the Steel 04rs
poration, which was permitted 18
President Roosevelt Mr. Young Y l
,usses this In his report. whicn ~
he published simultaneously with
majority report The minority ~
Il Ia definitely of the opinion that
true remedy for the trust proe3
Les In federal control and IN q
pulsony federal incorporates,
the minority admits tho. AIne4a
people may not yet be ready for
and suggests one m0To
~ the sherman antitrust law. n1S
It Is radically strengthened.
The Republican members a&r4oE
substance with the bills nmNndtm9
Law as prepared By the D1maG
although the minority expreana&
view that stiii more amendmentn
be reeded.