The Washington times., 1912-08-02
Continued from First Page)


the corporation has "stified competi-
tion," exerted monopoly" and con-
trolled prices because of the advantages
possessed by the Steel trust through its
all of. the ore deposits in the country.
In concluding n chapter. devoted to
the famous Gary dinners" the report
says in this connection:
Accepting this Gary dinner of jan
uary. 1911. as fairly typical Of the rest
and the things said and done there as
fairly representative of the things said
and done at others. we think the con-
clusion Is Irresistible that the Gary din
veying to the entire steel and iron In
dustry information as to what the at
titude of the United States Seel Cor
On was upon the question of out
put and prices, and or impressing upon
all engaged in the industry that it was
the part OF wisdom and prudence to gov
ern themselves accordingly.
Territory Divided.
1--WE further believe that by this means
prices were maintained, output restrict
ed, territory divided, competition stifed
and trade restrained, just as certainly,
just as effectively. and just as unlaw-
fully as had been done under the dis
carded pooling agreements of former
years"
The drastic remedial legislation pro-
posed, which would apply to all COR
porations engaged in Interstate COM
merce, is embraced In three bills
The first bill Is to amend the Sher-
man law by more clearly defining what
Is meant by restraint Of trade. The bill
would place the burden Of proof on the
defendant corporation-and not the
Government-when corporation is
charged with unreasonable restraint of
trade.
rrha -arart r..s.-.r,.,a. A.. A. 49,,
missioner of corporations shall be re-
quired to report to Congress as well as
to the President. During the steel hear
ings Commissioner Herbert knox Smith
to mss gys a se tS the
his possession regarding the Steel trust.
Explanatory OF the proposed amend.
ment to the Sherman law, giving In
jured individuals redress against illegal
combinations the majority report says:
THE Attorney General and his oubord-
mates should net be permitted to ex.
erctse an absolute discretion as to the
institution Of proceedings under the
combinations in restraint OF trade. The
parties injuriously affected by such
combinations should have access to the
courts and the benefit of adequate and
sufficient remedies for WRONGS !nfiicte !
ty such combinations"
Criticises 1907 Acts.
The report is highly critical Of the
absorption of the Tennessee Coal and
Iron Company during the 1907 panic by
the Morgan syndicate. The real pur-
pose of the absorption, says the report,
was to enable the Steel trust to gain a
foothold in the Birmingham ore district.
after 1t had obtained possession of IS or
20 per cont of the ores In the Lake Su-
perior region, or the Mesabi and Yer
million ranges.
Referring to the hurried conference
between President Roosevelt and
special troin to Washington for that
conference. the report says:
"The corporation had no holdings
in the entire Southern region. 1t was
needed and was after. and yet. in their
conference with Esthe President IN 9
real transaction was never mentioned
and after his interview with Messrs.
onei Rooseyelt's statement before the
committee. he was still under the i'm
preston that the Steel corporation
had bought some plants in the Bir-
"It is surprising the Steel corpora
tion's rapid and extended control over
natural resources had up to this time
entirely escaped the Presidents at
ca suaI. would have revealed it."
odkCaSu
Referring to the oft-told story of
how the Morgan syndicate covered the
loans on T. C. & I. stock during the
panic, the committee says. with evil
dent sarcasm:
How a panic which had persistent
ly resisted the combined efforts of the
Federal Government and John d.
and remained in unabated fury after
Morgan and Rockefeller had turned
loose $60,000.000 and the Federal
Treasury s25, 100000, should suddenly
Grant B. schisy's loans has not been
explained either by Mr.. Roosevelt or
| any other witness. .-. 80,
Yet It is urgently maintained that the
panic continued prior to this magical
SCOOP Of securities. and that the instant
! the Steel Corporation acquired the Ten
| nessee Coal and Iron Company's stock
II. subsided Instantly and permanently"
formation by Morgan Of the National
Tube Company and the consequent con-
troll of 80 per cent of the tubing busi
ness; to the mannerfn which Carnegie
forced the Morgan syndicate to pay an
excess price in order to get Carnegie
out Of the way as a competitor, and to
! the gradual upbuilding of the Steel Cor
poration by the absorption Of competi-
tors here and there\until today the Uni:
ted States Steel Corporation is declared
absolutely dominant In the ore fields
and in the production Of the finished
| product.
The bill provides further that any in
| terstate corporation controlling 30 pei
| cent of the output or sale Of any COM
modify handled in Interstate commerce
| is guilty, on prima facie evidence, OF
unreasonable restraint.
! Mr., Littleton's dissent is predicated
| particularly on these two, sections o1
| the proposed antitrust bill.
7 Another radical proposition contained
| in the bill Is that granting to the In
jured individual the right to go into
court and sue for injunction or damages
any corporation alleged to be using op
| pressive methods in competition witt
such Individual Under the existing Law
only the Department Of Justice may pro
| ceed against q corporation In behalf o
| the injured Individual or public.
| The sovereign States are also giver
| power to intervene In suits brought
against corporations by the Department
1 of Justice. ....
| A second bill proposed by the majority
| steel investigators Is designed to enc
| the interlocking system OF directorate.
among industrial corporations and
among railroads and industrial corpora
| tions. The report asserts that:
| lone or more of the directors of the
Steel Corporation are also directors ir
| terminal, steamship, express. and tele
graph companies having a total capital
ization of 81 ,2n. It's, 800: In Industrial cor
| v<lt taIi1 tnx