The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-07-29
Minority Of Committee
Declares Attitude To-
ward Steel Trust.
GREAT COMBINE
is NOT SPARED
Investigators Point Out It's Evils.
Past and Present, but Believe
1t Can Be Brought Within
Law-Interstate Commits
sion Of Industry Recon-
mended.

Washington. July 2s.-A recommen,
dauon favorins the legalzation and
regulation of big Industrial concerns,
Instead OF their dissolution. will be
submitted to the House to-day IN re-
port by three Republican Inemoers OK
the Steel Investigating Committee.
The report is signed by Representative
G .rdner. OF Massachusetts,, Young, OF
michigan. and Danforth. OF New York.
Representative Youn6 Will submit an
additional statement. and Representa-
tive Sterling. OF Illinois, who believes
in dissolvng the big combinations, Will
submit separate report.
The report advocates the creation oe
an interstate commission OF Industry
to be clothed with extensive powers of
regulations, and with power to fix rea-
sonable prices for the output of cor
porations The report would require
that all corporations capitalized at
SSo,000oo0 or more operate under 4
charter to be issued by the United
States before engaging In Interstate
commerce. Smaller corporations might
avail themselves OF the Federal char
ter a their own option
Approves BrandeIs Bill.
All corporations availinS themselves
/ - '.'t tN'tO suites S4ldENeE WOULD no
recapitalized at their Tctual value.
The report commends the wo:6 OF tile
Bureau Of Corporations II also APP
proves the so-called R-andols bill.
! which would transfer the burden OF
proof to defendant corporations TO
show that they are In reasonable
restraint OF trade 1t approves the
measures calculated to prevent inter-
locking directorates. and OF the Dem
ocratic members Legislative program
the Republicans say:
The principles contained in the bills
drafted by the majority are distinctly
worthy of commentator. and we give
them our approval But II the policy
OF dissolution favored by the majority
/ is 10 be pursued much additional leg
islation IS required before proper dis
solution can be obtained. This legis-
latlon the majority has scarcely out
lined
The Republican members make it
plain that the report is not an express
sion OF Republican policy. or dictated
by the Republican administration. In
s!stins that the committee members
stand on their own bottom in enunct-
ating their views
steel Trust Not Spared
The report does not spare the steel
trust or its organizers. j. p. Morgan
g Co are credited with a profit OF S6..-
100000 for underwriting the organisa-
ton OF the United States Steel Cor
poration. Labor conditions in mo
steel mills are declared to be bad. and
/ a suggestion is made to the corpora
ton 10 improve them by working mil,
hands in eight instead OF twelve-hour
shifts. The report thus Summarizes
! its findings:
The corporations was Capitalized at
Sl'ioo' 100000. OF which nearly one
half was water
Inc average annual earnings OF the
| cooperation have been from ii to II
per cent. on the actual value Of ,,s
4ssets.
oTer one-hali the crude and finished
steel business OF the United states.
The average wholesale price of
steel production ias fallen OF since
| The corporation was organized.
The corporation and all the lnde
pendents have an understanding as TO
prices.
The system OF intcrlockins direc-
toFates has insidious consequences nnd
/ facilitates inside engagement and the
shifting Of competition.
/ The situation as to iron-ore SUNNY
| is grave and may become menacing
Labor conditions in certain dsnart-
rnents of the steel industry are bad
i Many recommendations are submit
Ted although no bills have been pre-
pafoG The working out of tho plan
contemplated Is left 10 the future. Tne
minority epitomizes Its -ecommenda-
tions a 5 follows
All corporations exceeding $4,000
900 IN capital cation or valuation nus,
| become United states corporatlons "a
! io'e entering interstate commerce. FOR
smaller corporations tinted states
charters are voluntary.
/ NJ In'ted States corporations must
! ne recapitalized at their actual value.
! Recommends New Commission,
- % interstate commission OF INDUS
/ try' like the Interstate Commerce Com
mission TO be established Publicity
! to be provided for
When the price fixed by a United
states corporation has been found 10
| oe unreasonable the Interstate com
! mission of industry must publicly de-
/ clare that fact and recommend a
reasonable price
! interlock lns diroetorates and hold
/ Ing companies forbidden except when
permitted by Interstate commission OF
Industry.
IF FOREGOING accommodations shall
prove nsuraciont 10 meet the trust
problem the Interstate commission OF
| industry ought % he given carefully
guarded power 90 decree maximum
prices when necessary
Industrial corporations not to own
'Unreasonab.e recraint OF trade
defined END burden of proof OF reason
ahicness' transferred 10. tho defend
ant
-lodylduais aad states to have tho
| (Ccnt!nucd on sixth PagAl