The Calumet news., 1912-07-29
RECOMMENDS REGULATION OF
BIG INDUSTRIAL CONCERNS
INSTEAD OF DISSOLUTION
Minority Report on Steel Trust Investigation by Republican Members
OF Committee Advocates Creation Of an Interstate
Commission of Industry to Fix Prices

Washington, July ga recommen-
dation favoring the legalization anC
regulation of big industrial concerns
Instead of their dissolution is To be
submitted to the House today in a
report by three republican members
OF the Steel investigating committee
The report was signed by Representa-
uves Gardner of Massachusetts
Young submitted an additional state
ment, and Representative Sterling. OF
Illinois. who believes in dissolving The
big combinations will submit a sepa
rate report.
The report advocates the creation
of an Interstate Commission of Indus
try To be clothed with extensive pow
ers of regulation. and with power L.
fix reasonable prices for the output
of corporations. The report would
require that all corporations capital
lied at $50, 900. 900 or more operate un-
ger charter to be issued by the Unit
ed States. before engaging I'm Inter-
state Commerce. Smaller corpora -
tions might avail themselves OF the
Federal charter at their own option.
Brandeis Bill Approved.
All corporations availing themselves
of the United States charter would be
recapitalized at their actual value The
report commends the work of the
Bureau of Corporations. 1t also ap-
proof To defendant corporations 10
which would transfer the burden of
pr oof To defendant corporations to
show that they are i'm reasonable" re-
straint of trade. 1t approves the
measures calculated To prevent inter
locking directorates and of the Demo-
cratic members legislative program
the Republicans say:
The principles contained i'm the
bills drafted by the majority are dis
tinctly worthy of commentator. and
we give them our approval. But the
policy of dissolution favored by the
majority are distinctly worthy of
commenda tion. and we give them our
approval. But If the policy of dis
solution favored by the majority is to
be pursued, much additional legisla-
tion is required before proper disso-
luton can be obtained. This legisla
tion The majority has scarcely out
lined"
Steel Trust Not Spared.
The republican members make IL
plain that the report is not an ex-
preston of Republican policy or dI-
tated by then Republican administra-
tion. insisting that the committee
members Atand on their own bottom
i'm enunciating their views.
The report does not spare the Steel
Trust or it's organizers. J. +. Morgan
& Co. are credited with a profit of
ss2. 500. 900 for underwriting the or
ganization of the United States Steei
Corporation. Labor conditions I'm the
steel mills are declared To be bad and
a suggestion made To the corporation
TO improve them by working mill
hands in eight instead Of twelve hour
shifts.
Summary OF the Findings.
The report thus summarizes It's find
ings:
"The corporation was capitalized at
81, 400. 100000. 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 value of Its
assets.
"The corporation controls little
over one half the crude and finished
steel business of the United states.
The average wholesale price OF
steel products has fallen off since the
was organized.
"The corporation and all the inde-
pendents have an understanding as to
prices.
THE system of interlocking direc-
torates has insidious consequences and
facilitates inside management and