New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-08-03

| Is, 1907. President Roosevelt issued
statement congratulating Secretary Cor
telyou and the business men who headed
off the panic. The committee says OF
this:
Up until the time of this interview the
Steel Corporation owed its success and
! its permanency to the power and skill
Of the tinanciers who had created and
the ironmasters who had directed lts
operations. Since that time its dom
nance has been due in no small measure
TO the sudden, ill-considered and arbl-
trary fiat OF the Chief Executive.
The Presidents refusal to interfere was
an absolute warrant TO proceed. A sug-
gestion from him to the Attorney Gen
eral was equivalent 10 command and
upon a refusal OF the Attorney General
TO act the corporation was immune. This
is admitted by Colonel Roosevelt, and
he unhesitatingly assumes full RESPONSE
bility in the matter.
The report occupies more than 200 pages,
and much of IT is criticism OF the meth
DDS Of the trusts. Andrew Carneges
steel making methods and his desire to
extend his business are held out as the
motives which compelled J. Pierpont Nor
gan and his associates to organize the
Steel Trust.
Mr.. Sterling for Control.
Representative Sterling disagreed with
his colleagues on the committee and sub
mitted TO the House report in which he
says:
heartily favor governmental regula-
ton OF corporations engaged IN interstate
commerce. 4 ne nrsL sep IN this direct on
Is legislation providing for feuerai incor-
porauon Sucn legislation should limit
the capitalization 10 the actual va4ue or
the corpol ate property, and thus elimi-
hate from the commerce OF the country
that abominable notion of values com
monty termed "Watered stock"
Tie extent 10 which fictitious values
have been created by overcapitalization
Of corporate property has shaken pubic
made the public mind distrustful of large
business enterprises.
Such legislation should provide for a
system Of reports to a commission or
other government agency, giving full pub
Nc.ty to the manner and purpose of the
organization, its methods Of doing bust
Ec.s and its profits. 1t should provide
for rigid supervision of all issues OF Sc
curlties' prohibit one corpora ton from
holding stock in another and limit the
extent to which two or more corporations
may have common directorates.
/ do not concur in the Views OF the
minority tnat the true remedy IOr lHuuS-
trial evils does not lie in the dissolution
OF the Industrial trusts. / am of the
opinion that the dissolution of the great
industrial combinations into their Integral
parts would do much TO restore trade 10
a natural and healthy condition and In
spire confidence OF the people In the bust
ness situation and revive commercial
prosperity.
The proposition that the government
shall recognize and permit TO exist trusts,
monopOlies and combinations I'm restraint
of trade, and then regulate them by leSlS-
lative control. IS one calculated 10 sup
press individual enterprise and destroy
competition. It Is conceded that such 4
policy would result necessarily In the fix
ing Of prices of the products Of such com
binatiOns by law. II the government
fixes the price OF the finished product,
must Il not also fix the price of the raw
material and Of the labor that converts
It?
1t is urged that large industrial com
binations can produce more cheaply than
small ones This is n fundamental fallacy,
from which proceeds the paternalistic
doctrine that the government shall recoS-
niZe and permit monopolistic comblna-
lions and fix the price of their product.
The federal government by proper leg
iSlation can resolve great combinations
into their integral parts, and then, by
wise and Just regulation OF corporal e
powers. maintain a natural and healthy
condition OF trade. 1t is plainly It's duty
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