Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1912-08-10

Great Corporations Cannot Be Form
ed-Why Morgan and Company RI
nanced the Deal.
Washington, ID. c., Aug. To-day
the Stanley committee, appointed to
investigate the Steel Trust made its
report. Dissenting reports we're also
filed In part the report says:
That the United States Steel Cor
poration was originated by J. p. Nor
gan and Co, for the purpose OF mo-
nopolizing the steel industry of the
country is the basis of the report of
FIVE Democratic members Of the Stan
ley Steel Trust investigating commit
tee. which was presented to the House
of Representatives today.
Drastic legislation providing for an
amendment to the Sherman Anti
trust Law, bill to prohibit persons
engaged In the manufacture or sale OF
railroad supplies from becoming direc-
tors in railroads engaged in interstate
commerce and bill to regulate the
ownership of common carriers engag-
ed in interstate and foreign commerce,
are recommended by the committee.
The provisions of the amendment to
! the Sherman antitrust law were made
public a few days ago. The most inn
portant of these limit the output of
any corporation to 80 per cent of the
total quantity of any article sold in
the United States; permit an individ-
ual to bring suit in equity against a
corporation under the Sherman anti
trust law; and in a suit for dissolution
under this law provides that the de-
PENDANT must furnish the proof as
whether the restraint is reasonable or
not
The recommendation of Judge Gary
and Andrew Carnegie before the com
mittee, providing for the control of
corporations by the Federal Govern
ment is not approval. Such a con
troll says the committee semi-social-
istic in its nature. is beyond the power
vested by the Constitution in the Fed
eral Congress.
Representative Littleton. of New
York, member of the committee,
concurs with his colleagues in the re-
/ port on the investigation and two of
/ the bills recommended but submits a
dissenting opinion on the proposed
amendment to the Sherman Antitrust
Law.
A dissenting report on the investi-
cation was submitted by Representa-
/ tive o. Fl. Young, of Michigan, one of
the Republican MEMBERS of the com
mittee.
Important findings revealed in the
majority report says:
That the United States Steel Cor
poration organized for the purpose of
monopolizing the steel products of the
country
That the organization of the various
subsidiary corporations revealed an ex
tensive over capitalization. In this
connection the report makes the terse
comment that "in some Instances the
stocks were not watered in the ordi-
nary acceptances of that term; they
We're literally deluged,"
That the purchase Of the Carnegie
Co. by the u. S. Steel Corporation
was not made for the purpose of ac-
quiring a Ilill, but for the elimination
of Andrew Carnegie their most dan
gerous competitor.
That the financiers who promoted
the Z. S. Steel Corporation in less
than 40 days created new values on
paper of over $500,000,00O.
That this over capitalization worked
an untold injury not only upon the
stockholders of the Steel Corporation
but also upon the industry itself
That the purchase of the Mesabi
Ore fields by the Steel Corporation
and the agreement between the Hill
interests and the Steel Corporation
were made for the express purpose OF
monopolizing the ore reserves in the
Northwest and of the transportation
lines by which iron ores are carried
to Lake Superior
That the Gary dinners were devised
" NllNullNtul lut ODtiiiidH dANt-Li Hdt
law by avoiding direct and positive
agreements in restraint of trade.
That the United States Steel Cor.
poration is not entitled to any pro.
tective tariff on the ground that it fos-
American labor, as it does neither.
That the United States Steel Cor
poration and the forces behind it
made many contributions TO the Re
publican national campaign fund
That the interiocking of directorate
es had pernicious effect sometimes
upon the Steel Corporation itself but
more often upon the public general
ly.
i That reyolupg conditions exist in
the home lives Of the laborers employ.
ed by the steel corporation as a result
Of the long hours and comparatively
low wages.
That the company supply store sys-
tenn which the Steel Corporation has