Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-08-26
Third Section of Report of U. S. Commission on
Industrial Relations Tells of Methods of Larg
er Corporations, and Espionage Over En-
plOyes

For example. in the United States Steel
Corporation, which had in 1911 approx
mately 100000 shareholders. LIS per cent:
the stock. while the final control rested
with a single private banking house.
Similarly in the American Tobacco Co.,
before the dissolution, 10 stockholders
owned 60 per cent. of the stock.
6. Almost without exception the en-
ployees Of the large corporations are un-
organized, as result of the active and
aggressive "non-union" policy of the
corporation arrangements.
Furthermore. the labor policy of the
large corporations almost inevitably de-
termines the labor policy of the entire
Extent Of Control.
I. "A careful and conservative study
shows that the corporations controlled
by six financial groups and affiliated in
terests employ 2,651, 6S4 wage earners and
have a total capitalization of s19,s75. 2oo.-
600. These six financial groups control
% per cent. of the total number of wage
earners engaged in the industries COW
cred by the report Of our investigation.
The Morgan-First National Bank group
alone controls corporations employing
,499 wage earners. That this control
is effective is shown by the following
telegram from ]. P. Morgan to E. H.
Gary:
E. H. Gary. New York
Have received your cable of yester-
day. My own views are in accord
ance with those of the financial COM
question of wages has been settled
by the coal and railroads, which still
in allegiance but settlement seems
imminent. Whole question wages
all interests If possible. Going Paris
Wednesday. Will see there H. c. F.,
P. A. B. w, and will cable you re-
suit of interview. If possible and
meets your approval, think better
wait until after interview. Perfectly
delightful here. Weather superb.
s. The lives of millions of wage earn
ers are. therefore, subject to the dicta-
ton of relatively small number of
men.
8. These industrial dictators for the
most part are totally ignorant of every
aspect OF the industries which they con-
unconcerned with regard to the working
and living conditions of the employees in
those industries. Even if they were
deeply concerned, the position of the en-
jects of benevolent industrial despots.
10. Except. perhaps, for improvements
In safety and sanitation, the labor condi-
tons of these orporation-controlled in
dustrles are subject to grave criticism.
and are menace to the welfare of the
Nation.
II. In order to prevent the organization
Of employees for the improvement of
working conditions. elaborate systems of
espionage are maintained by the large
corporations which refuse to deal with
labor unions, and employees suspected of
union affllation are discharged.
u The domination by the men in
part of American industry rests is not
limited to their employees, but is being
rapidly extended to control the education
and social service" of the Nation.
largely through the creation of enormous
privately managed funds for indefinite
purposes, hereinafter designated "foun-
dations.' by the endowment of colleges
and universities, by the creation of funds
for the pensioning of teachers. by CON
tributions to private charities, as we'll as
through controlling or influencing the
public press.
IA. Two groups of the foundations"
namely. the Rockefeller and Carnegie
Foundations. together have funds
amounting to at least $3.50. 600, OoO yielding
an annual revenue of at least 49, 500 600,
which is at least twice as great as the
ment for similar purposes, namely, edu-
cation and social service.
Is. The funds of these foundations are
exempt from taxation, yet during the
lives OF the founders are subject to their
dictation for any purpose other than
commercial profit. In the case of the
Rockefeller group of foundations, the
absolute control Of the funds and of the
perpetuity rests with Mr.. Rockefeller,
his son. and whomsoever they may ap-
point as their successors"
Tho Rockefeller Foundation.
16. 1.-The control of these funds has
been widely published as being in the
hands of eminent educators and public
spirited citizens. In the case of the
Rockefeller foundations. however. not
only is the control in the hands of Mr..
John D. Rockefeller. Jr., and two Of the
members of the personal staff of Mr..
John D. Rockefeller, ST.. who constitute
the finance committee, but the majority
of the trustees of the funds are saiaried
employees of Mr.. Rockefeller or the
foundations, who are subject to personal
dctation and may be removed at any
II. The funds of these foundations are
largely invested in securities Of corpora
tons dominant In American industry,
whose position has been analyzed under
the early headings of this section. The
policies of these foundations must in
conform to the policies of such corpora
tons.
IS. The funds of the foundations repre-
sent largely the results either of the ex-
the payment of low wages or of the ex-
ploitation of the American public through
the exaction of high prices. The funds.
therefore. by every right, belong to the
American people.
10. The powers of these foundations
are practically unlimited. except that
they may not directly engage in business
for profit. In the words Of President
Schurman of Cornell. himself a trustee
of the Carnegie Foundation:
70: The charters of these foundations,
with their almost unlimited powers.
were granted under conditions Of such
laxity that 1t has been testified by an
eminent legal authority who made an ex-
tensive investigation that those granted
by New York State are legally defec-
tive and unconstitutional. Furthermore,
evidence developed by the hearings of
ing the number Of it's trustees without
complying with the requirements Of ,.4e
law governing corporations, the Rookie
teller Foundation has already been guilty
of breach Of the law.
a. These foundations are subject to no
curbed only by the difficult process Of
amending or revoking their charters.
Past experience, as, for example. in the
case OF the insurance companies, indi-
Gates that the public can be aroused only
when the abuses have become so great
as to constitute a scandal.
to the field of Industrial relations.
through the creation Of a special divi-
sion by the Rockefeller Foundation, con-
stitutes menace to the national well
rare to which the attention not only Of
Congress but Of the entire country
should be directed. Backed by the $780,
movement has the power to influence the
entire country in the determination of
its most vital policy"
Control Of colIeoea-