Jasper County Democrat, Volume 15, Number 31, Rensselaer, Jasper County, 20 July 1912 — MORGAN RAPPED BY STANLEY REPORT [ARTICLE]

MORGAN RAPPED BY STANLEY REPORT

Roosevelt and Perkins Also Severely Criticized. ASK LAWS TO CURB TRUSTS Republican Members of Investigating Committee Find That U. S. Steel Corporation Has No Monopoly in This Country.

Washington, July 16. —Majority report of the Stanley committee which has been investigating the steel industry, will be made public Ln a few lays and will contain recommenda:ions for laws to curb the giant trusts if the Country. Chairman Stanley and his colleagues are holding daily conferences on the report and con:emplated. legislation.

Representative Young, ranking Republican member Of the committee, has prepared a minority report which he has submitted to the other Republican members. It in large measure, is a defense of the steel trust. It holds that the steel trust has nO monopoly of the steel business of the country or of the iron ore. " Recommend New Laws. Legislation recommended in the Stanley report will cover the following: The prohibition of ownership by one corporation in another corporation. Prohibition of holding corporations ’or Industrial concerns. Requiring industrial concerns to reinquish control of common carriers, ioth railroad and steamship lines, and •estricting them strictly to the operation of plant facility roads. Prohibiting monopolistic control hrough leases or ownership of ore Jodies or other raw material. Declaring illegal all friendly rate ind price agreements and meetings such as the Gary dinners. Colonel Roosevelt, J. Pierpont Morgan and George W. Perkins are criticized severely in the report for their connection with the purchase of the properties of the Tennessee Coal and Iron company by the steel trust, which purchase is condemned as illeg—l under the Sherman anti-trust law.

Morgan Severely Criticized. A separate chapter is devoted to the activities of Mr. Morgan in the. steel business before the steel trust was formed, and with reference to the organization of the steel trust. It tells how Mr. Morgan first got together a number of steel tube mills which an expert valued at $17,00b,000. Some of them were in bad financial shape, and a few showed large net earnings. Later when threatened with competition by John D. Rockefeller, these plants were thrown into the steel trust at a valuation of about $80,000,000. Following this criticism of the gathering in by Mr. Morgan of extensive profits there is a discussion In the report of the enormous sum paid Mr. Morgan for his services in the organization of the steel tryst and for his vtork as fiscal I agent in the conversion of early bonds of the organization. It is held that these excessive profits and charges were carried into the Steel corporation and were responsible'ln part for its excessive overcapitalization. There is caustic comment in the report on the fact that Mr. Morgan fled the country to escape the subpoena when he learned that the committee desired his testimony in connection with Its investigations Into the steel business and the part taken by Morgan in the absorption of the T. C. & T property. Mr. Morgan has not returned.

Roosevelt Is Arraigned. Colonel Roosevelt is arraigned for alleged violation of the law when he, as president, sanctioned the Steel Trust-Tennessee company transaction to oblige Morgan and Judge E. H. Gary. Mr. Perkins’ activities in political campaigns and his connections with political contributions is discussed. Regret Is expressed that a majority of lhe committee decided not to compel Mr. Perkins to disclose all he knew of contributions by the steel trust for political purposes, to whom they were given and for what purpose they were expended.