United States Steel: A Corporation with a SoulCotter, Arundel
History
United States Steel: A Corporation with a Soul
Cotter, Arundel
United States Steel Corporation
Charles L. Bartlett, of Georgia, Democrat; Jack Beall, of
Texas, Democrat; Martin W. Littleton, of New York, Democrat;
D. J. McGillicuddy, of Maine, Democrat; Augustus P. Gardner, of
Massachusetts, Republican; Henry G. Danforth, of New York, Republican;
H. O. Young, of Michigan, Republican; John A. Sterling, of Illinois,
Republican.
The committee shortly began its work and in the course of its
investigation summoned as witnesses the heads of the Corporation and of
various independent steel companies, experts in economics, consumers,
and a host of other witnesses. The greatest publicity was given to
these hearings, but the Corporation, although practically put on trial,
could not avail itself of the usual recourse of a defendant, could not
call witnesses on its own behalf.
On August 2, 1912, the Stanley Committee presented its report, or
rather reports, for there were several. The majority report, signed
by Messrs. Stanley, Bartlett, Beall, and McGillicuddy, was a sweeping
condemnation of the Corporation, its organization and its methods. This
was a matter of little surprise as the entire method of conducting the
investigation was sufficient to convince the unprejudiced mind that the
effort of the investigators was not so much to find out whether the
Corporation had been influential for good or evil but to prove that it
was actually a violator of the law.
Practically everything the Corporation ever did was condemned in
this report. Among the items that came for particular criticism were
over-capitalization, the bond conversion plan, the Hill ore lease, the
Union-Sharon purchase, the Gary dinners, the Tennessee purchase, the
Corporation’s attitude toward labor unions and toward labor generally,
and interlocking directorates.
According to the report the Corporation played an important and
dangerous part in influencing legislation, particularly in helping to
disseminate literature in favor of a high tariff. The letters produced
in support of this charge, however, do not seem to be very convincing
proof, indicating that no means other than perfectly legitimate ones
were used to assist in maintaining the tariff on steel products, the
necessity for which all steel men were agreed on.
In regard to the purchase of the Tennessee Coal, Iron & Railroad Co.,
the Stanley Committee asserted unequivocally that George W. Perkins,
a Morgan partner and a member of the board of directors of the Steel
Corporation, deliberately attempted to precipitate a run on the Trust
Co. of America with the purpose of forcing the interests in control of
the Tennessee company to sell. The details of the deal and the events
connected with the run on the trust company have been discussed in the
chapter devoted to the Tennessee purchase.
Public-domain text, read in full here on John Shaqi.
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