The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1888-08-03
ABOUT TRUSTS.

JIG SuDJcct Only co EInQ II Zoo Deep
for Thorough Investigation In the Time
Allotted-It WIN Sit During the Recess
How the "Combines" Eyade the
Laws.
WARRINGTON, July 31.-The House Com
mittee on Manufactures submitted repor.
concerning the trusts investigation, which
was ordered printed. The report says that
the committee has been unable to COM
plete thoroughly the investigation and in
quiry, and recommends the passage of res
olutisa authorizing it to continue the
same during the Congressional recess. The
report continues:
" Your committee further report that the
names OF various combinations and trusts have
been from time to time furnished to your COM
mittee; that the number Of such combin atoms
is very large, and that your committee in cali
ing witnesses and taking testimony proceeded
upon the following plan OF investigation, l. e..
to inquire:
First, with relation to the trusts or comb
nations in lines OF business which are connect
ed with or use the articles in which there ex-
lists competition in our markets between the
domestic product and the foreign product, i'm
ported and dutiable under our tariff laws.
Second, with relation to such combinations
dsa.3ls.Ein articles which are not imported into
this country are not subject to import
duties
"Third, with relation to such combinations
dealing in articles which are subject to taxa
ton under the internal revenue laws OF the
United States.
"Your committee has particularly directed its
inquiry into the methods of and the extent OF
the business done or controlled by the Sugar
Trust and the Standard Oil Trust Your
committee respectfully submit here
with the testimony taken before ii
in relation to these trusts. Suh-
hitting this testimony your committee desire
to call the attention OF the House to the form
Of organization of these two trusts. Both O
them are organized upon substantially the
same plan. From the testimony it appear
that there exists certain class OF
corporations organized under the laws
of the different States and subject to their con
troll; that these corporations have issued thei1
stock to various individuals and that these
Individual stockholders have surrendered
their stock to the trustees named in
the agreement creating these trusts and &C
cepted in lieu thereof certificates issued by the
trustees name ed therein.
"The agreements provide that the various
corporations whose stock is surrendered to
the trustees shall preserve their identity and
carry on their business. In the sugar trus,
agreement the provision is that the sew
eral corporations shall maintain theil
separate organizations, and eacf
shall carry on and conduct its
own business. In the Standard Oil Trust agree
ment it is provided that all property, rea
and personal, assets and business, shall be
transferred to and vested in the said several
companies. The duties OF the trustees arc
restricted to the receipt of the dividends
declared by the various corporations and the
distribution of the aggregate of them to the
holders of the trusts certificates pro rata and
to holding and voting upon the stock of the
corporation. The trustees in both cases upon
the stand as witnesses, specifically de-
MED that the trustees, as such, ever
do any other business than to re-
celve and distribute these dividends and
exercise the only other function given to then
by the trust agreements, that is, to hold
the stock to the various corporations
and exercise the right of stockholders
in such corporation. The care with which
the trustees avoid making any agreemen,
relating to commodities appears from the
testimony as to the arrangement witt
the OlProducers' Association in the fal
of 1881. The officers OF the Producers
was then made with the STANDARD
Oh Trust by which 100000 barrels
OF Oil belonging to the Standard OIL Trust wa.
set apart for the benefit of the ASSOCIATION
upon its agreeing to curtall the pro
duction OF crude oil at least 1850 bar
rels per diem. These witnesses un
doubtedly understand that their arrange
ment was with the trustees of the
Standard Oil Trust. But the written agreemen1
produced and now in evidence shows that Il
was made with and by the Standard Oil Com
pany, OF New York, one OF the companies
whose stock Is held by the trustees ant
that the Standard Oil Trust, or the trus
tees thereof as such, are not parties tt
it, nor is either of them responsible for the
carrying out of that agreement. This form Of
combination was obviously devised for the pur
pose of relieving the trusts and trustees from
the charge of any breach of the conspiracy
laws OF the various States, or of being
a combination to regulate or contro
the production of any commodity; hence they
assert that the corporations themselves
which control and regulate the price OF com
modities and the extent of production
and have tangible property remain
with their organization intact and dis
tinct and not in combination with
each other; that the stockholders who owned
only the stock, and by well-settled legal rules
had no legal title in the propert,
of the corporations, entered into tht
agreements and sold their stock in The
corporations, and accepted in payment
trust certificates, and that the trustees re
celve and hold only the stock Of corporations
ana have no legal title to any OF the property
of the corporations and neither buy or sell any
thing nor combine with any one to fix prices OF
regulate production of any commodity"
The committee was given permission tt
sit during the recess.