Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1888-08-08
ABOUT TRUSTS.

ABOUT TRUSTS.
4 Congressional Committee Dives Into.
the Subject Only to Find 1t Too Deep~
for Thorough Investigation in the Time
Alotted-It VIII Sit During the Recess.
-JIow the Combines" Evade tn.
Laws.
WASHINGTON, July 31.-The House Com.
mittee on Manufactures submitted renort
concerning the trusts investigation. which
was ordered printed. The report saws that
the committee has been unable to com
plete thoroughly the Investigation and in
qulry, and recommends the passage of res
olution 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 combinations
Is very large and that your committee in call
Ing Witnesses and taking testimony proceeded
upon the following plan of investigation, t. e.,
to inquire: :f ~. III.
First, with relation to the trusts or combi-
nations In lines of business which are connect,
ca with or use the articles in which there ex-
lists competition In our markets between tho
domestic product and the foreign product, i'm
Ported and dutiable under our tariff laws
second, with relation to such combinations
dealing in articles which are not imported into
tnis country or are not subject to import
duties. E
"Third, with relation to such combinations
dealing in articles which are subject to taxa
ZION 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
fho
committee respectfully submit here
with the testimony taken before it
In relation to these trusts. Sub.
uniting this testimony your committee desire
to call the attention OF the House to the form
OF organization OF these two trusts Both of
them are organized upon substantially the
same plan. From the testimony 1t appears
that there exists a certain class of
corporations organized under the laws
OF the different States and subject to their con-
troll; that these corporations have issued their
stock to various individuals and that these
individual stockholders have surrendered
their stock to the trustees named in
the agreement creating these trusts and ac-
cepted in lieu thereof certificates issued by the
trustees named therein.
The agreements provide that the various
corpor atoms whose stock is surrendered to
the trustees shall preserve their identity and
carry on their business. In the sugar trust
eral corporations shall maintain their
| separate organizations, and each
shall carry on and conduct its
own business. In the Standard Oh Trust agree
ment it is provided that all property, real
and personal, assets and business, shall be
transferred to and vested in the said several
companies The duties Of the trustees are
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-
ceivc and distribute these dividends and
| exercise the only other function given to them
| 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 agreement
| relating to commodities appears from the
testimony as to the arrangement with
| the OlPnoducers' Association in the fall
| OF 1881. The officers of the Producers
Association testified that an agreement
| was then made with the Standard
| Oil Trust by which 100000 barrels
OF oil belonging to the STANDARD OH Trust was
| 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-
eoubtedly understand that their arrange
ment was with the trustees of the
Standard Oil Trust. But the written agreement
produced and now in evidence shows that it
was made with and by the Standard Oil Com
pany OF New York. one of the companies
whose stock IS held by the trustees, and
that the Standard Oil Trust, or the trus-
| tees thereof as such. are not parties to
! 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
| combination to regulate or control
| the production Of any commodity; hence they
assert that the corporations themselves
which control and regulate the price OF COM
modfties and the extent OF production
and have tangible property remain
with their organization intact and dis
tlnct, 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 property
| OF the corporations, entered into the
| 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 1e1a1 title IN 0nv oft tho rronerfv