Huntsville gazette., 1888-08-04
TRUSTS.

! noPort OF tne House Committee on Manu-
features on Trusts, More Particularly
the standard Oil and Sugar Trusts The
Peculiar Methods Adopted to Evade
Conflict With the La w and Achieve Their
Ends.
WASHINGTON, July 31.--The House CON-
mlttee on manufactures yesterday submit
tea lne following report concerning the
trusts Investigation, which was ordered
printed:
The committee on manufactures respectfully
report, that acting under the authority and
direction of resolution of this House, passed
on the 25th day of January, 1885, they have pro
ceeded to investigate and inquire into the mat
ters and things referred to in said resolution,
ana having examined witnesses and papers in
relation thereto, they have been unable to COM
plete such inquiry and investigation. and re-
spectfully report the following resolution, with
the recommendation that it do pass
Your committee further report that the
names OF various combinations and trusts have
been, from time to time, furnished to your COM
mlttee, 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, g.,
70 inquire:
First, with relation to trusts and combina-
tions III lines of business which are connected
with use articles in which there exists a
competition in our markets between the do
mestlc Product and the foreign product import
ed and dutiable under our tariff laws.
Second. with relation to such combinations
dealing in articles which are not imported into
this country, or 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 tho
United States.
Your committee has particularly directed
ty,.ttt t,~1z - n,,f
OF the business done or controlled by the
Sugar Trust and the Standard OIL Trust, and
respectfully submit herewith the testimon
taken before it in relation to these two trusts.
In submitting this testimony, your committee
desire to call the attention of the House to the
form OF organizations of these two trusts,
Both of them are organized on substantially
the same plan. From the testimony it ap-
pears that there exists certain number of
corporations organized under the laws Of
the different States and subject to
their control; that these corpora
tions have issued their stock to various ind-
viduals and that these individual stockholders
have surrendered their stock to the trustees
named in the agreement creating these trusts,
and accepted in lieu thereof certificates issued
by the trustees named therein. The agree
ments provide that the various corporations
whose stock Is surrendered to the trustees
shall preserve their identity and carry their
business In the Sugar Trust agreement the
provision is that the several corporations shall
maintain their separate organizations and
each shall carry on and conduct it's own busi
ness. In the Standard Oil Trust agreement 1t
is provided that all property, real
and personal assets and business
shall be transferred to and vested in the said
I-sereral 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 trust certificates pro rata, and
to holding and voting upon the stoc'l Of he cor
poraton. The trustees in both cases, upon the
stand witnesses specifically denied that the
trustees, as such, ever do any other business
than to receive and distribute these dividends,
and exercise the only other function given to
them by the Trust agreements that is to hold
the stock OF the various corporations and exer-
else the right of stockholders in such corpora
tiOn
The care With which the trustees avoid max
ing any agreement relating to commodities, ap-
pears from the testimony as to the arrange
ment with the Oil PRODUCERS Association in
the fall of 1887. the officers OF the Producers
Association testified that an agreement was then
made with the Standard Oil Trust by which s.,
0O,000 barrels of oil belonging to the Standard
Oil Trust was set apart for the benefit OF the
association upon its agreeing to curtall the
production Of erude oil at ledst l1.5 0 barrels
derstand that their arrangement was with the
trustees of the Standard Oil Trust. But the
written agreement produced now ia evidence
shows that 1t was made tn and is signed by
the Standard Oil Company OF New York one Of
the companies whose stock is held by the
trustees, and that the Standard OIL
Trust, or the trustees thereof as
such, are not parties 10 II, nor
is Ell her of them responsible for the carrying
out of that agreement. This form of combina-
ton was obviously devised for the purpose 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 price or production OF
any commodity, hence they assert that the cor
poratlons themselves, which control and regu-
late the price of commodities and the extent of
production, and have tangible property remain
with their organization intact and distinct 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 COR
poratons and received in payment, trust GER
tfficates, and that the trustees receive and hold
only the stock Of corporations and have no
legal title to any OF the property of the c1r-
porations, and neither buy or sell any thing nor
combine with any one to tx prices regulate
production of any commodity.
IOul Coluulltbet nave ucclHcu IL proper 10
call attention to this feature of these combina-
tons, because it is believed that it will be
found that all trade combinations having
similar aims either have adopted this method
or speedily win do So and also
because the legislation which has
been proposed to this House and
referred TO your committee has been directed
against combinations to fix the price regu-
late the production Of merchandise or COM
merce. 1t is plain that the combinations, the
testimony concerning which is herewith
submitted, have been Intentionally formed
SO as to avoid if possible, the
charge that the trust such or
the trustees in that capacity either fixed the
price or regulated the production of any ar
tlcle OF merchandise or commerce. Complaint
having been made to him by citizens OF the
State OF New York against the Sugar Trust,
and one of the corporations whose stock it
holds, the Acknowledgement Of that State has.
after hearing. directed prosecutions to be com
menced against that trust and the corporation
complained OF. upon grounds which are set
forth IN an elaborate opinion, which is submit
| ted as part Of the evidence in relation to that
trust and as containing careful statement of
the law Of that State, so far as it affords any
| remedy against such trusts
|
4 Wanted HIS