Press and daily Dakotaian. (Yankton, Dakota Territory [S.D.]) 1880-1889, 1888-03-12
ABOUT THE SUGAR TRUST.
rHE PLAN UPON WHICH THE COM.
BlNE WAS EFFECTED.

NEtch sugar nchiieTs IFoNluG fShiiiSt
Beimg Down-Trodden and Oppressed
Protection of the Product.
WASHINGTON, March 9.-The sugar
trust agreement read before the house
committee on manufactures, ~recites:
The objects of this agreement are:
First-To promote economy of admins
t%ration, and to reduce the cost CT REIN
ing, thus enabling the price of sugar to
be kept as low as is consistent with a
| reasonable profit.
Second-To give to each refinery the
benefit of all appliances and processes
to improve the quality and to diminish
the cost of refined sugar.
Third-To furnish protection against
unlawful combinations of labor.
Fourth-To protect against induce
ment to lower the standard of refined
sugar.
Fifth-Generally to promote the inter-
ests of all parties hereto, in all lawful
and suitable ways. The document then
proceeds to declare that the parties here
to who are not corporations. shall become
such before the deed takes effect, and
| sets forth the construction of the board,
its method of filing vacancies, and en-
acting bylaws. 1t is declared that no
member of the board shall, during the
time that he holds office, buy any sugar,
or be interested, directly or in
directly, in the purchase or sale of sugar,
whether for the purpose of speculation or
otherwise, without a vote of che majority
of the members of the entire board. For
violation of this provision he may be re-
moved as a member of the board, and
shall be liable to account for all profits
which shall be realized by Kim, to the
board, to the pro rata benefit of the GER
tificate holders. AS it is desirable that
the board shall consist of members who
are largely interested in the properties
and the business contemplated, it Is here
by agreed that all members of the board
shall be free to join in or be-
come parties to the agreements and
transactions which the several boards of
directors hereinafter referred to, or that
the board may arrange, to the same ex-
tent and in the same manner, and with
like effect, as if they were not members
of the board. The said board may trans
fer, from time to time. to such persons as it
may be desired to constitute as trustees,
directors or other officers of corporations,
so many Of the shares as may be neces-
sary for that purpose, to be held by them
subject to the provisions Of this instru-
ment. Such transfers may be transferred
by the president and treasurer of the
board in behalf, and as attorneys for the
board for that purpose, and to be trans
ferred when so requested by the board.
The membership of the board is stated.
The board is authorized to appoint from
Its members a president, vice president
and treasurer, and also a secretary, who
may or may not be a member Of the
board; to fill vacancies, and appoint com
mittees. The plan is, the several cor
porations, parties to this agreement shall
maintain their organization and each
shall carry on and conduct their
W business. The capital stock
OF each corporation shall be
transferred TO the board, and in
lieu of the same certificates not exceed
ing $50, 900, 900, divided into SOC, 600
shares, each 800, shall be issued by the
board, and distributed as hereinafter pro-
vtded. Under the holding sstitlen it is
declared that the shares of the capital
stock OF the several corporations shall be
transferred to the names of the members
OF the board as trustees, to be held by
them and their successors as members Of
the board, strictly as joint tenants. OF
the shares allotted to the several rein-
cries, 10 per cent. is to be left with the
board, and this, together with
any unallotted shares. Of the
$50, 900, 1000, shall be subject
to be disposed Of by the board, either
for the acquisition of. other refineries to
become parties to this, by requirement Of
additional capacity or appropriation of
the several, refineries, The funds neces-
sary to enable the board to make pay
ments, it is provided, may be raised by
mortgage, to be made by the corpora
tions, or by such other means as may be
satisfactory to the board. The number
of shares and the total issuable by the
board, may fropa time to time be increased
or diminished by deed executed by e
majority. The capital stock Of other
refining companies may be transferred to
the board with o consent of o majority
thereof, at valuations and on terms satis-
factory, to be held by the board under
and subject to the terms to the deed, and
certificates may be issued therefor, and
be sold to provide funds for such pur-
chase, and lei corporation viii become
a party to the deed. The deeds to be
in the sole custody of the president of
the board, and shall not be shown or de-
hyered to any corporation, firm, person,
or persons whatsoever, except by the ex-
press direction and order of the board.
a copy of said deed shall also be lodged
with q member of the board residing in
Boston, to be held under similar condi-
tons.
Witness Parsons said that no certificates
had been transferred to corporations as
such, the stock held by the trustees be-
ing held by them as individuals. repre-
senting the interest at stake. 1t must be
remembered, however, that the agree
ment retained 10 per cent. of the entire
capitalization with the board. There has
been no dividend or profit declared by
the organization, and no books are kept.
each refinery keeps its wi books and at
tends to its w business. The reports
of the workings of each are made to Mr..
Searles, a member of the trust. Three
or four refineries were admitted after Or
gan1zat1on, one In St. Louis, and two in
New Orleans. The capitalization was
not fictitious. The actual cost of the
sugar refneries, which composed the
trust, was at least go per cent.
of the capitalized amount, to
say nothing of the value of the business.
There have been no profits to go into n
general fund, to be distributed to the
stockholders. Sugar has advanced In
price In London since this trust was
organized, but, owing to the ability of
this trust to control prices here, there
was an advance of only a half-cent per
pound here, as they didn't think it was
policy to take advantage of the advance.
Had it not been for this ability, the in
crease would have been greater. The
rate Of wages paid has not been changed
since the trust organized. The refneries