The morning news. [volume] (Savannah, Ga.) 1887-1900, 1888-07-31
NAMMON'S GOLDEN NAV
TRICKS BY WHICH THE TRUSTS
STEER CLEAR OF THE LAW.

No Agreem ent Relating to CommOdi-
ties Made by the Crafty Trustees
All the New Combinations Being
ORGANIZED on the Same Bas!s-Their
Workings Exposed.
WASHINGTON, July 30.-The house com
mittee on manufactures to-day submitted
a report concerning their investigation of
trusts. They say they have been unable to
complete tho Investigation according to the
scope of the resolution directing it, and ask
10 be permitted to sit during the recess.
The committee say that the number of com
binations coming within the purview of
their instructions is very large, and that
they proceeded upon the following plan of
Investigation to inquire:
/ With relation to trusts or combinations
in lines of business which are connected
with or use articles in which there exists
competition in our market between the do
nestle product and foreign product i'm
ported aud dutiable under our tariff laws
Q With relation to such combinations
dealing in articles which are not imported
into this country as are not subject to i'm
port duties.
3. With relation to such combinations
dealing in articles which are subject to tax
alton under the internal revenue laws of
the United States.
THE TWO BIG TRUSTS.
The committee says it has particularly
directed its inquiry into the methods of and
extent of business done or controlled by the
sugar trust and Standard Oil trust, and
submits the testimony taken before it in
relation to these two trusts. In submitting
this testimony the committee calls the at
tentiOn Of the house to the form of the
organization of these two trusts. Both are
organized upon substantially the same
plan There exists a certain number of
corporations organized under the laws of
the different states and subject to their con-
troll
HOW IT is WORKED.
These corporations have issued their stock
to various individuals, and these individual
stockholders have surrendered their stock
TO trustees named in the agreement Great
ing these trusts and accepted in lieu, there
fore, certificates issued by the trustees
named therein. The agreements provide
that the various corporations whose stock
is surrendered to trustees, shall preserve
their identity and carry on their business.
In the sugar trust agreement the provision
Is that the several corporations shall main
tain their separate organizations and each
shall carry on and conduct its own busi
ness.
HOW THE STANDARD OIL COMPANY DOES.
In the Standard oil trust agreement it is
provided that all property, real and per-
SOnal, assets and business, shall be trans
ferred and vested in said SO geral 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 to voting on
the stock Of the corporations. Trustees
in both cases upon the stand as
witnesses specifically denied that the trus-
tees as such ever do any other business than
to receive and distribute these dividends,
and exercise only one other function given
to them by the trust agreements, that is
TO hold the stock of the various corpora
tions and exercise the rights Of stockholders
IN such corporation.
VERY CAREFUL.
The care with which the trustees avoid
making any agreement relating to commit
tees appears from the testimony as TO the
arrangement with the Oil Producers asSO-
citation in the fall of 1887. The officers of
the producers association testified that an
arrangement was then made with the
Standard oil trust by which 10000 bar
rels of oil belonging to the Standard oil
trust was set apart for the benefit of the
association upon its agreeing to cartail the
production of crude oil at least II, 800
barrels per diem These witnesses un-
doubtedly understand that their arrange
ment was with the trustees of the Standard
OIL trust, but the written agreement pro-
duced and now in evidence shows that 1t
was made with and is signed by the Stan
dard oil company of New York, one of the
companies whose stock is held by the trus-
tees, and that the Standard oil trust, or the
trustees thereof as such, are not parties to
1t, nor is either of them responsible for the
carrying out of that agreement.
OBJECT OF THIS METHOD.
This form of combination 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 regu
late or control the price or production Of
any commodity, hence they assert that the
corporations themselves which control and
regulate the price of the commodities and
the extent of production and have tangible
property, remain with their organization
intact and distinct, and are not in combina-
ton with each other; that tie stockholders
who owned only stock, and by well settled
legal rules had no legal title in
the property of the corporations,
entered into the agreement and sold their
stock IN the corporations, and accepted
lu payment trust certificates: and that the
trustees receive and hold only the stock OF
the corporations and have no legal title to
any of the property Of the corporations, and
neither buy nor sell anything, nor combine
with anyone to fix the prices or regulate the
production of any commodity.
CONGRESS GIVEN A HINT.
The committee deem it proper to call at
tention to this feature Of the combinations
because it is believed that it viii be found
that all trade combinations having similar
aims either have adopted this method or
speedily will do SO, and also because the
legislation which has been proposed 10 this
house and referred 10 comittee has been
directed against combinations 70 fix the
price or regulate the production Of articles
of merchandise or commerce. II Is plain
hat the two combinations named have
been Intentionally formed so as 10 avoid, if
possible, the charge that the trust as such,
pf the trustees in that capacity either fixed
Tic prico or regulated tho production Of
any article of merchandise or commerce.
lie report closes by referring ~ tine fact
Vat proceedings have been brought against
,-e su2ar trust by the attorney general Of
New y iOrk under the laws Of that state.