River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1888-08-02
ABOUT TRUSTS.

ABOUT TRUSTS.
A Congressional Committee Dives Int
the Subject Only to Find IL Too Deep
for Thorough Investigation in the Time
Ailotted-It VIII Sit During the Recess
How the "Combines" Evade the
Laws.
WASHINGTON, July 31.-The House COM
mittee on Manufactures submitted report
concerning the trusts investigation. which
was ordered printed. The report SAYS tb at
the committee has been unable to com
plete thoroughly the investigation and in
quiry, and recommends the passage Of a res
olution authorizing it 10 continue the
same during the Congressional recess. Tie
report continues:
Your committee further report that the
names OF various comb 1at.oas and trusts have
b. N from time TO tine furnished 10 YOUR COM
mttee; that the number Of such combinations
Is very large, ard that your committee IN cali
ing witnesses and taking testimony proceeded
upon the following plan OF investigation, l. e..
10 inquire:
First with relation 10 the trusts or oombi-
nations In lines OF business which are connect
ed with OF use the articles in which there ex-
lists a competition in our markets between the
domestic product and the foreign product, i'm
rorted and dutiabIe under our tariff laws.
Second. with relation TO such combinations
dealing in articles which arc not imported into
this country or are not subject 10 import
duties.
Third. with relation TO such combinations
dealing in articles which are subject 10 taxa
tion 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 1t
in relation 10 these trusts. Sub
10 call the attention OF the House 10 the form
Of organization OF these two trusts. Both OF
them are organized upon substantially the
same plan. From the testimony IL appears
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 their
stock 10 various individuals and that these
Individual stockholders have surrendered
their stock 70 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
corporations whose stock is surrendered TO
the trustees shall preserve their identity ana
carry on their business. In the sugar trust
agreement the provision is that the sew
sral corporations shall maintain their
separate organizations and each
shall carry on and conduct its
own business. In the Standard on Trust agree
ment il 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 lie trus ees are
restricted 10 the receipt Of the dividends
declared by the various CORPORATIONS and the
distribution of the aggregate Of them 10 the
holders Of the trusts certificates pro rata, and
10 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
ceye and distribute these dividends and
exercise the only other function given TO them
by the trust a reemeuts, that IS, 10 hold
the stock 70 the various corporations
and exercise the right Of stockholders
in such corporation. The care with which
the trustees avoid making any agreement
relating 10 commodities appears from the
testimony to the arrangement with
the o lProducers' Association in the fall
OF 1881. The officers Of the Producers
Association testified that agreement
was then made with the Standard
OIL Trust by which s,Go0O0 barrels
Of oil belonging 10 the Standard OF Trust was
set apart for the benefit Of the ASSOCIATION
upon its agree NJ to curtan the pro
duction OF crude OIL n least 1850 bar
reis per diem. These viii esses un-
foubtedly understand that their arrange
ment was with the trustee OF the
STANDARD OIL Trust. But tie written agreement
produced and now IN evidence show that il
was made with and by the STANDARD Oh Com
pany. OF New York one Of the companies
whose stock Is held by the I lstces, and
that the Standard OIL Trust or the trus-
tees thereof as such. arc not parties TO
il. nor is n, her Of them responsible for the
carrying out OF that ag-.vment. 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 OF control
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 property
| OF the corporations, entered into the
agreements and sold their stock IA The
corporations. and accepted in payment
trust certificates, and that tho trustees re-
ceIve and hold only the stock OF corporations,
ana have no legal title to any Of the property
of the corporations, and neither buy OF sell any
thing nor combine with any one 20 fix prices or
regulate production OF any commodity"
The committee was given permission "a
sit during the recess.