New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-03-07
THE TRUST INVESTIGATION.
REPORT OF THE GENERAL LAWS CON-
MITTEE
A BILL TO DE PRESENTED THAT WILL. If MADE
LAW, PREVENT COSsPIRACIEs AGAINST C0MPE-
Triton IN TRADE.

A,y.xy March 6-Thc General Laws Commit
too this afternoon submitted TO tho Senate tho
report Of its investigation Of trusts. Following
are extracts:
During Investigation the formation nanasement ana
effect following combinations commonly KNOW" q"
trusts were made the chief subjects OF inquiry Sugar.
mil rubber, cotton seed oil, envelopes ele-
vator oclcth Standard oil. butchers glass ana iuhi|
ure However different the influences which gave rise 10
these combinations may be, the main purpose maasc
mont and effect OF ali upon the public IL the same 70 W.T.
tho aggregation OF capital It's power or confronting .ho
and output OF various necessary comnooto
the acquisition destruction OF competitive properties all
leading the final and conclusive purposes OF aha'hs
compctlon and enabling tho combinations to TX the price
al which they would purchase tho raw material from '"o
producer and which they would sell tho refined proouo.
tho In any event the pubhc NJ cue" Gnu
industrythe producer and tho consurner-is ana "
tended IN certain sense. ut the mercy Oh no syn
dcate combination or trust
THE SUGAR TRUST.
The report reviews the history OF the orgahi-
zation of the Sugar Trust and says
Tho trust absolute control OF all the Industry
and In It's discretion takes in new corporations when sur
render their stock at valuations agreed upon and In return
receive certificates OF stock in the Sugar Rehncres 'o
pany for which reception Of new corporations the original
agreement e full provision IL Is obvious 'a'
this combination representing 80 per cent Oh inc
sugar refining capaclty OF Coast and all the
sugar refneres In the State greatly affect ana Tor
tmo least control the price Of the raw material ana the
refined product and this without regard to the interests Vi
the
THE COTTON SEED OIL TRUST.
The Cotton Seed Oil Trust is next considered
The committee says:
The main and in fact ayowcd object OF this trust Is
get keep the manufacture and sale OF cotton
seed OIL and end buys up destroys or assmates
all individual industries Of Its kind within It's REACH
Tho cotton seed oil while 1t has many OF the very
worst features OF tho trust Kind. claims that while its
located In NewYorI It's revenues are Drought
hitler distant States where It's enterprises are carreu
on deposited and that in measure II con-
tribute, to the wealth and prosperity OF New-fork
THE MILK MONOPOLY.
The Milk Exchange, Limited, is next considered
in the report. OF it the committee says
IT can hardly be called but It's object is to de-
sroy competition and Is monopoly OF The worst sort
Th, corporation formed with the ostenslbe Design OF
hylnc and selling milk but the mldilemcn who have 1t
in their It from its original purpose ana use
It by assuming through its authority to fix tho pce OF
milk oblgc the farmer to sell his milk at ana cents
a quart hcm-the members OF the MIX Exchange Linn
ltel-,nd they are left to charge In the city
or and times 10 cents quart at their dlscre-
ton This Organization should receive the immediate at
tentlon Attorney General and he should bring an
action o declare It's charter forfeited.
THE GREAT AND TIE ORIGINAL TRUST.
Til, Standard Oil Trust, the committee says, Is
the orgnal trust and its success has been the IN
centive to the formation Of all other trusts or
combinations. The report continues:
It is the type Of system which has spread like dis
through the commercial system of the country The
value properties Of the several corporations known
as tho STANDARD Oh Company OF Ohio fixed at the
Ing OF the trustees at $70OCOCOO It's net earnings
for years preceding being annually ID 2S6 per cent
on that This aftcrward increased In ac-
cordance With provision OF the trust agreement TO $780,
600 600 and OF the property in the trust
control the present time is not less than sl45o00oO0
This In the hands of nine energetic Intelligent
aggressive IL OF the moss active and possibly the
/ d,il. we'd Ower ont
When It Is remembered that al. this wealth is the
growth twenty years. that this property has than
doubled in value In six and that with this increase
has made aggregate dividends during that period
Of $50 600 tho people may well look with appre
en-Ion upon rapid development Capitalization Of
wealth wholly Independent Of legal control and anxousy
seek the modify. II not prevent the nat
ural consequences OF the device producing it.
It Is the claim Of the management Of TINS monopoly tina.
Its Industries furnish employment TO 900 Of
them skilled worknen receiving high The pro-
moters OF the Standard OIL Sugar and Cotton Seed on
Trusts all argue that their combinations do necessarily
have the effect Of raising the price OF the manufactured
article the consumer OF lowering the price tho
product to the producer but that the high price paid
| to the producer and the low pIIce charged
| TO the consumer depend great
upon plant controlled the manufacturer aud
upon the capital his command and that the larger the
capital and the extended tho field OF its industrial
operations tho higher will be the price paid the pro-
Queer OF the material and the lower the price charged
| the consumer ~ the refined product
THEORIES UNSUPPORTED BY FACTS
| The committee did not have time for an extended
| inyesi CATION, but is unable To reconcile these
plausible theories with existing facts. 1t says:
Unfortunately for these theories Of date do
not support them As applied the sugar trust it sp-
that the price sugar largely
the trusts formation Tried by this standard Standard
OIL monopoly has q better apparently, for
! the price Of coal kerosene oil has diminished
steadily since the formation OF the trust. But such
dimnution IN price to the is not due 10 the
Influences OF the Standard OIL Company Trust. but Is
Attributable wholly inde pendent OF it. to wit
the constantly widening field OF oil production and the
increasing volume Of crude oil put upon the market
Certain It is that tho Trust has the power put up the
| prices, II 1t falls to exercise 1t.
Colossal fortunes hastily accumulated always alb
horrent to tho people and In the hands Of private
individuals are often considered menace to good gov
ernment The end, il not the purpose OF every COM
binaon Is destroy competition and leave people SUBJ
jet the ruio OF q monopoly. Tho STANDARD Oil and
other trusts have grown by means like these and the
people and levy their relentless toll the pint Of milk
the pound Of meat end even on tho loaf OF bread
| NO TOLERATION OF CONSPIRACY.
The committee inquiries how these evils are to
be remedied without, by going too far. injuring
the commercial interests Of the State. The report
continues
| We are not unmndful OF the fact that this State,
easily point Of commercial Importance has al
ways called capital into its borders by wise and equal
this rule necessary. wise people will always find
a remedy consistent with Its prosperity for every
great evil OF State. and In this capital should
be subjected tho rule OF which IL has always claimed
be the strongest adyocste-that combination or
conspiracy should BIO tolerated In this State which would
interfere directly indirectly with the exercise Of the
boldest competition in every industry or calling
Your committee will at early day report bill
which VIII, II 1t becomes law. modify. II II does not
prevent, the greater evils complained of.
That It is proper subject for further and more COM
plee Investigation your committee arc unanimously OF
opinion but whether such further investigation shall
| be made remains for the Senate to decide.
| FRANK b. ARNOLD.
| EUGENE +. O'CONNOR
HENRY J. COGGESIiAlL.
| EDWARD q. WALKER