The Indianapolis journal., 1888-07-31
THE TRUSTS INQUIRY.

THE TRUSTS INQUIRY.
The House Committee Makes Report of the
Facts liz Has So Far Secured.
WASHINGTON July 30.-Ths House commit
tee on manufactures to-day submitted the fol-
lowing report concerning the trusts investiga-
ton. which was ordered printed:
"The committee on manufactures respectfully
report that, acting under the authority and d.
rection of resolution Of this House, passed on
the 10Th day or January. 1885, they have pro-
ceeded to investigate and inquire into the mat
ters and things referred 10 IN said resolution.
and have examined witnesses and papers IN re-
lation thereto. They have been unable TO COM
plets such inquiry and investigation. Your
committee further report that the names of vari-
Gus combinations and trusts have been from
time to time furnished to your COMMITTEES; that
the number of such combinations is very large.
and that your committee, In calling witnesses
and taking testimony, proceeded upon The
following plan of investigation, a., to inquire,
fret, with relation to trusts or combinations in
lines OF business which are connected with or
articles in which there existsa competition
In our markets between domestic product and
the foreign product imported and dutiable under
tariff laws; second. with relation to such
combination dealings In articles which are not
imported into this country or are not subject to
import duties; third. with relation to such COM
binations dealing in articles which are subject
the United States. Your committse has par
ticuarly directed its inquiry into the methods
aud extent of the business done or controlled by
the Sugar Trust aud the STANDARD On
Trust, and respectfully submit herewith the
testimony taken before it in relation
to these two trusts. In submitting this testi-
mopy your committee desire TO call the atten-
tion OF the House to the form OF organization OF
these two trusts. Both of them are Organized
on substantially the same plan. From the tes-
a
number Of corporations organized under the
laws Of the different States, and subject to their
control; that these corporations have issued
their stock to various individuals. and that
these individual stockholders have surrendered
their stock to the trustees named in the agree
ment creating these trusts and accepted In lieu
thereof certificates Issued by the trustees
named therein The agreements provide that
the various corporations whose stock Is surren-
dered to the trustees shall preserve their ident-
ty and carry their business. In the Sugar
Trust agreement, the provision Is that the sever
al corporations shall maintain their separate or
ganizatious, and each shall carry on and conduct
its own business. In the Standard
Oi! Trust agreement il is provided
that all property. real and personal. sssests and
business shall be transferred and vested in the
said several companies. The duties OF the trus-
are restricted the receipt Of dividends de-
clared by the various corporations and the dis
tribution Of the aggregate OF them to the hold
ers of the trust certificates. pro rata and to
holding and voting upon the stock or the corpor-
alton. The trustees In both cases, upon the
stand as witnesses. specifically denied that truss
tees. a. such. ever do any other business than to
receive and distribute these dividends and exer-
else the only other function given to them by the
trust aereements-that is, to hold the stock OF
the various corporations and exercise the right
of stockholders iu such corporations. The care
with which the trustees avoid making any agree
ment relating TO commodities appears from the
testimony as to the arrangement with the Oh
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 100000 barrels or
oil belonging to the Standard OIL Trust set
apart for the benefit Of the association, upon its
agreeing to curtail the production Of crude oil at
least IL, 500 barrels per diem These witnesses
undoubtedly understand that their arrangement
with the trustees of the Standard OIL Trust.
But the written agreement produced and now IN
evidence shows that 10 was made with and 10
signed by the Standard Oil Company, of New
York, one of the companies whose st0ek is held
by the trustees. and that the Standard Oil
Trust. or the trustees thereof such, not
parties to it, nor Is either OF them responsible
for the carrying out OF that agreement. This
form of combination WAS obviously devised for
the purpose Of relieving the trusts and trus.
tees from the charge OF any breach Of
the conspiracy laws OF the various
States, or of being combination
to regulate or control the price Of production OF
any commodity; nence tnoy assert tnht tpe cor
porations themselves which control and regu.
late the price of comm oddities and the extent of
production, and have tangible property. remain
with their organization intact aud distinct aud
not in combination with each other; tha. the
stockholders who owned only the stock. and by
well-settlsd legal rules had no legal
title in the property OF the cor
porations entered into the agree
ments and sold their stock in the corporations.
aud accepted. il payment. trust certificates. and
that the trustees receive and hold only the stock
OF corporations and have no legal title TO any or
the property of the corporations. and neither
buy nor sell anything, nor combine with any
one to fix prices or regulate production Of any
commodity.
your committee have deemed 1t proper to
call attention to this feature Of these comb:na-
tons, because il is believed that il will be found
that all trade ombnstions having similar aims
either have adopted this method or speedily will
do 90. and also because the legislation which has
been proposed to this House aud referred TO
your committee has been directed against COM
b;nations to fix the price or regulate tno produe-
tion OF articles OF merchandise or commerce.
1t is plain that the combinations. the testimony
concerning which is herewith submitted, have
been intep tionally formed. 70 avoid. IL pos
sbe, the charge that tbs trust. as such,
or tie trustees, in that capacity, either
fixed the price or regulated the production Of
any article OF merchandise OF commerce Com
plant having been made 10 him by citizens Of
the State of New York against the Sugar Trust,
and ore Of the corporations whose stock it
holds, the Attorney general Of that State has,
after bearing, directed prosecutions to be COM.
menced againse that trust and the corporation
complained of. upon grounds which are set forth
in ella soorate opinion which is submitted ss
part Of the evidence in relation to that trust.
of that State. so far as it affords any remedy
against such trusts"