The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1888-08-09
ABOUT TRUSTS.


4 Congressional Committee Dives Into
the subject Only to Find 1t Too deep
for Thorodgh Investigation In the Time
AlIotted-It win Sit During the Recess
How tho "Combines" Evade tho
Laws.
WASHINGTON, July H.-The House Com.
mittee on Manufactures submitted a report
concerning the trusts investigation, which
was ordered printed. The report says that
the committee has been unable to COM
plcte thoroughly the investigation and in
quiry and recommends tho passage Of q res
oiution authorizing It to continue the
same during the Congressional recess Tho
report continues:
"Your committee further report that the
names OF various mb:nat.ons and trusts have
been from time to me furnished to vcur com.
mittee; that the number OF such combinations
is very large. and tnat your committee in call.
ing witnesses and taking testimony proceeded
upon the following plan Of investigation, l. e..
to inquire:
FIRST, with relation to the trusts or combi.
nations In lines or business which are connect.
cd with or use the articles In which there ex.
ists competition in our markets between the
domestic product and the foreign product, i'm
rorted and dutinble under our tariff laws.
Second with relation to such combinations
this country or are not subject to import
duties.
"Third, with relation to such combinations
dealing in articles which are subject to taxa
tion under the internal revenue laws OF the
tinted 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 it
in relation to these trusts. Sub
mitting III testimony your committee desire
TO call the attention of the House TO the form
Of organization OF these two trusts. Both OF
them are organized upon substantially the
same plan. From the testimony 1t 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 to various individuals and that these
individual stockholders have surrendered
their stock to the trustees named in
the agreement creating these trusts and ac-
cepted in lieu thereof certificates issued by the
trustees named therein.
1.-THE agreements provide that the various
corporations whose stock is surrendered TO
the trustees shall preserve their identity and
carry on their business. In the sugar trust
agreement the provision Is that the sew
eral corporations shall maintain their
separate organizations, and each
shall carry on and conduct its
own business. In the Standard OIL Trust agree
ment IT is provided that oil property. real
and personal, assets and business. shall be
transferred to and vested In the said several
companies. The duties OF the trustees are
restricted to the receipt Of the dividends
declared by the various corporations and the
d strihution OF the aggregate OF thom to tho
holders OF the trust. cert iicates 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 tho trustees, as such. ever
do any other business than to re-
ce We and distribute these dividends and
exercise the only other function given 10 them
BY the trust agreements, that is, to hold
| the stock to the various corporations
! in such corporation. The care with which
| the trustees avoid making any agreement
relating to commodities appears from the
| Testimony as to the arrangement with
the OlProducers' Association In the fall
Of lss1. The officers OF the Producers
Association testified that agreement
was then made with the Standard
Oil Trust by which s,UO,OOO barrels
| OF oil belonging To the Standard OIL Trust was
| set apart for the benefit OF the ASSOCIATION
| upon its agree ng to curtail the pro.
| duction Of crude OIL at least 1880 bar.
| rels per diem. These witnesses un.
coubtedly understand that Their arrange.
ment was with the trustees Of the
Standard OIL Trust. But the written agreement
produt cd and now in evidence shows that II
was made with AMI by the Standard Oil Com
pany, of New York, one OF the companies
whose stock IS hell by the trustees, and
that the Standard Oil Trust, or the trus
tees thereof such, are not parties tC
il, nor is either Of them responsible for the
carrying out Of that agreement. This form o.
| com bination was obviously devised for the pur
| rose Of rel ewing the trusts and trustees from
| the charge Of any breach OF the consplrac,
laws Of the various States, Of beint
o combination to regulate or contro
the production Of any commodity; hence thes
| assert that the corpora ions themselve!
which control and regulate the price Of com
modities and the extent OF production
and have tangible property remain
tinct, and not in combination will
each other: that the stockholders who owne.
only the stock, and by well-settled legal rule
had no legal title in the propert!
OF the corporations, entered into th'
agreements and sold the.r stock in III,
corporA rAtions. and accepted in paymen
trust certificates, and that the trustees re
celye and hold only the stock Of corporations
ana have no legal title TO any OF the propert
OF the corporations, and neither buy or sell an,
thing nor combine with nny one TO fix prices o
regulate production OF any commodity"
The committee was given permission t