Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1888-08-17
rHE GREAr "rBrs1r MoNopoLIES
FACTS BOUGHT OFT RY THE HOUSE COMMIT
TEES INVESTIGATION


FACTS BOUGHT OFT RY THE HOUSE COMMIT
TEES INVESTIGATION.
The preliminary report Of the House
committee charged with the investigation
Of trust combinations throws fresh light on
the Standard oil monopoly-th the great orig
inal model on which all these illegal com
bIue, have been formed. 1t appears that
while the main purpose was to strengthen
the remorseless power Of the trust great
cunning was shown in the effort to keep it
beyond the reach of the law The House
committee says the Standard oil agreement
provided that all property, real and per
suual. asset, aud business should hr tran.
fcrred to and vested in the companies bee
longing to the combination, and the sole
duty of the trust was 10 receive the dIvi-
deuds declared and distribute them among
the holders Of the trust certificates This
together with holding and voting ON the
stock. seems 10 bee the only function vested
In the trustees by the agreement. Beyoni
a doubt the trustees control and dominate
absolutely all the concerns in the combine
and the cunningly drawn agreement i in
tended to protect the monopoly from pros
ecution under state laws against cumhina
tion, to control prices or fore,tall the mar
ket.
As illustrating the methods Of the Stand
ard trust the committee cites transaction
betwocn that combine and the Oll produc
crS association i'm 1851. The contract was
that . OOO, OUO barrel, Of oil then belonging
10 the trust should he set aside for the ben
eft Of the Producers, association ON coudi
tion that it would curtal the production Of
crude oil at least 1880 barrels per day
The representatives of the Producers a.
-ociation understood definitely that the ar
rangement they mnde was with the Stand
ard oil trust. and when the written con
tract was produced before the House com
mittee it was found to be signed by the
standard Oh company Of New York, II
corporation which was simply one of the
members Of the trust but had no au
thority whatever to represent or bind the
federated monopoly. 1t is propoSterous to
suppose that the agreement was with the
Standard oil company Of New York and
that other concerns in the combination
were not parties Ia it and tn be affected 10y
it. Yet ON the face Of the papers such
would seem to he the fact and there is not
line in black and white to prove the con
trary. The conspirators got together, and,
after they had made the arrangement to
curtail production gave each other the
wink and the trust representatives stood
aside while the official of the New York
company was brought in to sign the con
tract. The real trust is a ghost that signs
no contracts, binds itself to nothing, acts
| through secret agencies, and yet rules the
| oil industry with remorseless greed and
| power.
| The Standard oil combination is the pro
| genitor Of all the modern American trusts,
and they aim to move in equally mysteri
| Gus way. The investigation already made
! by the House committee shows that ordin
airy laws against combinations to control
| prices will hardly reach these trusts, for
/ the reason that their contracts are signed
/ 10y dummy corporations aud agents and the
trust itself incurs no legal liability Amau
robbed by ghost need hardly trouble him
self to inform the police or demand that
the culprit be lodged in jail. With most
Of the trusts the articles uf agreement are
kept secret even from the investors and
certificate holders. The trusts are not linn
tied 10y "A charter or required tn make any
reports or statements They pay no tax
on franchises or stock they can increase
their capitalization at pleasure and move
from state tu state when they will, and
while exercising powers that no state woul,
confer ON any corporation, are beyond con
trol and responsible to no one. Invisibl,
aud irresponsible powers like the Standar,
oil trust are rohblng the the public crush
ing competition, and speedily suhiectnl
the country to commercial feudalsm Some
means must he found to break the power o
/ these secretly banded monopolies.