St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-07-31
Reports Made by the House
Committee on Manu-
features.
Senator Bowen's Amendment
to the Sundry Civil APP
preparation Bill.
Discussion in the House Over
the General Deficiency
Bill.
The Coming Conference of
Physicians and Surgeons
odds and Ends.

WASHINGTON. July 30.-The house
committee on manufactures to-day sub
mitted the following report concerning
the trusts Investigation, which was or
dered printed: 1.-THE committee on man.
ufactures respectfully report that, act
ing under the authority and direction of
q resolution of this house passed the
25th day of January, 1888, they have
proceeded to investigate and inquire
into the matters and things referred to
in said resolution, and, having exam
ined witnesses and papers in relation
plete such inquiry and investigation,
and respectfully report the following
resolution, with the recommendation
that it pass. Your committee further
report that the names of various
COMBINATIONS AND TRUSTS
have been from time to time furnished
to your committee, that the number of
such combinations is very large. and
that your committee, in calling wit
nesseS and taking testimony, proceeded
upon the following plan of inveStlga-
ton. l. e.. to inquire:
First-With relation to trusts or COM
blnations In lines of business which are
connected with or use articles in which
there exists competition in our mar
kets between the domestic product and
foreign product, imported and dutfable
under our tariff laws.
Second-With relation to such combi-
nations dealing in articles which are
not imported into this country, or are
NOT SUBJECT TO IMPORT DUTIES.
Third-With relation to such combine
lions dealing lin articles which are sub
5ect to taxation under the internal
revenue laws of the United States.
Your committee has particularly di-
rected its inquiry into the methods of
and the extent of the business done q
controlled by the sugar trust, and tie
Standard Oil trust, and respectfully
submit herewith the testimony taken
before it in relation to these two trusts.
In submitting this testimony, your COM
mittee 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 it appears that
there exists a certain number of cor
poratiOns 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
" III UAlO Oe,1OOuiCuG SIO
ing these trusts and accepted in lieu
thereof certificates issued by the trus-
tees named therein. The agreements
provide that the various corporations
whose stock is surrendered to the truS-
tees shall preserve their identity and
CARRY ON THEIR BUSINESS.
In the sugar trust agreement the pro-
vision is that the several corporations
shall maintain their separate organiza-
tons, and each shall carry ON and con-
duct its own business. In the Standard
Oil trust agreement 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 the trustees are restricted
to the receipt of the dividends declared
by the various corporations, and the
distribution of the aggregate of them to
the holders of the trusts certificates,
pro rata, and to holding and voting
upon the
STOCK OF THE CORPORATION.
The trustees in both cases, upon the
stand as witnesses, specifically denied
that the trustees as such ever do any
other business than to receive and dis
tribute these dividends, and exercise
the only function given to them by the
trust agreements, that is, to hold the
stock of the various corporations and
exercise the right of stockholders in
such corporation. The care with which
the trustees avoid making any assess
ment relating to commodities appears
ment with the Oil Producers associa-
ton 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 5000, 900
barrels of oil belonging to the
STANDARD OIL TRUST
was set apart for the benefit of the as
ISOLATION, it agreeing to curtail the pro-
duction of crude oil at least H. 500 bar
reIs per diem. These witnesses I'M
doubtedly understand that their ar
rangement was with the trustees of the
Standard Oil trust. But the written
agreement produced, and now in evil
dence, shows that it was made with and
is signed by the Standard Oil company
of New York, one of the companies
whose stock is held by the trustees, and
that the Standard oil trust, or the trus-
tees thereof as such, are 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 trustees from the charge of
any breach of
THE CONSPIRACY LAWS
of the various states, or being combi-
nation to regulate or control the price of
production of any commodity: hence,
they assert that the corporations them.
selves which control and regulate the
price of commodities and the extent of
production and have tangible property,
remain with their organization intact
and distinct, 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 arrangements and sold their
stock in the corporations and accepted
in payment trust certificates, and that
the trustees receive and hold only the
stock of corporations and
HAVE NO LEGAL TITLE
to any of the property of the corpora
ton, and neither buy or sell anything
nor combine with any one to fix prices
or regulate the production of any COM
modify"
Your committee have deemed II
proper to call attention to this feature
of these combinations because it is be-
lieved that it will be found that all trade
combinations having similar aims,
either have adopted this method or
speedily will do SO; and also because
the legislation which has been proposed
10 JnlS mouse anu referred 10 your COM
mittee has been directed against combi
nations to fix the price or regulate the
production of articles of merchandise OF
commerce. 1t is plain that the combi
nations, the testimony concerning which
is herewith submitted,
HAVE BEEN INTENTIONALLY FORMEI
80 as to avoid, if possible, the charge
that the trust, as such, or the trustees
in that capacity either fixed the price o.
regulated the production of any article
of merchandise or commerce. Com