The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1889-10-29

members as trustees for all, and 1t IS
possible that in this simple business
device lay the suggestion of a great
movement. There comes a time In
the career OF every conqueror when
he must pause to organize his con
quests, and to replace a provisional by
a permanent and well-devised admin
istration. The Standard Oil Accompany
was no exception. To make sure and
permanent its practical monopoly, to
carry on its business in so many de-
partments and regions with unity and
smoothness of action, to mooolize Its
great forces, and to consolidate their
command into a single executive, were
no less matters of policythan of neces,
sity.
Hitherto the corporation had been
the furthest step then taken in con-
solidating the power of many into the
hands of a few, and in securing the
assured lease of life and aggregation
of means necessary for the great in
dustrial enterprises of modern times.
CORPORATE RESOURCES.
The resources of the corporate struc
ture, chief factors in the progress of
the Standard combination, seemed
now exhausted, and yet it was COM
PEELED to take another step.
It was clearly impossible, or if pos
sible, clearly inexpedient, to mass all
its business, properties, franchises and
powers in a single corporation char
tered and organized under the laws of
any one State. There were legal
difficulties in the way, and other i'm
pedimentsH and objections ~insuperable.
The question presented was, to develop
from many corporations and interests
in corporations a central power, which,
maintaining the free play legally and
industrially belonging to them respect
lively, should bring and hold them in
silent, rigorous cooperation and unity.
But to state the problem nor par
~ticularly: Given a certain number of
persons holding all the stock of four
teen corporations, and also, directly
or through trustees, holding large
amounts of stock in twenty six other
corporations formed under the laws of
many different States, and carrying
on separate but closely connected
branches of business, and required, a
plan for theirorganic unifcation under
a single harmonious and all-powerful
management.
1 have already said that, in acquir,
ing stock in many of these corporations,
the title was taken in the names of
trustees, who held it for the benefit of
the real purchasers. While corpora
tions own every species of property,
shares of stock in them are as a rule
personal property, passing readily by
assignment and delivery of certificates,
without the impediments and formal
ties annexed to the conveyance of real
estate. No transactions are more
common or more easy than the sale of
such shares of stock, few more com,
mon than their pledge or hypotheca-
ton as security for loans, or than
their ownership by one party rs trus-
tee for another.
THE DOCTRINE OF TRUSTS.
The doctrine of trusts, rightly ad-
mired by every enlightened lawyer as
one of the most valuable and perfect
branches of jurisprudence-that doc,
trine which commands and enforces
the most exuberant good faith in the
confidential dealings of men, which
follows and Furnishes fraud in its most
cunning disguises, and throws its pro
lection over the estate of the infant,
Of the incompetent and even the dead
became the shelter under which
were formed the most stupendous
combinations that advancing civiliza,
ton has witnessed.
One of the earliest writer's to dis.
cuss "Trusts" has not inaptly called
them masterpieces of modern IN
genuity and fertility Of resource -
"prodHcts of the highest order OF
business talent and executive ability
with an Organization intricate, secret
and subtle"
But the trust idea is very familiar
and simple, and its appropriation to
its new service, like many great in
ventions and advances, seems both
natural and easy after its accomplish
ment.
If a part of the property of the
combination could be advantageously
held by trustees, why might not all
the shares of stock in all the corpora
tions be deposited in the hands of a
small number of holders, who, by
such deposit should become invested
with the legal ownership of the en-
tire property, and might also by apt
terms in the instrument ~effecting the
transfer be further clothed with all
necessary powers of management
UTILIZING THE IDEA.
This idea seized upon, the develop
ment and perfection of it's details