St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-11-02
TROUBLE IN A TRUST.
The American Cotton Oil
Combine Is on Its Last
Legs.
President Flagler ConfesSeS
That He and His Colleagues
Have Blundered.
Obliged to Sell Oil for Less
Than They Paid
for 1t.
Plan Proposed for Pumping
Some Of the Water Out
Of the Stock.

NEW YORK, Nov. 1.-The annual
meeting of the American Cotton Oil
trust was held to-day. President j. ID.
Flagler called the meeting to order, and
about fifty of the certificate holders
were present. In addition, proxies rep
resenting $4,000 certificates were
handed in. The presidents report
showed that the profits of the trust for
the year ended Aug. 81 were Sl,655, 1888.
At the close of the report. when a mo-
ton was made for its adoption. one OF
the certificate holders asked if it would
be printed for their benefit. Mr.. Flag
Ter replied that while there was no OBJ
lection to tie report being seen by all
the certificate holders there was great
objection to its being made public gen.
orally. 1t would put facts and figures
into the possession of business rivals
which could not be permitted. Now
came the first sign of trouble. E. IL.
Bonner. one Of the certificate holders,
rose with printed paper in his hand,
and asked if ne understood rightly that
the profits for the fiscal year was 81 ,600,-
600. MIR. Fagler said yes. Then Mr..
Bonner wanted to know why the trus-
tees had said in the last circular that
the profits of the year would be &, $780,
QUO. Where had the
MISSING MILLION DOLLARS
gone to? Mr.. Flagler attempted to eX-
plain, but before he had concluded an
other shareholder wanted to know if
the statement in the circular that the
cash and cash assets of the company
were $7,0O0,0 goo, was not also 81 900, 600
too much?'' Gen. Thomas, trustee,
now too up the business of explaining,
He said that the circular had been
issued on reports from the various prop
critics of trust, which were believed to
be correct. Since then. however, the
regular reports had come in, and the
loss of S1,OO0,OOO by shrinkage of values
had been known. He was one of the
trustees; but had done as other
trustees and directors in rail
road companies had usually done; he
had attended meetings and listened to
reports. What had gone in one ear had
gone out of the other, and he had
taken his fee, eaten his lunch and gone
away. He realized now that he had
been remiss in his duties, and was pres
ent to-day to take the cenSure of the
certificate holders. If they wanted his
head, as trustee, they could have it.
Gen Thomas said that when he had
investigated the affairs of this cotton oil
trust he had found that the men who
had been officially conducting its busi-
ness had been buying Oil from rival
companies when the price was up, and
had been Obliged to sell out at less than
they bought it for. They had done the
best they could, but
HAD MADE A MISTAKE.
That accounted for part of the loss
of 81, 100000. Another thing which con-
tributed to the loss was the poor quality
of the last years cotton seed crop.
They had kept this fact secret for a
number OF reasons, but it was fact,
and might as well come out, that for
some reason the oil had been Of SO poor
quality that money did not come in for
it as had been expected in the estimates.
He then spoke of the plan of merging
the trust into company, and said that
by the plan proposed there would be a
reduction in the capital to 81 600, 600,
thus pumping out some of the water
A Certificate Holder-I bought my stock
with the water in IT,
Gen. Thomas-So did l. acknowledge
that bought at high price. and 1 am will
ing to take my medicine with the rest.
Wilson Cromwell then moved that the
certificate holders desire that the
American Cotton Oil trust be merged
into the American Cotton Oil company,
and that a committee be appointed to
consider the plans and arrangements
for the purpose, to report at an adj
jOurned meeting of the certificate hold
ers.
Certificate Holder-Is the plan all ready?
Are we to have any voice in the election Of
directors Of the new company, or is the
whole thing cut and dried?
Gen. Thomas-You will have the right to
decide the whole thing when it comes before
you again.
The resolution of Cromwell was
adopted unanimously, and the commit
tee was then appointed. as follows:
Frederic S. Olcott, chairman; William
l.. Bull, Nicholas Sheldon, James I'll.
Benedict, Edwin ID. Adams and Samuel
Thomas. The meeting then adjourned.