The new dominion. [volume] (Morgantown, W. Va.) 1876-1904, 1889-07-27


Hitherto the corporation had bee
the furthest step taken in consolida
ting the power of many into tn
hands of few, and in securing th
assured lease oflife and aggregation
of means necessary for the great in
dustrial enterprises of modern times
CORPORATE RESOURCES.
The resources of the corporal
structure, chief factors in the pro
gress of the Standard combination
seemed now exhausted, and yet /
was compelled to take another step
1t was clearly impossible. or i
possible, clearly inexpedient, to mas
all its business, properties, fran
chises and powers in single cor
poration chartered and organized
under the laws of any one State
There were legal difficulties in th,
way, and other impediments and oh
jections insuperable. The question
presented was, to develop from many
corporations and interests in cor
porations central power, which
maintaining the free play legal,
and industrially belonging to then
respectively, should bring and hole
them in silent, rigorous cooperation
and unity. But to state the problem
more particularly: Given Il certain
number of persons holding all tn,
stock of fourteen corporations, and
also, directly or through trustees
holding large amounts of stock il
twenty six corporations formed un
der the laws of many different states
and carrying on separate but closely
connected branches Of business, an6
required, a plan for their organi,
unification under a single har
monious and all-powcrful manage
ment
/ have already said that, in &C
curing stock in many of these cor
porations, the title was taken in tn,
names of trustees, who held it fol
the benefit Of the real purchasers
While corporations own every spe
cies of property, shares Of stock il
them are as rule personal property
passing readily by assignment ant
delivery of certificates, without The
impediments and formalities annex
ed to the conveyance of real estate
No transactions are more common OF
more easy than the sale of sucl
shares of stock, few more common
than their pledge or hypothecatior
as security for loans, or than theil
ownership by one party as trustee
for another.
THE DOCTRINE OF TRUSTS.
The doctrine of trusts, rightly ad
mired by every enlightened lawyer
as one of the most valuable and per
feet branches Of modern jurispru
dence-that doctrine which com
mands and enforces the most exuber
ant good faith in the confidential
dealings of men, which follows ant
Furnishes fraud in its most cunning
DISCUSSES, and throws its protection
over the estate of the infant. of tht
incompetent and even the dead-be
came the shelter under which were
formed the most stupendous comb
nation that advancing civilization
has witnessed.
One of the earliest writers TO dis
cuss TRUSTS" has not inaptly called
them masterpieces of modern in
genuity and fertility of resource
products of the highest order Of
business talent and executive sbili
ty, with an organization intricate
secret and subtle"
But the trust idea is very familiar
and simple, and its appropriation tt
it's new service, like many great in,
ventions and advances, seems both
natural and easy after its accom-
plishment.
If a part of the property of the
combination could be advantageous
ly held by trustees, why might no,
all the shares of stock in all the
corporations be deposited in the
hands of a small number of holders
who, by such deposit should become
invested with the legal ownership Of
the entire property, and might also
by apt terms in the instrument eff
fecting the transfer be further cloth
ed with all necessary powers O
management.
UTILIZING THE IDEA.
This idea seized npon, the dcvel
opment and perfection of its details
called for the amplest legal knowl
edge and skill and keen business
foresight and sagacity, both of which
were at the command Of the Stand
ard alliance. Their finished produc
is seen in the agreement, entered int
July 2, 1882, creating the STANDARD
Oil Trust The outline of thi
elaborate agreement is all l can ex
pect to give, or to make plain to tn
general reader.
The parties to it consisted of tire
classes: First, all stockholders ant
members of fourteen corporation
and limited partnerships. Second
forty-six individuals by name, o
whom one was a firm and severa
were trustees. Third, a portion 0
the stockholders and members O
twenty-six other corporations ant
limited partnerships.
AS these limited partnerships wer
to all intents and purposes corpora
tions, l shall use the latter term a
including both.
The forty-six individuals men
toned by name were doubtless tn
same persons intended in the genera
descriptions Of the other classes, a
they alone signed the agreement.
THE PLAN OF ORGANIZATION.
The plan of organization provide,
for the formation in each Stat
or Territory of corporation to b
known as "The Standard Oil Com
pany" of such State or Territory
which should be vested with all pow
ers necessary for carrying on the bus
mess of dealing in petroleum pro
ducts in all their forms and access
cries, and such larger powers a
might be secured. This might b
done by obtaining new charters o
using existing ones, beginning a
once with Ohio, New York, New Jer
sey and Pennsylvania.
To the Standard Oil Company o
each State were to be transferred al
the properties, moneys and bushes