Omaha daily bee., 1889-10-29
ARE TRUSTS ON THE WANE,

ARE TRUSTS ON THE WANEf
There are signs OF reaction from the
trust movement. Whether induced by
economic considerations, the force OF
public opinion or the apprehension OF
loyal consequences, two OF the great
trusts OF the country are contemplating
n change OF organization. The Amer
lean cotton seed oil trust, which ante
dates all others except the Stand
ard, has taken steps to abandon
the trust plan and TO become
Incorporated under the laws OF New
Jersey. Thiseoncern has certificate
capital OF about forty-two million dol
lars, and IL is composed OF number OF
corporations, principally located in the
southern states. All these properties
have within few months been trans
ferred in order to avoid proceedings
against them in these states, such as
were taken in New York against the
sugar trust. The organization is de-
signed to place the oil company on
plain legal and commercial basis,
where its management will be
open for the inspection OF share
holders, and it's business and methods
must be according to the requirements
OF laws governing corporations. On
the first of the coming month there will
be meeting of certificate holders to
consummate the reorganization, after
which date it is expected the American
cotton seed oil trust will be thing of
the past.
1t is reported that the sugar trust is
making preparations to pursue similar
course. The decision of Judge Barrett
in New York, in the proceedings taken
against one of the corporations OF
the sugar trust, in which he
hel1 that It's charter had been forfeited
and that it should go into the hands of
receiver, has not yet been passed
upon by the general term of the su-
preme court, to which appeal was taken,
but it is commonly expected chat the
decision will be sustained. ia that case
all the corporations in the trust have
incurred the same penalty, and 1T would
simply be necessary for the attorney
general to proceed against them in
order to throw all of them
into the hands of receivers
and thus destroy the trust. 1t is
quite probable, therefore, that in
anticipation of such an outcome the
trust managers are preparing to reor-
ganize on legal basis. If Tie decision
of Judge Barrett shall be sustained,
several other trusts having in their Or
ganlzation corporations chartered under
the laws of New York, and doing busi-,
ness in that state, will be not less vul-
nerable than the sugar trust, and un-
doubtedly proceedings against them
would be promptly taken.
tthus appears probable that the coun-
try is soon to see n general abandonment
of the trust plan. a stock
holder in the cottonseed oil
company, referring to the proposed re-
organization, said: 'You can depend
upon it this move is significant. Other
trusts will follow us. They can't avoid
it; it is a business necessity. The
American policy won't stand trusts.
Trusts generally have got to CO." 1t is
reassuring to find that the organizers of
combinations to control the produc-
tion OF tne country, suppress competi-
tion and fix the prices of commodities,
are discovering that they can not sue
ceed against public sentiment and
faithful administration of the
laws. The principle being once
established. as it has been asserted in
Now York, that corporations deriving
their powers and privileges from the
state cannot transfer them to ire
sponsible parties of whom the state has
no knowledge, and such combinations
as are defined by the title trusts will
cease to exist. Thus far the decisions
of the courts regarding trusts are
uniform, and if the general term of the
supreme court of New York shall sus-
tain the decision in the lower court it
will be generally accepted as almost
conclusive against this form of COM
bination finding legal support anywhere.
There may be combination in trade after
the trusts, but it will have legal stat
and responsibility, and its business and
methods will be subject to the control
and regulation of law.
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STANDING or CANDIDATES.
The Washington cOrresDOndent of the