Workmen's advocate. (New Haven, Conn.) 1883-1891, 1889-07-27
TRUSTS! TRUSTS!
RIPE FRUITS OF THE CAPT.
ALISTlC TREE.
Competition Thing of the Past.
Corners Everywhere-All the
Chief Industries Pooled,
Syndicated and Fin.
ally Trustified.

We submit the following synopsis
of a series of articles by VIM. L.
Wilson in the Baltimore S1tn already
mentioned in these columns.
After reviewing the system of railroad
discrimination through which the Stan
dard Oil Trust was enabled to establish
its monopoly, the writer observes that
this trust was simply a new and more
perfect organization given to an already
existing combination; but so perfect
was it that it served as a pattern to all
other trusts. He then shows how
THE SUGAR TRUST WAS FORMED
by combination of hitherto indepen-
dent and competing companies, all par
ties not already corporations having
first to become such, so that their stock
might be transferred to the trust and
certificates of the trust itself issued
therefor to the parties in interest.
There were sixteen of the largest retin-
cries in the country, engaged in eager
competition in the manufacture and
sale of sugars, that by single agree
ment entered into trust" Almost
Immediately five of those refneries were
closed, three in New York and two in
Boston. One of the New York retiner-
les, the North River, was sold to the
city for park purposes; another and
very large one, the OXnard was di-
rected to be dismantled. Within three
months of the formation of the trust the
price of sugar increased half a cent per
pound. We consume annually about
three thousand million pounds of sugar.
Of this quantity the refineries in the
trust produce nearly, if not quite, two
thirds, the other third being produced
by outside refineries, the sugar houses
molasses houses. An increase of half a
cent pound on two-thirds of our con-
sumption, to wit, on two thousand
million pounds, would give an added
profit of $10,000,00O, which is twenty
per cent. on the certificate capital of
the sugar trust.
THE ENORMOUS PROFITS.
The trust was capitalized at $50, ,000,-
600. As the quota allotted to the North
River Refinery, which subsequently sold
in open market for $325, 900, was $10O,-
600 in certificates, and its owners were
dissatisfied with their share as compared
with others, it is safe to say that the
capitalization was nearly if not twice
the actual value of the properties put
into the trust. The certificates began at
$29 and reached at one time 1926, al
though later reaction brought them
some points lower in anticipation of an
adverse decision in a case affecting the
trust.
After payment of dividends last year
it had, according to the circular of
Messrs. Willett & Hamlin, quoted in
Bradstreet of June 30, a surplus of
$10,OO0,0 900 in its treasury. The same
authority gives its earnings between
Jan. /. 1889, and June 13 as $13,000,-
600 more. Thus its surplus from last
year, with its net cash profits for less
than six months of the present year,
amounted to $23,000,000, probably the
full value of the plant put into the
trust, and nearly fifty per cent on its
watered capital
THE WHISKY TRUST.
The distilers north of the Ohio
River formed, in May, 1887, regular
trust called "The Distillers and Cattle
Feeders Trust Their agreement was,
as testified by their president, modelled
closely after that of the STANDARD Oil
Trust" and is so like that agreement in
its general scheme of organization that
/ need not 60 into details.
The corporations whose stockholders
had become parties to this trust num-
bered 81 on the first day of January,
1888, and it has been paying monthly
dividend of per cent. on its capitaliza-
ton of $50, 200, 900 since that date The
alleged reason for its formation was the
fact that brisk export demand for
spirits arose i'll 1873 and stimulated the
building of new distilleries and an in
creased output. This demand fell off in
1887, and, after trying various pooling
schemes without success, the distillers
adopted the Standard Oil plan. They
have since been running only such houses
as can manufacture most cheaply, having
shut down the rest. The headquarters
of this trust are at Peoria, and it claims
that it has not, in fact, increased, or at
tempted to increase, the price of its
products.
COTTON BAGGING COMBINATION.
When the cotton-gathering season
began last year there came up from the
planters of the South cry of distress
and indignation at sudden and mystic