Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1889-07-25
coMBrS1sa suaAa INTERESTS.

snsiness Application OF the Rule
of Addition, subtraction, Division
and Silence-Riches for the skill
fur Few.
Ex.Congressman Wilson in baltimore Sun.
The success of ''The Standard Oil
Trust" whose general structure I at
tempted to make plain in my last paper,
was q marvellous tribute to its designers.
30 perfectly had they conceived their
plan, and with such patience and care
had they marked out it's every detail,
that like the great Oorliss engine at the
Philadelphia centennial its movements
from the beginning were as smooth as
they were restless, and had complete
mastery of all the attached machinery.
1t was capitalized in 1882 at S70, 00O, 900,
for which amounts certificates were
issued. By 1858 it's capital had grown
to 10000, 600, Of which less than
$4,000, 900 represented shares issued for
stock of new corporations absorbed into
ths crust" and all the residue stock
dividoASs. In addition to the stock divi-
dends IL had paid regular quarterly
dividends in money, averaging a per
cent yearly, and reacbiug 10 per cent in
recent years. The trust certificates be-
ginning below par, had gone up to Sl65.
Thus. In less than six years, capital
of $40, 1000, 0D0, at most $76 DOC, 200,
with o less market value, had grown to
q capital of 800 900. 900, with market
value OF $3.50, 900, 600, having meantime
paid regular and liberal dividends. In
, word the trust scheme in itself, by what
II had done, and by what il seemed able
TO do, had doubled tho value of the prop
erty of the combination, although tho in
creasing production of the Russian oil.
fields was causing serious competition in
foreign markets. These facts, which
sound like eastern fables rather than
chapter from our recent commercial his.
tory, will prepare us for the spread of
the new invention as soon as its nature
could be discovered and its possible
effects understood. The next great CON-
bination was 1.-THE Cottonseed Oil Trust"
formed by the stockholders Of more than
20 corporations, operating in IA states,
which aimed at securing the control OF q
recently developed industry whose pro-
duct is fast becoming an important article
of commerce. Some of tire Standard Oil
managers appear in this trust also. But
dealing with an article Of very recent
commercial Importance, neither neces
sary OF life, nor yet of general known
consumption, "The Cottonseed Oil
Trust" impressed the public more rs q
Wall street speculation than as matter
of immediate concern to them. Sugar,
however, Is Of daily use in every house
hold. Its average consumption In the
United States is so pounds per capita,
requiring nearly one.third OF the product
Of the world. or this vast amount we
produce, chiefly in Louisiana, variable
fraction, averaging about one-tenth, aud
import the residue in the form Of raw
sugars, which are refined in this country,
our tariff duties being prohihitory on the
refined grades. When therefore il be-
came known that large majority OF
American refiners had formed sugar
trust" and its operation was brought
sharply home to every household by IN
Immediate and consequent rise iu the
price of an article Of universal consump-
ton, public feeling was ut once excited
to the point where legislatures ard courts
were invoked to uncover and il possible
to suppress this new form Of secret com
bination. The sugar trust was framed
very closely upon its model, bat somt
differences must be kept in view from the
beginning.
The Standard Oil Trust was simply 9
new and more perfect organization given
to an already existing combination.
now TIE SUGAR TRUST WAS FORMED.
The sugar trust was the adoption o
that organization for the purpose o.
forming q combination out of hitherto
Independent and competing companies
The deed under which the sugar trus
was organized was made in October
1887. It provided that all parties to it
not already corporations, should first be
come such, and thereupon that all tn
shares of stock in all the corporation
should be transferred to the board o
trustees, IL in number, designated q
''The Sugar Retineriea Company il
lieu of which stock certificates deolarin
that the holder was entitled to so mau
''shares of the Sugar Reineries Cou
pany" were to be distributed by tn
board to the several corporations, to b
by them redistrlbuted 10 the parties Ell
titled to them. The amount Of tees
certificates was not TO eIoeed $50 900 out
and the quota allotted to each corporate
was to be ascertsined by apprniaemel
and agreement A7 to the nctuI
value OF its property, includir
goodwill, patents and the like, and will
out regard to its capitalization. OF Il
shares allotted fifteen per cent were {
be left with the board with which to q
quire other rehnefies becoming parti,
to the deed to pay for additional capar
ties or to appropriate to the several r
tineries, Each corporation preserves,
before, its identity and separate manag
ment, but the board, ~ the common al
exclusive stockholders Of them all, Gle
their directors and receive the dividend
out of which in turn they declare al
pay dividends on the trust certificates
The parties exacuting tho origin
agreement included uine in New Yor
headed by the great HaVemyer 4 Ed
concern, whose EehneIles have cRpRci
of 5000 barrels, or nearly two aud b.
million pounds daily, and JhEae in 81
ton. Later IL wa asuad by che IN
Louis, two in New Oflsaus and enc
Portland, Me-, aud possibly others
recent months,
These sixteen refiaeries first formi
the trust produce two thirds Of the rehl
sugar Of this country. Among the
oIared objects of the deed were to co
munioste to all the processes or allan
possessed by any; to maintain
standard of refined sugars to prom
economies, SO as TO keep the price
sugar as low as consistent with reas
able profit, aud to protect against uni,
full combinations Of labor.
TTa PROFESSIONS AND PRACTICES.
The deed under which tho sugar IL
was formed while more clear and expI
Ia many respects than it's prototype,
more general in prescribing the duties
the trustees, doubtless to avoid any c
fiict with the laws against combinati
a AZ r.