New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-11-02
HARMONY ATLOWER PRICES
THE COTTON OIL TRUST TO BECOME A STOCK
COMPANY.
rrxrnAI. THOMAS DEFENDS THE TRUSTEES
now HE BECAME INTERESTED IN IT.
rpRoRs. BUT no EFFORT TO DECEIVE.

NOW HE BECAME INTERESTED IN IT
ERRORS. BUT NO EFFORT TO DECEIVE.
coneral Samuel Thomas was the conspicuous
eUure at the meeting of the stockholders of the
aeaerican Cotton Oil Trust yesterday. 1t was
~, an open meeting, and the disinterested door
,eener REQUIRED positive evidence before he would
-. orvbody. The list which he consulted at
49,, annlication might be an interesting one if
:. oould be printed Frederick T. Brown, of
~ Uorton g. Co., was one OF the stockholders
-. eating in line Promptly at noon the meet
- oolled 70 order, and the shareholders whose
20 MORO NOT on the list outside the doors.
80, forty persons were present, but they repre-
.a aaa 600 shares out OF a share capital of
go ooo 900 The reading of the trust deed was
s.uanded by one Of the stockholders, but after
.oos discussion, was omitted. The annual report,
,,h;cb covers eighteen months, was then recited.
T, showed net earnings of 81 l,655,7s3 and net
assets Of S4669,l92 The offsets on both sides
u,ere not given in detail, but the result was not
what had been expected. An inquiry about the
discrepancy of about million dollars in the net
earnings made General Thomas the spokesman In
defence of the Trust He said afterward that he
had made the most eloquent speech of his life; the
counsel of the Trust said that General Thomas
smoke in a rambling way. The statements by
General Thomas may be summarized in this way
81 am one of the trustees, and have discharged
the duties as l would do in a railroad corporation
Ihaye attended meetings of the board occasionally,
heard what others said, learned all could and
took nv little fee. 1 also took the lunche on that
was provided
He explained at some length how he had be
rome identified with the trust. A short time
AGO" he said &" returned from the Pacific coast,
and was astOnished to the price Of certificates
so low I tried to find out the reason. | do not
know much about trust, and l fancy most
of the persons present do not know much more
nbout a trust than did at that time
General Thomas tried to explain the meaning
of the word trust lie declared that trust
was "a simple gathering together of stocks
of corporations organized under different State
laws, the owners agreeing that the companies
operated severally by them should be operated
ss one corporation by trustees, who should hold
the several stocks and issue in place OF them
their own certificates.
why trust was organized he said, " is
beyond my comprehension. l do not know any
thing about this trust yet Having bought the
certificates in the open market, and not at bottom
prices began TO look into the business. Nowhere
In my forty years OF business life have ever
come across business requiring SO much
attention and having so many com
plicated interests. When / asked trustees about
certain branches of the business began TO realize
their Inconsistencies and their errors of judgment;
/ appreciated the fact that they were overworked
The errors were made in way that was not
specially blameworthy They might have been been
made in the circumstances by any men IN their
position. For instance, the officers bought
TOO much oil from competitors. and
the oil was not as good az they
had expected These facts could not be disguised
Losses in consequence OF these mistakes had been
suffered L admit that many mistakes have been
made but there was no attempt TO deceive the
shareholders, who have right to know the bot
tom facts. The outlook is vastly better. Cn
profitable contracts have expired, and mistakes
will not be repeated. am encouraged by the fact
that the Trust has earned 81, 5000 IN spite OF ali
depressing conditions"
General Thomas expatated an the disadvantages
OF secrecy and the consequent risks OF trustees,
and suggested the appointment of committee
10 consider the plan of turning the Trust INTO
corporation. He sad in closing: DO not
want ANYTHING more to do with the Trust. L
am tired of it, and if the certifcate-holders take
no action about the proposed conversion they may
consider my resignation as q trustee before them.
1 think the capital of the Trust may he reduced,
for there is a good deal OF water IN It,"
A stockholder suggested that there was no water
in the stock that he held, and General Thomas
replied that there was no water in the STOCK
held by him. " | did not come into tins enter
prise. as into some other corporations, on the
ground floor l think the properties IN the lrust W
are fully worth from $1,000, 600 TO sIo,oVo:ooo'
counting only the plant and the real estate
William Nelson Cromwell OF counsel Tor the
Trust, promptly presented the following resolu-
Gon
That the holders of American Cotton on Irnsi,
cefifcates assembled at their annual meeting ana
renrcsenting S4 81 900 out of $42 100000 in amount
Of certificates hereby express their desire that the
American Cotton OIL Trust and the property and assets
thereof be merged and organized into the American
Cotton OH Company, corporation oreanzed ana ex
istinC under the laws of the state Of New-Jersey'
upon general basis be considered and fixed by the
certificate holders at their adjourned meeting.
The committee appointed TO report on this plan
consists of Frederick =. Olcott. Samuel Thomas.
Edwin d. Adams Nicholas Sheldon Thomas 5
Benedict and William l.. Bull The result of the
balloting for three trustees to serve three years
plaS Sheldon and G. A. Morrison.