South Branch intelligencer. [volume] (Romney, Va. [W. Va.]) 1830-1896, 1889-08-09
Observation-Disclosures
FRIDAY. AUGUST 2, 1859.
TRUSTS & MONOPOLIEs.
FEDERATION OF CAPITALISTS.
Capitalization OF industries.
NUMBER vi.

What, then, Is a trusii Not every device
or scheme 5y which compe tition transmits
itself int, con hi oa ton. but actually speak :
ing such as are built upon The gen srsl lines
sketched in my former pa pers. The tr usts
examined are types Of which We have secured
authentic photograph 8, and from these We
may judge all Others, for while their features
differ as becomes sisters. the general family
likeness 10 unmisiaka bic. According to
these types q trust is an arrangement under
which parties engaged in the independent
and competing pursuit OF the same line Of
business consolidate their properties, tSeir
business aud their skill into one great or.
: gsnisatiou, whose control aud ma nsgement
/ are vested In small central Committee or
board.
HOW TRUSTS ARE FORMED.
TIE general and approved method OF
forming trust is as follc VS.:
The several concerns or companies become
corpOrations, II they are not such already.
The owners of the shares Of stock in tGese
corporations transfer all their stock 10 a
7 email number OF trustees. generally selected
4. from tue chief stockholders In the several
con panies. These trustees thus become he
stock holders Of all the C mpsnies, possessing
NJ TO each one the legal power and Guthori.
! " which belong TO the stockholders Of any
| corporation They elect its officers and re-
ceive al its dividends. BY previous agree.
ment a capitalization is agreed upon for the
entire organization that may be increased
as new members enter, which generally
represents not only all tho properties put in
| 10 IL, but liberal addition Of water
For this capital certificates Of shares in the
trust are issued ana appor,ioned in the
quoi-s agreed upoa to the several compsu ies
for distribution 10 tbe former stockholders
in the same, according 10 their respective
amounts Of stock therein. The rcveeal
companies preserve their identity and con-
time their business, each under lis separate
aud independent m.nsgemeu,-st least 10
theery-peying their respective net earnings
! 10 the trustees, who receive and distribgt Il
them 10 the certificate holders. who are new
no longer STOCKHOLDERS in any particular
company, but shareholders in all
sUBTLKTIEs or THE ARRANGEMENT
This arrangement, hs il appears on its
face. would seem ~ contemplate nothiuJ
| more than a general pooling Of earnings or
prof s in the hands Of c)mmittee for diss
| tIibution upon a common basis. while every
company pursued, "a bafore it, own bust
ness career for the trustees, being simply
the common stockholders Of these compa.
! mes, can exercise their authority but once q
-year-at the annual election of officers, dis
fPlaeing an u Unsatisfactory or continuing q
| satisfactory management. But here appears
ohe of the 81 htieiies of the trust. In the
board Of direct oTs Of each one OF tie corpo
ratiors will appear enough of the trustees TO
control Its management. In all the deeds
made public. and especially in that Of the
sugar trust, The power and authority Of the
trustees are left conveniently indefinite, ap.
pearing to be just what the law vests in the
| stockholders OF a corporation. Ii was prov
ed that these trustees had meetings, but KEEP,
no minutes OF III cir proceedings, had no
Office or known place Of business, bat gath.
cred informally at the place OF business oil
any member OF tho board. Ii was Difficult,
10 elicit any thing definite as 10 these gather
ings. president: of two OF the sugar rein
ing companies, who is also = trustee, denied
that any vote was hac action taken or auy
orders given for the shutting down of ref
| cries, the controlling Of production, the
raising or lowering Cf prices. Ia his
words, th trustees rjust felt each other bu,
took no action; hence there was no necessity
Tor keeping minuies, all Of which look;
merely like passing the time OF day be-
tween the individual stockholders ia q nun.
Der OF the joint ventures.
But the fact that these trustees were also
officers in the several companies, aud ihei,
meeting in the guise OF trustees or stock hol.
ders was really q meeting OF actual ma ayers
OF the companies, will show that il was on
ly necessary for them 10 feel each other,
without formal vote or minute, TO know
what should DO done As TO running or shut.
ting down each refinery, depressing or rails
ing prices, and like vital matters VIII ich the
trustees as trustees, indignantly deny ibsir
doing or ever intendi az to do.
CAPITALIZATION OF INDUSTRIES.
OmitLing this last feaidre aud tax
ing the trnst scheme in It's general
outline, il might really seem. as its
FIR ends and defenders are claiming
but another aud healthy step in the
concentration of industry In great
establishments instead of small ones.
This 10 one of the most familiar and
significant tendencies Of our day.
The small mill, the local factory and
the individual capitalists have van .
ished. In their place and out of The
ruin have grown up huge establish
n ems at favorable points for pro-
ductiOn and distribution aud great
corporations.
This is largely due to the mechan-
icGl inventions which have replaced
and indefinitely outs ripped human
labor, the use Of steam power and the
marvellous development Of our trans
portation system,not omit ing the still
more marvellous advance of science.
With greater command Of capital
come better administration moro mi.
Duie economy, superior facilities for
buying snd selling. the increased
skill and production that result from
/ the specialize lIion Of labor, aud the
quick adoption of every improved in .
yention and process.
Prices have been diminished TO the
consumer not only by reason OF con,
SANITY cheapeniDg cost OF produc-
| ton, but because the producer has
been compelled to content himself
with narrow margin OF profit. This
Compulsion has been two. fold fret
as the condition Of securing the lar
ger market which he is obliged TO
have for his goods, and secondly,
from the competition Of rival pro.
| ducers.
Nov, the very object Of the trust
Is 90 relieve him from this last com
pulsiou. Mr. r. b. Tburbor, testify.
ing as to the sugar trust, summed Up
the whole matter in these words :
"a combination unquestionably can
effect great economy. They can buy
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