New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-02-02
A DEFENCE OF TRUSTS.
THEY ARE SAID TO BE. BOTH NECESSARY
AND WHOLESOME
DIR, DoDD, COUNSEL FOR THE STANDARD OIL
TRUST, PRESENTS AN INTERESTING ARGU'
MENr IN FAVOR OF COMBINATION
AND SAYS IT WILL STAND IN
LAW AND IN LOGIC.

AND SAYS IT WILL STAND IN
LAW AND IN LOGIC.
Trusts. in the strict sense of the term, are
formed by the stockholders of various corpora
tions placing their stocks in the hands OF trustees
with the result that the stockholders thereby De-
come interested in all the corporations whose
stocks are thus placed in trust, and the corpora
tions are managed with view to the united IN
terests of the stockholders. The corporations are
no longer competitive, but cooperative
Such trusts, like all other business combina-
lions, whether partnerships, associations OF cor
porations are evil if organized and conducted for
evil PURPOSES and beneficial if organized and con-
Quoted for legitimate purposes. There can be no
objection to the mode of combination if the pur-
pose be a valid one. There is at least one good
and sufficient reason for the existence Of this par
ticular form of association arising out OF our
peculiar combination of Federal and State UoV-
ernments Corporations are created by the otaues'
are citizens of the State where formed, ana nave
no right to do business in other States except py
a species of liberation called interstate comfy
In some States foreign corporations may not noio
land and in others they are Disseminated against
by taxation. Consequently, when partles aSSo
riate themselves and their capital for doing bust
ness in different States. they find II convenient
to organize corporations in each separate State in
which their business is localized, and TO secure
unity of interests of their separate corporations
nv a trust Notwithstanding all that has been
said of the purposes and objects of trusts this was
the sole reason for their original formation, and
must be recognized as reason for their exist
once so long as business corporations cannot be
organized under Federal laws.
The public care little for the mere form OF
business associations. They are interested IN re-
suits They assume that the trusts now existing
have been formed for certain purposes and have
certain effects; consequently, all arrangements
supposed to have such purposes and effects are
classed as trusts no matter whether the lnstru-
mentality be a trust, properly speaking, or some
pther form of combination, or simple agreement
and arrangement without organized combination
Any discussion of trusts would be barren which
did not recognize this wide meaning. 1t must De
considered to what extent the supposed evil pur-
poses and effects are in fact evils, and to what
extent they are chargeable upon trusts In the
proper sense of the term.
ANTITRUST LEGISLATION.
full and specific statement of the evils sup
posed to be inflicted upon the public by trusts may
be obtained by studying proposed and enacted
antitrust laws. Bills TO suppress trusts have
been presented in Congress and in nearly every
State of the Union, and in many States have
become laws These bills can be safely assumed
TO set forth the opinions of all classes OF people
in all portions of the land expressed in the clear
est terms. An examination of scores OF such Dils
shows that the evils which legislators are anxious
to suppress can be classified under few heads
A law passed in Missouri for the punishment
of pools, trusts and conspiracies" enacts that any
corporation, partnership or individual shall dc
guilty of conspiracy who shall enter into any pool,
trust. agreement. combination, confederation or
understanding with any other corporation, part
pership or individual, to regulate or fix the price
of any article of merchandise, to fix or limit the
amount or QUANTITY of any article to be manu-
featured, mined. produced or sold in the State.
law in Texas makes il criminal offence for
persons to enter into any contract or agreement
not to sell, dispose of or transport any article
below a common standard figure. to keep the
price of any article at fixed or graduated figure,
or TO establish or settle the price of any article
between themselves or themselves and others, or
to preclude a free and unrestricted competition
among themselves or others. 1t defines trust
10 be combination of capital, skill or acts by
two or more persons for any of the purposes above
mentioned and numerous others, including COM
bination of capital or skill for the purpose of re-
ducing prices.
law enacted in Kansas to declare unlawful
trusts and combinations makes criminal trusts,
combinations and agreements designed, or which
tend TO advance reduce control the cost OF art-
cles services
Laws in other States make criminal agreements
20 sell a limited specific quantity of any artl-
Gle, to sell any article at certain price, to set
tie or establish price, TO agree upon the amount
of product which shall be sold or manufactured,
10 suspend or cease the sale or manufacture OF
any product: also agreements not TO manufacture
or produce any article, and not to produce, mine
or manufacture more than specified quantity
within a specified time.
These laws may not be considered as embrac-
ing the more conservative views of those opposed
10 trusts / now include, therefore, the most
conservative of the many bills introduced in Con-
gress and now pending in the Senate. This Dill
proposes to render criminal by Federal law an
agreement between two persons intended TO
nrevent full and free competition" and also agree
ments INTENDED TO advance the cost Oh COM
modities to the consumer"
ALI, COOPERATION RENDERED ILLEGAL.
Full" competition means unlimited competl-
ton. An agreement of partnership or OF co-opera-
ton of any kind is an agreement INTENDED 10 limit
connection, and an agreement between partners
mr. tradesmen TO mark up their prices is an agree
ment intended TO advance the cost OF commodi-
ties to the consumer. Such an agreement between
two persons would under the proposed law, SUD-
ject them to fine of $4,000 and imprisonment
for five years.
II must be admitted that il agreements ana ar
rangements of the character specified are maze
criminal, trusts will be ehectualy prevented, as
will also all other business combinations and asso-
Citations Some of the results intended to be
guarded against are inevitably produced by the
formation of any partnership, association or cor
poration They may also be just as surely pro
duced by agreement, understanding and arrange
ment without the formation of either of the forms
80 oo,,b;rotion named Those laws preyent any