The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-05-01
SUGAR TRUST PROFITS.
REPORT OF TIE new YORK SEM
ATE COMMITTEE.

Ton Per Cent Annual Dividends De-
clared at All Times on the Inflated
Capital stock-The Grange of the
Headquarters to New Jersey to
Dodge the Law.
ALBANY, N. Y, April 30-The Senate
committee on general laws submitted TO the
Senate this morning report Of 5000 words
on the sugar trust investi cation. After
reviewing the testimony taken the report
says:
IL appears uncontradicted that the trust de-
clared 10 per cent. annual dividends at all times
during It's existence, not only upon the original
capital OF all the constituent corpora
tons, amounting TO less than S1,000000,
but also upon the fabulous valuation placed
upon the stock of such constituent corporations,
amounting to about S50,0 ,00O, 900 A very Important
part Of the investigation related to the decara-
ton OF these dividends by the trust aud the pro-
fits made by the constituent corporations, out
of which such dividends could be legitimateiy
paid. No satisfactory Inflammation could be OBJ
tained or elected from the officers or employees
OF the constituent corporations respecting the
amount OF profits such corporations had made.
COULDN'T GET THE BOOKS.
The report says that the books Of the cor
porations composing the trust were re-
moved to Jersey City previous to the COM
mencement of the investigation, and quite
likely in anticipation of IL. Without the
books the information respecting the trust
and its inside workings was wholly INSULT
cient to enable the committee TO determine
the real purpose Of tho trust, and also
whether their $ll,000,00 paid in two
and one-half years in dividends upon an
| inflated capital of nearly 1000 900, was
legitimately and honestly earned or not.
la the Judgment of the committee the stub
born and persistent refusal TO produce the
SAID books of account was wholly unwar-
ranted and unjustihable, and the committee
admit that they lsbored under great disad-
vantage in finding that the trust had carried
| out OF the state the books which 1t sought
| to examine.
WHY THEY WENT TO NEW JERSEY
There is cause to believe that the pc sons
| who organized the new sugar trust ana ncor-
| porated the same under the laws of the state OF
| New Jersey di so 70 escape the rgors Of the
| New York laws in several particulars
]. To escape taxation under the laws of this
| state.
2. Under the laws OF New Jersey the COM
| pany could issue common and preferred stock,
which could not be done in New York
g. Under the laws Of New Jersey the new
| company could hold and own stock of other
companies, domestic or foreign. without re-
| striction.
ESCAPED TAXATION.
And the COMMITTEES finds from testimony Of
| Mr.. Havemeyer that the American Sugar Refin-
| II organized under the laws Of New York. the
| tax would have been about S62 500. The Cotton
Seed OIL Company was Incorporated under
| the laws of New Jersey and pad a tax OF
| about $4,000 while in New York state it would
| have boon about $4,000, aud, according to
| the testimony OF Tax Commission Coleman of
! New y ork, many millions of capital are going
| out of New York into New Jersey each year to
| form corporations, which, in the natural order
| of things, should have formed the capital OF
similar corporations here This, in the judg-
M tna &C
| ter to the people in this state.
BOLD EVASION.
In the case of the sugar trust, we find the
| sugar refineries company or trust in this state
| declared to be unlawful by the highest court OF
| the state. Then we witness the bold spectacle
| OF the same combination practically going into
| an adjoining state and there organizing a new
company under new name but practically
| Tor the same purpose and returning to
New York and through trust company organ.
| lied under the laws Of New Jersey, exchange its
new GER ificates of stock for stock certificates
| or the old company, and then the new company
| establishes itself in the same offices Ia New
| YORK and goes on with It's same business as
| practically the same combination.
THE RECOMMENDATIONS.
As the result OF the committees investiga-
| ton II recommends:
| /. That legislation be had restraining the
formation Of trusts hostile to the interests OF
| the people as they are now formed, or provid-
| ing Tor their formation under the supervision OF
| some existing department of the state govern
ment, or some board to be created by law. and
| to that end your committee will prepare bill.
| q That legislation be had providing that for
| eign corporations doing business In this state
should pay into the treasury of this state when
they commence business therein the same tax
as Is paid by such corporation upon incorporate
| ing in any other state or that such corporations
| be required to pay a tax upon their business
done in this state
8, That all so-called trusts or corporations
| doing business in this state, and which are
| organized out of the state, and hold or own
| stock of other incorporated companies, shall be
| required to keep their books OF account 10 this
state, or true copies thereof, which shall be SUBJ
| ject to examination by the duly qualified ac-
| countants TO be appointed by the attorney
| general of the state whenever he shall desire to
| do so, and at the expense of such trust.
The report is signed 10y the following
members of the committee: George z. Err
win, G. p. Veider. II. j. Coggeshall, @. 8.
Van Gordor. W. L. Brown, Norton Chase
and JaNoh