Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-05-01
TRUST METHODS.
,,ssssrINe oIscLos Tres MADE ey
NA NEW YORK COMMITTEE.
Ill. Of an Investigation Into the
NAV. that are DARK" Of One OF the
bic Combines.
NY telegraph 20 the Dispatch.l

Icy n. Y, April SO.--The Senate
,-oi;tee on Generel Laws submitted 10
','.S(nate this morning report of 5,000
81, ~, ,he Sugar Trust investigation. After
t'''..,,s tho testimony taken the report says
f','....srs unoontradictcd that tho trust de-
IN nor cent. annual dividends AT all times
c''.' IA existence. not only upon the original
e- . AL tho constituent corporations
c..,,,s 70 less than 100000 bu, also
t'' 80, fabulous valuation placed upon the
rn - sorh constituent corporations, amount.
&c. .b,yf SSQ,O00,0oO. very important
t+ N no INVESTIGATION related 20 tho dcciara.
T"g ibeef dividends ny she trnst and the pro-
-. by tho constituent corporations, ont OF
o. 49, dividends could be lcgitimately paid,
rHosr,rtory information could be obtained or
~, frdp che officers or employees Of the
..-,rt corporations respecting the amount
r,,Gts A. such the corporation had made. =.
7nH eoOKS REMOVED.
-.-.,r, saws that the hooks Of the corpora
pr. r,.1sine the trIst wore removed 20 Jersey
~. ..f.gs ~ the commencement Of the hives
q CN ,6 ouitc likely IN anticipation az a..
f..t me- hooks the information respecting
n...-.t ana It's inside workings was wholly tn
~ '-ri 4, enable your committee 20 determine
si7.4 g,aeo ~ the trust, and also whether
Q ...9rn millions paid In two and one-halI
% 4. dividends upon an inflated capital Of
10 adv million dollars was legitimate and
t-..frv earned or not
"a ppr.fetent refusal 20 produce said
pr I'd at,ount was wholly unwhrrantcd and
t.fahls. and the committee admit that
..f.-sl under great disadvantage In fiud.
t he trust had carried out OF tho State
...s ahi-h 10 sought 20 examine. There IL
a. believe that the persons who organized
Co. sugar Trust, and Incorporated the same
i-,re laws Of the State 81 New Jersey, did sc
t...ra ,ilc rirors Of New York laws In several
rsrr.l--;
rr,,Ays FOR APPLICATION TO JERsKY.
e. To escape taxation under the laws Of this
So. .-lc- thclaws OF New Jersey the company
.sr common and preferred stock, which
...rrrt Dc done In New York.
o-'' ir4.r mo laws Of New Jersey the new com.
Ind hold aud own tho stock Of other com
. Domestic or foreign, without restriction
'.tr5 the committee finds from the Testimony
~. us,smrycr that the American Sugar-R Is.
-. ,rurauy paid a tax OF about Gil 900
49, = -rr1uifCi under the laws Of New York
go tlyII have been about S62, 500.
IN. t1tt1n-Seed OIL Company was incorpo
rrsr- the laws ~ Now Jersey, and paid Q
r.l..rt $4,000, while Ia New York state
.. .sy would have been about 100000, and
.-s|-g % the testimony OF Tax Commissioner
..-rr. ~ New York, many millions OF capital
...-. /. ori' OF New York into New Jersey each
-..r,. f.erq corporations which, In the natural
.-.rr,frurs, should have formed the capita
rs.lar corporations here.
sERIoUs MATTER.
-rsts. in The Judgment OF the committee, be
- RI serious matter 90 the people OF this
IT, mo ,,7sa Of the Sugar Trust we find
b.. sugar Eernerios Company or Trust In thit
..... declared % be unlawful by the highest
..t-f ono state. Then We witness the bold
.-.s.ls Of the same combination practically
.-,ia.r an adjoining State and there organ
r-srgu company under a new name, but prac
,.rg f- tha same purpose, and returning x
ia-e. AMI through a trust company organ.
..rHnf.r the lsWs Of Now York, exchanging it,
..a .rr.acatcs Of stock FOR the stock certificates
sr...I company, and then the new company
.....--.ac itsclf in the same onices IN New
F-. saI going ON with It's same business, prac
-agytu same continuation
RECOMMENDATIONS.
t.ers,~l' Of the committees investigation Il
81 Ina. legislation be had restraining tho for
..-a NJ trusts, a. hostile 20 the interests OF the
...rrs q. hoy are now formed, or providing foi
.-.- formation under the supervision OF some
.-s..r. department Of the State government OF
.... r...rI 90 be created by law, and 20 that end
committee viii prepare bill.
10 That legislation be had providing that
f-..-r eUruuratiJus doing business in this state
..Ii nav INTO the Treasury OF this State, when
-.s commence business therein, the same tax
q. /. rad rs such corporation upon incorpo-
rs..rg Iu any other State or that such corpora
a.1. Doe required D. pay tax upon their bust
Ia.- done iu this state.
g. That all sd-callcd trusts or corporations
ding business IN this State and which are or
..r,saI cut If the State and hold or own the
a.E ~ other incorporated companies, shall be
r....-"i 90 keep their books Of account in this
S,r'e ur true copies thereof which shall be sub
.... On examination by duly qualified account.
sr,, 90 De appointed by the Attorney General Of
ra state whenever ha shall desire 10 do so and
affle expense of sGrn trust
Tho report Is signed by the following members
o. tle committee: George z. Erwin, c. p. We'd
rer. HI U.r.--laU. G.. :. Van Gorder, W. l.
ErUu, Norton Chase, and Jacob A. Cantor.