The Globe-republican. [volume] (Dodge City, Kan.) 1889-1910, 1891-05-06
THE GREEDY TRUST.
4 Committee Of the New York Senate
Shows Up the Greed OF tho Sugar 1fust
Enormous DlVidends.

L a VOmUm1B600 Oh tu0 new xOIk 00Doe<
Shows Up the Greed OF the Sugar Tfas
Enormous Dividends.
ALBANY, n. Y, May 1.-The senstx
committee on general laws has submit
ted to the senate q report of 5000
! words on the sugar trust investigation.
After reviewing the testimony taken
the report says:
ut appears uncontradicted that the
trust declared 10 per cent annual divi-
dends at all times during its existence.
not only upon the original capital of all
the constituent corporations, amount
ing to less than $1,000, 900, but also
upon the fabulous valuation placed
upon the stock of such constituent
corporations, amounting to about $780,
600, OOO"
Continuing, the report says: ''It is
plainly seen that the chief purposes of
the trust were to provide for the issue
of these certificates, atfording thereby
opportunity for great speculation in
them. obviously to the advantage of
the persons managing the trust, with
whom was lodged full and accurate in
formation of its plans and condition to
the disadvantage Of the general public,
who were ignorant of the secrets of the
trust, its methods and plans, and of
the actual value of the certifi-
Gates in which they dealt It
may we'll be questioned whether the
trust has not been organized more
for the purpose of the enormous specu-
lations than for the advantages to be
obtained by the combination of refin-
cries in the legitimate refining Of sugar.
That the chief object of the trust was
for the purpose of speculation is quite
plainly shown by the inflated values
placed upon the properties of the con-
stituent corporations upon which the
certificates were issued. Had the aim
been the more economical and profit
able refining of sugar this result would
have been obtained without any in
crease of the capitalization of the
properties of the constituent corpora
tons"
The report then takes up the refusal
of the trust officials to produce the
books of the concern and says: 'Why
were not the books produced? Repeat
ed demands wero made for them. Did
they contain transactions and informa-
ton that would show to the people that
they were using their combination for
illegal and unlawful purposes? These
are questions that the people must de-
terminc for themselves"
The report then questions whether
these enormous dividends have been
earned in legitimate refining of sugar
and calls attention to the widespread
speculation in the securities of the con-
Germ. "As result of your committees
investigation it would recommend:
':First-That legislation be had re-
straining the forming of trusts as hos
tile to the interests Of the people as
they are now formed, or providing for
their formation under the supervision
of some existing department of the
state government. or some board to DO
created by law. and to that end your
committee will prepare a bill.
''Second-That legislation be had
providing that foreign corporations
doing business in this state should pay
into the treasury of this state when
they commence business therein the
same tax that is paid by such corpora
tons upon incorporation in any other
state, or that such corporations be re-
quired to pay tax upon the business
done in this state.
''Third-That all so-called trusts and
corporations doing business in this
state and which are organized ont of
the state and own or hold stock of
other Incorporated companies shall be
required to keep their books of account
in this state or true copies thereof,
which shall be subject to examination"