Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-05-01
SUGAR TRUST.
SHOWED UP FRAUD IN NEW
YORK LEGISLATURE.
The Chief Object of the Trust Speculation
in Certificates Issued Upon Fab
ulous Capitalization.

ALBAST, y. Y, April 30.-The senate
committee on general laws submitted to the
senate this morning o report of $4,000
| words on the sugar trust investigation.
After reviewing the testimony taken the
report says: 1T appears uncontradiLted
| that the trust declared 10 per cent
| annual dividends at all times during
| its existence, not only on the original
| capital of all the constituent proper
! ties amounting TO more than s., 100000, but
| also upon the fabulous valuation placed
| upon the stock of such constituent corpora
| tions amounting 10 about $50, 100000" Con-
tlnulng the report says lit is plainly seen
| that the chief purposes of the trust were TO
provide for the issue of these certificates
afordlng thereby opportunity for great
speculations in them obviously 10 the advan-
tage of persons managing the
trust with whom was lodged
fuli and accurate information
of its plans and condition TO the disadVan-
tage OF the great public, who We're ignorant
OF the secrets OF the trust, its methods and
plans, and of the actual value of the certifi
Gates in which they deal. II may well be
questioned whether the trust has not or
ganized more for the purpose OF enormous
Speculations than for the advantages to he
obtained by 4 combination of refineries
ia 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 constituent corpora
tons upon which the certificates We're is
sued. Had the same been wholly for the
more economical and profitable refining OF
sugar, this result would have been Oh
tanned without any increase OF capitaliza-
lion of the properties of the constituent
corporations
The report then takes up the refusal of
the trust officials to produce the books Of
the concern, and says: Why We're not the
books produced? Repeated demands were
made for them. Did they contain transac-
tons and information that would show to
the people that they We're using their com
6ination for illegal and unlawful purposes!
These are questions that the people must
determine for themselves. -
The report then questions whether these
enormous dividends have been earned in
the legitimate refining of sugar and calls
attention 10 the widespread speculation in
the securities OF the concern. As result
Of your committees investigation it would
recommend:
l. That legislation be had restraining the
forming OF trusts as hostile 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 be
created by law, and TO that end your COM
mittee will prepare a bill.
.. 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 as is paid by such corporation
upon incorporating in any other state, or
that such corporations be required
TO pay tax upon their business
done in this state
g. That also trust corporations doing bust
ness in this state, and which are organized
out of the state, and the holder or owner of
stock of other corporated companies
shall be required to keep the
books of account in this state or true
copies thereof, which shall he subject to
examination by duly qualified accountants
to be appointed by the encouragement of
the state whenever he shall desire to do so,
at the expense of such trust.