The morning news., 1892-03-07
Tho Vzhirkv Trust Gases.


The prosecution Of the "whisky trust
cases in the federal courts at Boston, re-
ports Of which are being made almost daily
in the press dispatches, is the FIRST serious
effort Of the United States government au-
I thorities 20 test the Sherman antitrust act
as a means Of suppressing conspiracies in
trade. AS it has been alleged that one pur-
pose of the prosecutions IS to create capital
for the present administration, a brief stale
ment Of what the charges against the trust
are and what the monopoly is will be of in
terest.
| Originally the "trust" was q combination
Of the owners Of various distilleries in an
agreement to prevent 'cut-throat" compe-
tition. There was no investment Of money,
and the function Of the combine was to
control the output and price Of whisky.
mem bers Of the combination agreeing to
| shut down their plants when it was deemed
advisable to do 80, and were to receive COM
pensation for the time so lost. Several large
establishments refused to 60 into
the pool, and is was finally deemed
necessary to acquire control of such
distilleries by purchase, If 1t could not be
done otherwise. For this purpose joint
stock company was formed among the
owners in the pool, aud the great Shufeldt
distillery was the concerns first purchase.
This company under the name Of the Cat
tie Feeding and Distilling Company, is
chartered under the laws Of Illinois, and
has headquarters at Peoria, from which
center the operations of the concern are
directed
Since its organization the company, by
lease or purchase. has secured control of
some seventy-odd distilleries and rectify-
ing establishments in various portions Of
the country. These plants produce about
IS per cent. of the whisky output Of the
country, consequently 1t is in the company's
power TO make terms and prices, to deter
mine the amount of the output and to sup
press all competition within its territory.
But it is claimed that all of this is done with
strict observance of legal methods
The attorneys Of the company claim that,
so far from being Combination" in trade
within the meaning Of the Sherman law,
the Cattle Feeding and Distilling Company
| is joint stock company Incorporated in
strict accordance with uhe Illinois law, and
insist that it is impossible for joint stock
company to combine with itself in order to
create trust. II the state Of Illinois be
| competent TO create this corporation, they
say. how can it be reached By penal law
| Of congresss
One Of the chief points Of attack In the
Boston case, which is regarded as sufficient
to bring the matter under the Sherman act,
is the trusts drawback system. instituted
for the purpose of gripping or freezing
out" opposition. Under the system the
trust gives to every customer rebate of
cents per gallon, payable in six months, pro-
vided that the customer shall IN the mean
time buy all Of his whisky from the trust
and shall sell for price not less than that
fixed by the company. Any violation of
this agreement is punished by erasing the
name of the offender from the list OF the
concerns customers On this point the
prosecutors of the cases hope to prove con.
| spiracy and tyranny.