The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-10-06
what Are Trusts?


ing a great cutlery over the remark at
tributed TO Senator Hanna. that there
are no such things in existence In the
United States as trusts Yet, In the
sense in which the word trust" was
used. up to within a very recent period,
the statement was literally and abso-
lutely true
The original trusts were combinations
Of corporations. formed for the purpose
of operating different plants under one
management. marketing the product at
an agreed price. and dividing the net
proceeds OF the operation OF all OF the
plants among the corporate members
OF the trust In fixed ratio; without re-
gard to the actual earnings Of any one
OF the corporations, and notwithstand-
ing the fact that some of the plants
may have been idle during the period.
In these trusts each corporation pre-
served its separate existence. The
trust was a corporation, in some cases.
I'm others mere partnership The Pc
culiarity OF II was that the stockhold-
ers, or the partners, as the case might
be, We're Individual corporations.
1t is pretty certain that trusts OF this
character We're obnoxious to the COM
mon law against combinations in re-
straint of trade. At all events. they
were easily reached by such laws as
the Sherman antitrust law, the en-
forcement OF which has resulted In alb
solutely destroying trusts OF this char
acter. They have been succeeded by
other huge combinations of capital
which were styled In current speech
trusts" but which have been formed
with the express purpose OF avoiding
all antitrust laws. and to render 1t ex-
tremely difficult 10 frame any statute
which would limit their operations
without at the same time inturing or
binary and legitimate corporations.
The so-called trust of today differs,
under the law. In no respect from any
other corporation. The combinations of
several existing plants into one So
called trust" IL now formed by the
actual sale OF the plant and good will
Of each OF the smaller corporations to
the larger one. the small corporations
thereupon going out OF business and out
OF existence. In legal effect the new
corporation Is not a combination of cor
porations, but simply a single corpora
ton. with Individual stockholders II
Ia net obnoxious TO the provisions OF
the sherman antitrust law. and II is
not properly 10 he called trust" In
| the sense In which that term was orig
inalfy used. although II il now so styled
in common parlance, so Senator Hanna
was absolutely within the truth when
he stated that there we're no trusts In
existence, within the meaning OF the
Z antitrust laws
This new system OF organizing great
I combinations, which are now simply
domestic corporations OF the states
which issue 90 them charters. or permits
TO DO business. has tied the hands OF
/ the national government in any attempt
( 10 regulate them. Mr.. Bryan recognize
ed how the congress Ind been bound in
+ this matter when IN a speech before the
/ Chicago antitrust conference some
months ago he said; II am In favor OF
an amendment 20 the constitution that
VIII give 10 congress power 20 destroy
I every trust In the country" The Re.
puhlicans in the last congress also rec
ognixed the necessity 81 giving congress
I fau power 10 deal with the subject, and
I 20 that end the house judiciary COM
mi,fee reported a constitut onal amend.
{ meni loaging IN congress the power 20
define, regulate, control. prohibit, or
dissolve trusts, usonopoiles or conhsna-
{ tons" on the roll cali on the question
+ q submitting ths constitutional
amendment to the various states for
/ ratification. the vote stood:
Rsp1h}ica rs-~FoF, ita, against, 4
+ Democrats ard Poppiisss- FOR 8:
against. ia
Failing % secure the necessary two
thirds vote the Amendment was lost.
The simple truth q the matter Is tia,
the Democrats IA congress ala not wan,
anything accomplished in the direction
/ 81 giving congress power 70 deal with
the rev combinations % capital. BE-
cause they wanted the trust Issue FOR
use In the campaign. Besides. they ala
{ not desire 20 hurt the8r friends. the
cTuSers. loneses Hearxss. Valentines.
palys C5arks, Havemeyers and 9TH
grs % the trust naFnates who are son.
tribuiing 20 the Democratic campaign
fund this year IN gratitude fer past Ia
( vors and with lively anticipation Of