The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-02-18

ard the most vulnerable OF all the trusts
In America. The charter provisions which
have made this giant trust possible are
now shown for the first time. they have
never been even suspected by persons not
Immediately concerned In the deal. The
reasons why the new trust VIII have
stormy and possibly very brief exist
ence are also shown.
BY the charters of most of the com7a-
mics in the trust a combination could not
be made. Minority stockholders could pre-
vent its contamination Therefore each
one OF the companies, foreseeing many
months ago the present combination, put
I'm Its charter provision giving 10 its
board OF directors power TO sell the whole.
provided that all shared alike.
most ingenious provision IN the CHAR
ter OF the new biliion-Gollar steel trust
Is as follows: THE company may cause
or permit the title of any property or bus
mess acquired to be or remain III the name
Of any Individual or of any other COM
pany and managed for this company, or
this company may take over and carry
On the business of any other company or
companies either by acquiring the snares
pf stock or any other securities controlled
by mortgage or otherwise, and thus eXer-
rise all the powers OF holders OF the shares
Of stock thereof, manage It's affairs. cleo
It's officers and hold It's control and as
well receive and distribute as profits the
dividends interests case may be.
on such stock or security as DIVIDENDS on
the stock OF this company"
There $1,000 individual stockholders IN
FEDERAL Steel alone. Any OF the other COM
panies except the Carnegie have almost as
many individual stockholders. To weld all
these units into one structure Is task Tor
giant giant ,,s,,.no.. w,u ,sra 20 d,s,nterrate
TIE biilion-dollar trust? 1t will be attacked
by the government. a bill has been already
Introduced by Republicans IN Congress
taking off the protection tariff on iron ana
steel because that manufacture Is no
longer an infant industry. Foreign gov
ernments may discriminate against the
tsust by means of a prohibition export
tariff, such as that which Russia now
lcvses on American sugar Each state N
which one OF the companies composing
the trust maintains an iron Eili Will en-
dezvor TO tax the whole billion-dollar trust
through that company-tax the whole BODY.
though only one leg Is in that state Bear
raids In the stock market will also make
life difficult for the new billion-dolla-
giant.
Is the bilIion-doilar trust .structurally
weak? Is IL too big TO be handled? A
steamship 600 feet long goes across the At
lantic with speed and profI 10 the owners,
bit what would be the fate OF a steam
slir 5000 feet or $1,000 feet long. built on
no stronger lines than the ship OF tOO feet I.
Seventy-fve million dollars represents
three cash payments made In less than ono
month by the firm of j. p. Morgan * Co.
ture was deposited i'm the First National
Psnk yesterday 1t called for S23,121 Ol6.6l.
IL connection with the acquisition or a
csntrolling interest In the central Rail-
read of New Jersey.
The payment to Andrew Carnegie OF S25,-
coc.0cG In connection with the big steel deal
believed to have been made. but which
has not appeared in the clearing house re-
turns, was another of Mr.. Morgan's mon
ster payments.
paid out $25. 100000 in connection with the
acquisition of the Pennsylvania Coal Com
pany- These are the largest deals ever re-
rerted as occurring within such short
space OF time and Wall street believes all
things possible with the Morgan backing.