The Black Hills union and western stock review. [volume] (Rapid City, S.D.) 1904-19??, 1905-02-03
RAPID CITY SOUTH DAKOTA, FRIDAY FEBRUARY, ; 1905
Lawson on Trusts.

Thomas w. Lawson in rybody's Magazine for Febru-
airy, gives interesting description OF the trusts Mr. Law
says 1.-The trust may also be defined key
the peoples financial structure which enables its
enter all of the seperae institutions have mentioned
and combine any all of without affecting their respec-
tive organisms into organization which posses the po-
cnces and the privileges of EACH but unhampered by the
legal restrictions of Of them Like electricity, the
exact of trust does not admit of rigid definition
lit force which only be exered in
ca organisms which JONES and yet releases adds
to and exmps from Let suppose that
made into trusthis human combine becomes
once free from the bondage of matter and
of the back of it's heads and passes in and through solid
walls 1t has all the combined strength and that the
two ad and all their privileges and possessions but
evades natures laws to individuals and the laws of
both to individuals and other material things To pat the
description in still another way trust is aninsutiou which
endows itself with the right any all of the people
the people them but made that its derives from
the institutions the benefits the people intended for themselves
and immune from the legal consequences of appopat-
ing such benefits. Two make trust by
|buing-acqurng the control ofan insurance company,
savings bank The organization is
all of these institutions performs the functions of Of then
yet legally do with their incomes capital and SURPRISES
things which from the very of eachnone of
sutons allowed to dohe organization all of these
institutions until the law attempts bring to book then
evae being Of them The trust company is empowered
to lend money speculative which insurance
company and bank not do trust lends the
insurance vast end the saving banks
dous loss and immunity from the consequences which
should follow such dsobedence of the law Moreover
the trust company shows profit the trust approprates it,
and when tremendous loss sustained the
the savings bank must bear it, An illustrations "A, and
G form trust and are president and controller of
savings bank and insurance company respectively They
organize company with 900 900 capital which the
insurance company furnishes the orty they then elect
president and controller of the company make him
their associate dummy. The trust company receives
900 of the peoples money deposit The insurance
company deposits 900 of its surplus funds the
savings bank 600 The trust then purchases for
the stock of individual corporation 1t
the 600 and additional S. 600 which represents
Its first profit from the trust company through irrespo
sble dummies deposting the industrial stock collateral
trust next the trust company issue bouds for
$l50OOOOo These bonds based upon and secured by
nothing OF worth but the stock The trust company offers
these bonds for sale The company bnys 900
the bonds and the trust through dummies the
other S70O0000 BY the operation far the trust
profit of $40 900 Upon making this profit and
wcrth OF the bonds becoming these back to the
original worth Of the stock upon which they based
OO0 and there the tremendous loss of $4,000 600
trust bus aud there loss to its depostor Of
900. This loss is divided follows Three million
three hundred and thousand dollars savings
bank 49, 600 the company $4,000 dir
to the people, less the small which will be
cred from the stock holders These be effected in
nnimportant by the 81 O0o 600 original captal)
the trust has done nothing for which
bic for it be held cv crminay liable Neither has
the insurance company the savings bank
and there had been trust any one of the three
had made the loss directly through actions
the officers CT that Institution would have civly and
perhaps crmnally, held reponsible
The utility and convenience of the trust having been de-
became popular nancers de-
string to accomplish all manner illegal purposes. Especially
an apt tool for the System which perfectnp
its control Of the peoples Institutions RAILROADS
running through the territory nng cumbersome and
restrictions with Which the community they served
had safeguarded its interests formed Straghtway
there valuable combination
from the regulations which its individual members
competition was eliminated and rates raised AS time
went trust disabilities discovered and other
ds Srs 81. -