New-York tribune., 1908-11-29
THE TRUST AGREEMENT
1PCHBOLD TO EXPLAIN.
rombiuation of 1882 Up at Standard
OIL Hearing Tomorrow.

-. t-;,st agreement OF the Standard Oil Com
- ~ ohio. and Of which the Standard OF New
- Is said by the government 70 be practically
-. heir vas made in fSS. at Cleveland. and to
--oz John D Archhold. the vice-iiresident OF
= -o-,ps-v viii testify FOR his company regard
= II fhe details Of that agreement. II is ex-
- ~ TIE government that this phase OF the
-. xii be of vital interest 70 its case II was
-. agreement which caused the Supreme Court
= os.o 20 dissolve the trust in 1897
~. government. in the suit now in progress at
,hs ,-ustorn Fouss says that the dissolution was
s.,s Until 1921 compelling the Supreme Court Of
-. stat. OF Ohio bring contempt proceedings in
.,.- v.z- which lei the Standard OF Company to
go the New Jersey company. The case hinges
:, whether the company continued its trust prac-
,,-.e i restraint Of trade
There were ttirty--ine companies included IN the
So Agreement the business OF which was managed
r -ne trustees II is charged that these nine trus
.... rave beer replaced by the officers, including
-. directors of the Standard OIL Company of New
80 Now, instead OF thirty-nine companies
- ne hundred snd twenty included in the
srs75z-d interests The original nine trustees
=. rorn . Rockefeller. John .. Archboid Will
t. RooketeIe-. O H Payne. J A Bostvick II
n =5ssle- X Q. Warden. Charles Pratt and Ben
,.-.- brewster. The following paragraph in the
Agreement shows the power possessed by the
trusees-
III. Understood and agreed that the said tr1,s-
- -sv ufr- auy trust funds in their he nds
ru-chase the bonds and stocks Of other
s-5s1 = TIE BUSINESS Of the Standard OIL Com
---5sr such terms and in such modes a thev
p sA.r advisable. and shall hold the same for
Esy 80 - ne owners Of said trust certificates
s1t nsv sell assign. transfer and pledge such
H175s and stocks The1ever they may deem il ad-
-s-rszeaus 20 said trust 70 do So
49, -, ,s--s or the agreement were that
-. s-ooks s-d bonds Of other corporations held
- -. r-ust-es could be BY them exchanged sold
60 re proceeds distributed PRO rata 10 the hold
= % -. --7-s4 certificates. held and reinvested
g. -. -u-oo.es s-o OF the trust with The
,-,z,sso- ,hat TIE trustees might from time 70
g.. sssir- the stock Of the Standard might be
,.o-xss-v 70 ouslity sny person or persons chosen
% ~ chosen ss directors OF any OF the Standard
OF companies Is 70 actual governing powers,
TIE following clause covered the ground;
T shsn ~ th- duty q the said trustees 10 exer-
several Standard OIL companies and. far prae-
5S &C. q bozs stock = beiS m sad trsf It
shall D tleir duty, as stockhoice1s of said com
ps-ies- % elect as directors and officers thereof
'zfchfuI ard competent men They nav elect them
selves 70 such positions when they see IT 50 70 DO
companies managed snd directed II the manner
ssts q th- hoide-E Of said Trlst certificates,
TIE trustees -e-- empowered 70 employ and pay
g. TIE agents whom they deemed necessary in
the management of the r-1sr and each trustee re-
cstv@5 z SALARY q s25.6n year. and the president
@ -h= board S7osn The agreement provided for
q Standard. n the states o. The Union. and fur
-he- that Al rhe business II each state 70 be
transferred II The company fl that state. Those
rho signed ths agreement as individuals agreed TO
EsslE- their holdings in other companies 10 the
Standard OIL Company II the state where the prop
e--v situated and 20 receive II return stock
O -1= company. This stock was 70 be in
shares = pa- value Of ina same amount as the
APPRAISED valuation Of the property transferred Il
consideration q any stock delivered to the trus-
h- those interested II companies Of the Stand
at trust certificates were 70 be given equal az par
Tzl1e . The Par value of the stocks Of the sew
era Standard Oh companies.
Ehe holders of the trust certificates elected the
t-us7=es Al annual meeting in this city. In
svs-y way the agreement bound the companies and
Individuals interested but there was everv provi-
sion for The guarding OF all against loss As seen.
change &, the control Of stock could not mean
change q management unless the transfer should
= eno-uous II the trust certificates were the
P-o~-sioas which the holders agreed 10 before &C
ceptzrcs Al the powers q the trustees were ex-
e-cse6 5y the majority. and in addition the board
vas empowered 70 appoint executive and other
cor7---rees, majority II each 10 exercise all the
powers conferred by the board upon any commit
- A. ne rules pertaining the management
@ the trust were 70 Be made by the trustees
= vas provided in the agreement that the trust
should exist during the lifetime Of the survivors
and survivor % The trustees. and for rzenty-one
yeas z<rer that, Unless the end Of zen years
rTo-tl--1s q ali the holders in value. or a. the
e1c q o1e year p Per Of al the holders
r value. - trust certificates should a meeting
he'd e. thar purpose vote 10 terminate the trust
r Tss Just ten years later that the trust was
c-sso-Ted TihoUt the consent Of any Of the hold
"a - certificates by the Supreme Court Of Ohio
t7s-e 7-=-e forrv-siE individual siguers Of the
sEree0enr- tor sixteen OF whom H NJ FagIer
sr-@o - attorney The name OF John .. Rookie
te-=r Tas thirtieth and Archbold's was the second