Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1909-11-20

! conveyed their interest On the stock and
business OF this concern to George IA.
/ Villas. NJ. r. Keith and George +. Ches-
/ ter IN trust TO hold and manage them
Tor and 10 divide and distribute them
I among the 81 stockholders of the stan
! dard ON company in proportion to their
respective holdings OF the stock Of chat
company The trustees, however DID
not divide or distribute through the
operated rehneries ana the companies
which they held under this deed aud
with their earnings purchased other
property and the stock OF other COM
panies until in 1882. they held in this
trust property worth more than t55,
000,0cO."
TRUST or 1859.
The court here refers TO the trust
formed In 1882. TO the effect that all
the stocks they owned In the Standard
OH company OF Ohio and in all other
corporations and limited parts engaged
IN the oil business were conveyed TO
nine trustees during their lives and the
life Of the survivor OF them and for q
years thereafter unless the trust was
sooner dissolved by vote Of the share
holders"
The opinion says
Six 81 the Individual defendants
were six Of the nine trustees and these
trustees issued for the stocks the title
To which was thus conveyed TO them.
trust certificates OF the par value OF
100000 GOO and between 1882 and March
~ 1892 additional certificates Of the
par value OF s27 $50 900. so that on the
latter day there were outstanding Ger
tificates for 9I2.500 shares in the trust"
The opinion thcn refers 10 the oustlng
OF the company from Ohio I'm 1882 and
then March o. 1892. the trust sgree-
ment was terminated and the stock
transferred TO the standard oil conf
pany Of New Jersey and other compan-
les so that they retained the stoclss
OF The 20 principal companies and these
20 companies held the stocks i'm the g.
other companies.
There were outstanding trust certin-
Gates for 90. 800 shares In this trust
and the owners OF these certificates
90 We're the equitable owners OF the
stocks IN all these companies
METHOD OF DIVISION.
The method or division and dlstribu-
tion OF these stocks adopted By the
trustees is described in the opinion ana
the court continues:
Bat the receipt by the assignee u
this share OF the stock OF any one Of
these companies was conditioned by
terms OF the assignment upon his ac-
cepting his share OF the stock of all of
them. This method Of distribution ap-
pears to have deferred many Of the
holders OF trust certificates from sur
rendering them and accepting their
shares OF the stocks. The Individual
defendants. however and their more
intimate associates surrendered thor
trust certificates and took such shares
OF the stock TO aggregate to stock Of
each OF the 20 companies and secured
TO themselves the control and manage
ment OF al the companies In that way
until the year 1889
In that year. the defendant. the
Standard oil company OF New Jersey.
a corporation. was one % the 20 conf
panies The par value OF its capital
stock was $4,000, coo Its charter Was
so amended that Il was empowered to
do all kinds OF mining. manufacturing
trading and transportation business. 20
acquire, hold, vote. sell. and assign
shares or capital stock and to carry on
its business IN all parts OF the world
Its capital stock was increased to
500 goo, and the stocks OF the other
10 companies We're exchanged for the
stock OF the STANDARD oil company Of
New Jersey 80 that the latter company
succeeded 20 the legal right TO the ma
jorits OF the stock OF the 10 companies
and thereby to the management and
control Of these companies and OF all
the companies which they controlled
fHfItioIf III tnts uttl~lol the STANDARD
oil company OF New Jersey win be
called the principal company and the
companies II then and thereafter con
trolled the subsidiary companies.
BUSINESS MANAGEMENT.
Between 1899 and the hlng Of tho
bill In this case in November. 1905. the
affairs OF the principal company and
the subsidiary companies have been
by the former as the business
of single person. Subsidiary compa-
MES have come and gone at it's bidding.
but IL still holds the control of more
than 30 Of the chief companies, whose
was committed TO il IN
1899. The par value OF the capital stock
Of these companies in 1899 was about
800, 100000. In 1903 Il was more than
$50 600 600