The Trust Problem in the United States

By Eliot Jones | Go to book overview

CHAPTER VI 1
THE AMERICAN SUGAR REFINING COMPANY

The early history of the sugar trust, touched on in chapter III, may be briefly reviewed. The Sugar Refineries Company--a trustee device--had been organized in 1887. In 1890 this arrangement was declared illegal by the New York courts, and as a result a reorganization was determined upon. In January, 1891, the American Sugar Refining Company was chartered in the state of New Jersey,--then a place of refuge for combinations and trusts. The new company had an authorized capitalization of $50,000,000, half preferred stock and half common.2 The American Sugar Refining Company exchanged its capital stock for the trust certificates of the Sugar Refineries Company, and thus obtained control over the various corporations previously controlled by the trustees. The American Sugar Refining Company next caused the several corporations, seventeen in number, to convey to it their entire property, real and personal; and

____________________
1
On the American Sugar Refining Company see: Original petition in United States v. American Sugar Refining Company et al.; Hearings before the Special Committee of the House on the Investigation of the American Sugar Refining Company, 1911- 1912; House Report no. 3112, 50th Cong., 1st Sess., 1887-1888; Report of Committee on General Laws relative to "Trusts" and "Sugar Trusts," transmitted to the New York Legislature, April 30, 1891; Report of Joint Committee of the Senate and Assembly appointed to investigate trusts, transmitted to the New York State Legislature, March 9, 1897 (Lexow Report); Industrial Commission, vol. I, pp. 43-166, 801-812; 121 New York Reports582-626; 156 U. S. 1-46; Report of the Federal Trade Commission on the Beet Sugar Industry in the United States, May 24, 1917; Annual Reports of the Attorney General of the United States, 1909 ff.; Willett and Gray's Weekly Statistical Sugar Trade Journal; Taussig, Some Aspects of the Tariff Question, Part II (Sugar); Vogt, The Sugar Refining Industry in the United States.
2
Original Petition in United States v. American Sugar Refining Company, p. 47. Referred to hereafter as Original Petition.

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