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the Growth and Con Trol of Trusts

law, senator, sherman, committee, united and george

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TRUSTS, THE GROWTH AND CON TROL OF. Magnitude of the Trusts.— In 1904, 'Moody's Manual of Corporation Statis tics,' 'The Truth about Trusts,' and other cog nate works, stated that there were seven greater industrial trusts in the United States having an aggregate capitalization in stocks and bonds of a par value of $2,662,752,100, and controlling over 1,500 subsidiary plants, and 298 lesser in dustrial combinations with a total capitalization of $4,055,039,433, and controlling over 3,400 sub sidiaries. Adding various reorganized trusts, the aggregate capitalization outstanding in.the hands of the public of 318 important and active industrial trusts at that time was no less than $7,246,342,533, representing in all consolidations of nearly 5,300 distinct p ants, covering practi cally every line of productive industry in the united States. Mr. Moody also gave details of over 1,500 distinct corporations, of which 251 had a capitalization of $6,905,700,000, and 410 had a total floating capital of $20,379,162,511.

ti The United States Steel Corporation, the est of all, with its numerous subsidiaries, rep resented $1,703,168,118 of this aggregate capital ization. Under date of 11 Sept. 1912, Albert H. Walker, author of 'History of the Sherman Law,' in 'President Taft and the Sherman Law,' noted that from the beginning of the Taft administration to that date, among 62 prosecutions begun under the Sherman law, the only cases that developed any hope of a general public benefit were those of the follow ing companies: Standard Oil, American To bacco, Du Pont Powder, Electric Lamp, Stand ard Sanitary, Wire Pool, Sugar Refining, Shoe Machinery, United States Steel, Cash Register and International Harvester. He also gave a list of 50 holding companies that had not been disturbed "in their regular business of violating the Sherman law throughout the administration of President Taft" These holding companies had a capitalization of over $2,300,000,000, and controlled more than 700 subsidiary corpora tions. Further, he declared: "I can furnish a list of more than 950 other industrial holding companies which have an aggregate capitaliza tion of more than five thousand million dol lars, with more than 6,000 subsidiary corpora tions.°

Sherman This act of Congress, originally proposed and outlined by John Sherman, when United States senator from Ohio, was perfected by the Judiciary Committee of the United States Senate, enacted by Congress, and approved by the President on 2 July 1900. That committee comprised Sena tors George F. Edmunds:Ithairman (Vermont), John J. Ingalls (Kansas), George F. Hoar (Massachusetts), James F. Wilson (Iowa), William M. Evarts (New York), James L. Pugh (Alabama), Richard Coke (Texas), George G. Vest (Missouri), and James Z. George (Mississippi). There has since been an animated controversy on the question of the authorship of the law, which has continued to bear Senator Sherman's name. The most prominent discussions were by Senator George F. Hoar, in his 'Autobiography,' Senator John B. Foraker, Albert H. Walker, Francis E. Leupp, in a contribution to The Outlook, and Senator Edmunds, in an analytical contribution, and George Harvey, in an historical 'Fore word,' both in The North American Review (December 1911). Senator Hoar, a year be fore his death, claimed the authorship of the law. Judge Edmunds declared that while the law bears the name of Senator Sherman that gentleman merely introduced a bill of which only the enacting clause, as first drawn, was retained by Congress, and that the law as it now stands was drafted by himself as chairman of the Committee. Further, he stated: °It would be correct to say that nearly every mem ber of the Committee was the author of that bill, for my work in drawing it up was merely putting into logical shape what every member of the Committee had participated in. ° It may here be stated that the precise work of each member of the Committee has now been clearly established by the official records. Also that since the law has practically broken down in its operation, nobody is very particular as to who fathered it.

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