The National Linseed Oil Trust of

St. Louis, Missouri St. Louis () is the second-largest city in Missouri, United States. It sits near the confluence of the Mississippi River, Mississippi and the Missouri Rivers. In 2020, the city proper had a population of 301,578, while the Greater St. Louis, ...

, was a major company trust formed in 1887 to protect

linseed oil Linseed oil, also known as flaxseed oil or flax oil (in its edible form), is a colourless to yellowish oil obtained from the dried, ripened seeds of the flax plant (''Linum usitatissimum''). The oil is obtained by pressing, sometimes followed by ...

interests in the United States. Once used extensively in painting, the oil today is also commonly known as ''flax seed oil''. The Trust was dissolved in 1920 after the

U.S. Department of Justice The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United State ...

charged they broke the

Sherman Antitrust Act The Sherman Antitrust Act of 1890 (, ) is a United States antitrust law which prescribes the rule of free competition among those engaged in commerce. It was passed by Congress and is named for Senator John Sherman, its principal author. Th ...

."Sues to dissolve Trust"
''New York Times.'' July 1, 1920. Retrieved 1/24/08. Omaha millionaire Clark Woodman was an influential director on the board.

History

Viewed today as one of many imitators of the

Standard Oil Company Standard Oil Company, Inc., was an American oil production, transportation, refining, and marketing company that operated from 1870 to 1911. At its height, Standard Oil was the largest petroleum company in the world, and its success made its co-f ...

, the Linseed Oil Trust's peers included the Cotton Oil Trust, the Lead Smeltering Trust and the

Whiskey Trust Whisky or whiskey is a type of distilled alcoholic beverage made from fermented grain mash. Various grains (which may be malted) are used for different varieties, including barley, corn, rye, and wheat. Whisky is typically aged in wooden cas ...

. The trust was chartered in Illinois as The National Linseed Oil Trust in January 1887. In 1890, due to negative public pressure, the name was changed to the National Linseed Oil Company. At a peak in 1898, the Trust held $6,000,000 in assets over liabilities. An early report by one of the founders stated that the Trust was initially founded for the social benefit of the members. After a period of failed speculation in flaxseed (the raw material used in the creation of linseed oil), and between August and September 1898, the capital of the company dropped from a high of $18,000,000 to $720,000. The company was rolled into a new trust, the American Linseed Oil Company. The new company was incorporated in New Jersey with a capitalization of $33,500,000 and the acquisition of 60 linseed oil factories in the country. American Linseed Oil was initially backed by a large purchase of stock from Standard Oil which increased its share of the company until Rockefeller interests controlled the trust.

Lawsuit

The US Department of Justice brought suit against the Trust for violating the Sherman Antitrust Act. Several co-defendants were named, including the

National Lead Company NL Industries (), formerly known as the National Lead Company, is a lead smelting company currently based in Houston, Texas. National Lead was one of the 12 original stocks included in the Dow Jones Industrial Average at the time of its creation on ...

Archer-Daniels The Archer-Daniels-Midland Company, commonly known as ADM, is an American multinational food processing and commodities trading corporation founded in 1902 and headquartered in Chicago, Illinois. The company operates more than 270 plants and 42 ...

Manufacturing Company, William O. Goodrich Company and the

Sherwin-Williams Company Sherwin-Williams Company is an American Cleveland, Ohio–based company in the paint and coating manufacturing industry. The company primarily engages in the manufacture, distribution, and sale of paints, coatings, floorcoverings, and related ...

. The suit alleged all of these companies were acting in

collusion Collusion is a deceitful agreement or secret cooperation between two or more parties to limit open competition by deceiving, misleading or defrauding others of their legal right. Collusion is not always considered illegal. It can be used to att ...

to raise prices, citing a spike in linseed oil costs between 1916 and 1918, when the price rose from $.50 per gallon to $1.80.

References

{{reflist Former monopolies American companies established in 1885 Companies based in St. Louis Flax American companies disestablished in 1920