National Linseed Oil Trust
| Company type | Corporate trust |
|---|---|
| Industry | Linseed oil production |
| Founded | 1887 |
| Defunct | 1920 |
| Headquarters | St. Louis , United States |
| Products | Linseed oil (flax seed oil) |
The National Linseed Oil Trust, based in St. Louis, Missouri, was a prominent corporate trust established in 1887 to safeguard the interests related to linseed oil within the United States. Commonly referred to as flax seed oil, linseed oil has been extensively utilized in painting applications. The Trust ceased operations in 1920 following legal action by the U.S. Department of Justice, which accused it of breaching the Sherman Antitrust Act. Among its notable board members was Omaha magnate Clark Woodman.
History
Frequently regarded as a counterpart to the Standard Oil Company, the Linseed Oil Trust operated alongside similar entities such as the Cotton Oil Trust, the Lead Smeltering Trust, and the Whiskey Trust. Initially chartered in Illinois under the name The National Linseed Oil Trust in January 1887, it underwent a name change to the National Linseed Oil Company in 1890 due to public criticism. By 1898, the Trust's assets exceeded liabilities by $6 million. One of its early founders remarked that the organization was originally formed to serve the social interests of its members.
After unsuccessful speculation involving flaxseed—the essential raw material for producing linseed oil—the company’s capital dramatically declined from $18 million to $720,000 between August and September of 1898. Subsequently, it was reorganized as the American Linseed Oil Company, incorporated in New Jersey with a capitalization of $33.5 million and control over 60 linseed oil manufacturing plants across the country. Initially supported by Standard Oil through a substantial stock acquisition, control eventually shifted to Rockefeller-affiliated interests.
Lawsuit
The U.S. Department of Justice filed a lawsuit against the Trust for infringing upon the Sherman Antitrust Act, naming additional defendants such as National Lead Company, Archer-Daniels Manufacturing Company, William O. Goodrich Company, and Sherwin-Williams Company. The complaint asserted that these firms conspired to inflate prices, highlighting an increase in linseed oil prices from $0.50 to $1.80 per gallon during the period from 1916 to 1918.