Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1884-04-11
A BIG MONOPOLY.
THE STANDARD OIL LouMrAsYr rKoBEp
rho Uompsuy's Attorney defending Pat-
terson's Conduct-Gowen'sA Atrsign.
ment OF the Corporation.

b. Gowen against the Standard oil COM
pAny, met in Senator Grady's office,
Philadelphia, Thursday, and listened to
the closing arguments OF Mr.. NJ L. Ohm
stead, Of counsel for tho Standard oil
company, aud Mr.. Gowen. Besides
Senator Grady, the other members OF the
committee present were Senator Herr and
Representatives Walker, Ziegler, Clarke,
MaCReynolds and Graham, + q. Pat
terson, who is charged with having
received bribe of slj, 400 from the
Standard company to suppress certain
testimony in the tax suit instituted against
that corporation by the state, was present
and patiently listened to the dcnuuciatons
of both speakers,
Mr.. Olmstead began by reference to
the purposes for which the committee was
appointed. Ho said that it was conceded
that Mr.. ATchbold, of the Standard com.
pauy, had paid Mr.. Patterson els, 400 for
peace, but not until two months after the
trial Of the tax case and after Mr. Patter-
son had furnished the attorney general
with all the information ho could obtain
against the Standard. Continuing, Mr..
Olmstead said : This sum might seem
large to pay for future peace, but il must
be remem bered that Patterson had shown
great ability to disturb the relations of
this company and to interfere with its
business He had caused its officers to be
arrested Tor criminal conspiracy in a
county where local prejudice ran SO
high that they could not exEeo.
justice. Ho had stirred up litigation
against its auxiliary companies. He had
prompted d congressional Investigation
into their affairs. He bad instigated this
outrageous 50, 900, 600 AK claim, and ,gn
- IN
4 0lny to prompt legislative committee
in an investigation Of the Standard oil
company, and no later than March, 1852,
was striving to create litigation against
two of It's auxiliary companies, by attempt.
ing TO discredtt the returns they had made
20 the states for taxations, Mr.. Arch
bold, had testified tina: he WAS continually
harasSiug the company and disturbing Its
business relations with the people of the
STATE. Senator Emery had said that
irrespective OF the tax case he considered
Mr.. Patterson the Standards ; most danger
Gus lJ2, and that his peace would have
bceu cheap a. ten times the price paid
him
NJ. O.mstead characterized the act as
one Of O!ackmail He thought that Mr.
G1wgu could render the state more real
service by devising sOme plan whereby the
state would receive more than q million
dollars due it by the Philadelphia i Read.
ing railroad company than by pursuing the
Standard oil company. He Concluded by
saying that the conduct OF the Standard
oil company toward the state had been
fair aud honorable, aud chat, however
sincere Mr.. GOweu had been in his
| charges, they were not merely unsupported
| but clearly disproven by the evidence.
In opening his argument, Mr.. GOwen
| inquired why legislative committee
should be compelled to spend a year in
| vestigatiDg a case which should have been
determined in court Of justice. He did
not see wha: good could be ACCOMPLISHED
even after the committee rendered It's re.
port, for unless a criminal suit were begun
within few weeks those who were guilty
Of bribery would be protected by the stat.
ute OF limitations. He said that the
Standard oil company was foreign cor
pOratiOu from Ohio, that had come into
this state and removed millions of dollars
worth OF property from taxation. Ten OF
twelve years ago there were 20, 900 00L
barrels of oil produced in this common
wealth.
1t is now about thirty million barrels
This oil went TO market over several Lines
of railroad. The Pennsylvania carried A
per cent, the New York Central 22t, the
Erie 90. and the Baltimore x Ohio II.
The Pennsylvania charged 81 per barrel
| for transportation TO the general public,
and so or sj cents to the Standard. The
| gross receipts of the railroads in the state
from this traffic were ten or fifteen mil
| lion dollars yearly. This was taxed by the
state in the shape Of tax on dividends, gross
receipts or tonnage. Where is this traffic
-.TF.D N.,N 4 ~
oil. The Standard has taken It away
aud by locating its rehneries in Other
states does no business here except TO buy
oil. THIS is not taxable, nor can good
IN transit be taxed, so tho Standard send
its oil through pipe lines to Ohio anC
New Jersey, and makes it's tax as low a
possible Thus, here is great industry
one Of the greatest In the world, and on,
peculiar TO Pennsylvania, taken out O
the state and all its wealth lost to il.
"liow could 1t be remeded ?" inquire
Senator Grady.
The only way would DO for this com
mittee to recommend law taxing tn
transportation facilities" replied MI
r GOwen.
, Six CT eight gentlemen have made With
a few years fortunes aggregatiug owe
800 OOOOO 600 by the Standard compan
, controlling this industry, aud he submitte
d, that 1t was only fair that the corporatio
! should be compelled to pay its just porto
! of the taxes.
Q Mr.. GOwen then entered upon discus
4 sion OF the merits Of the case a. mad
aims. Mr. ArcAbold Ia speaking of tn
. pout ratsed by Mr.. Olmstead. that Nj
PATTERSON was not a public officer. MI
l Gowen declared that even if Mr. Patter
1 son had not been appointed under a
act ot Assembly the subsequent recon
tlJn Of his connection with the officers {
. the state by legislative enactment clearl
. shows that he was public officer. Furthe
than that, Mr.. Archbold was indictabl
4 under the common law and was punishabl
= by fine and imprisonment.
: Mr.. Gowen then took Mr.. McMurtri
(who appeared as Mr.. Patterson's counsel
A to task for having said that he di
not know anything about criminal Law
y having stopped reading it forty years az,
! - send this case into the criminal court
where it properly belongs, and will volur
teer 70 try it for the state" said NJ
. Gowen. "The admission of the guilt
5 parties themselves will convict them. Hel
IS crime participated in by three peopl,
One confessed the crime, which Is the be,
thing that could be secured TO convict hin
When | went before the House OF Repr,
sentatlVes ! had the confession of NJ
Patterson in my pocket | charged ths
, an othHer of the state had been bribed
and have proved it,"
sTah ROUTE RUBBERs