The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1886-03-05
NTON-SEED OIL POOL.
TWy WORK OF THE STANDARD
OIL COMPANY.
The Most Gigantic and Oppressive Of
All the MOnOpOlies Ofthe Conn
try aud the age.

admitted that the Standtdd Oll toln-
many was back OF the American Cotton
oil Trsst. The present depreciation
Of the certificates is said to be due 10 a
freezing-out movement ON the part OF
the Standard Oil parties 10 compel
small holders TO withdraw at loss
The large holders buy in the certiii-
Gates as rapidly as they are thrown on
the market. At present few or no
certificates can be picked up in St
Louis, and holders appear 10 have
made up their minds TO wait for the
profits that are sure 20 come when the
pool gets ready.
A nrominent oil man gave the fol-
lowing account of the connection OF
the Standard Oil Company with the
trust: ~ know }. V. Lewis well, and
/ can assure YOU that while he is a
thorough gentleman and very pleas
ant person 10 meet, he is one of the
ablest, shrcWdest, keenest OF business
men. Well about two years ago he
conceived the idea Of forming the
pool At that time the Union Tank
Colnpanv L think that is its name
was hauling the Standard Oil product
TO Texas, TO the various stations of the
Winters. Pierce Oil Company. The
Standard Oil Company obtained pos
session Of the rights OF the Union Tank
Company and the sole privilege To use
tanks in the transportation OF oil that
is an important part OF the stand
ard oil monopoly. Payne OF Ohio,
who is now Senator from that
STATE, had charge OF the lu-
bricating oil department OF the
Standard oil Company and also of
the transportation department He il
credind with having originated the
idea a hauling back the crude cotton
oil in the tanks instead OF bringing the
latter back empty. The suggestion
was carried out and worked 10 a
charm, and the Standard Oil and the
American Cotton Oil Trust ut once
entered into an alliance, offensive and
otherwise against the general public"
How large an interest do you sup
pose the Standard Oil Company has in
the American Trust ?"
"Fivo-eights or nothing The
Standard Oil Company won't touch
anything for less than the controlling
interest Now | don't say that il holds
trust certificates as Il corporation but
Individual members certainly do"
II now has control of more than 90
per cont OF the mills west of the Mis-
siBipi river, and, as u rule, those that
IL does not control are not worth hav-
ing Its custom Of paying SO certih-
catcs for 81 of good mill property does
not hold any more. The trust has Sc
cured sufficient corner on the industry
nov that II can, in n measure, fix its
own price for new possessions, and that
ia what II is doing For some OF the less
valuable mills now desiring and beg
ging admission 10 the pool, know,
The tsst pool il offering only IFS stock
OF par value for the mills at a reason
able valuation"
HAS the trnst absorbed any mills
recenuyT'
'fYea, have to-day been advised of
its taking in, within the last few days,
The, min owned by q. NJ Ncil at Swan
Lake, Ark. Then there are four or
Ave cotton oil mills in Memphis that
some hme ago thought they could OPP
pose Che pool by making united
effort, and they refused to bc part Of
IT, They didpI \ stick together, and in
the end II would not have availed if
4 they had, and to-day they are doing
All tbey can TO get into the pool, The
trust, however, is not especially anx-
\ 1Qqs t0o have them now, and ii they
como tnitwill beatthe trusts own fig
ores The mills two in number and
the, ,sstt0n compress nj Texarkana,
were bought for the trust some time
ago bN . 81 Louis gentleman and paid
for 70 my knowledge, in trust certif-
Gates "a about one-third their par value
A little later the pool took in all the
/, Pine, hbuf and Little Rock mills. In
short Y now has virtually all il wants
N the West and has begun the freez-
ing out process 10 get possession of all
good mills In other sections of the |
country. This great reduction in the
pricn OF cotton oil that the public is
enjoying now is the result of the
trpsth wanting mills that have been
holding siooi from IT,"
AFe the mills bought by pool certi-
6cates operated directly by the poolY"
"Ot course they are. The local
management runs the mill, but il has
nothing 10 say about what shall he
done with tho surplus. That goes into
the treasury OF the trust. The balance
sheete arc made out in the name Of
the American Cotton Oil Trust. The
bills for all improvements TO the mills
OF q permanent character must be sent
10 the central Office at Cincinnati 10 be
cashedl II a switch is laid 10 one of
the mills, or any other addition of
like character made TO the property.
the bills arc presented TO the local
management, their correctness certi-
fed 70 and sent in TO headquarters for
payment The local management NAV
deny IL but all the profits 90 TO the
American Cotton Oil Trust lust the
same rs they would in any pool of n
character that has been properly
described as being"
What do you think of the trust
declaring a dividend this yearPn
II think that 1t is reasonably GER
tain that il will not. There is no profit
IN the business as il is being conducted.
When there is no freezing out To be
done prices may be put on paving
basiA and the pool can then declare
diyidApds,"
what Mr., Hnnaur OF Ihts CITY snva.
An APPEAL reporter called on Mr..
Louis Hanauer yesterday and asked
him il thore was any truth in the re.
pcrt that come of the Memphis mills
had been trying 10 get in the Cotton
Oil Trust. rs alleged in 81 Tnp;s i,