The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1886-03-04
CJITON.SEED OIL POOL.
TEEBER or THE STANDARD OIL
COMPANY.
A Crashing sn1 Grinding Monopoly
TbAt viii Kill All Opposition
and RnslaYe the Planter.


81. L0aie Republican, is rs follows |
Nv. Lewis Of Cincinnati is president, |
and lbe nominal head Of the new mo- |
nopoly. Two years ago he had cotton |
oil.nins in Cincinnati, ST. Louis and |
Texafkana. Ills Investment in these /
mills represented large sum, and the |
profits were enormous, running all !
The way rom ~ 10 0per cent on the |
money Mr.. Lewis, being a man 0l !
great ability, considerable wealth, and
extraordinary shreYdness, conceived |
the idea NJ forming pool 10 control
the cotton oil market. The profitable
nature ~ the business was attracting
a host az small fry manufacturers who
flooded the market with oil, depressed
tba mice AZ the finished goods, and
enhanced that of the raw material.
Profits teean 10 dwindle, aud the ne
eessity FOR pool became more press.
ing in Mr. lewiss eyes. lie hrOached
the iden ~ one or two other oil men
who i,'t the evils but could not see
the remedy, and WIS agrceably sur
pfispd ~ lind That they cordially In
dorsed the project Then II was that
lie first ovcrtures were made 10 the
.rAVpARp on COMPANY.
II Is asserted that the latter corpora
ton obtained nn interest In the new
eoncein. and IN turn impaired its
methods to the Trust Company, with
MI The aid that close alliance made
imperaiivp. I'm fact, the two institu-
tinns have become ~ welded together
tina, separation would he a difficult II
moi np impossible task Scratch the
Cotton Trust Company and catch the
Standard OH Company. The capital
stock az the Trust Company is placed
nj sg0.O0 OOO, Of which fl1 100000 or
tlerpahouts has been issued TO the
mills bought by the pool. Az shown
below. however, the secrecy with
which the whole enterprise is being
conducted makes the collection OF ex.
act information matter of great diill-
Guilty. The methods of the Trust Com
pnnv are identical with those Of the
STANDARD OH Company, as might be
expected. The officers VI the Trust
have been aealously hut quietly at
work during the past two years with
the greatest sucress The pool Is now
uredlhly said to own
EVERY DESIRABLE Mlil
west " the Mississippi, and about 40
per cent. of the mills ol the entire
country The plan Of the procedure
Is ne follows: II the officers decide that
certain factory should he subject TO
pool control, the owner Is approached
and invited 10 sell his property II II
IL unincumbepd, and in good working
order. he rs given certificates tu the
amount of three times the value of his
mill. For less valuable property less
IL pail II the mill thus bought can
he operated with profit the trust
company places In It q superintendent
OF its own, aud takes possession Oi the
property From that time ON the mill
II ron as the best interests ui the com
pany dictate, the output being regu-
lated Nv the current prize of the cot
Ton seed products. The influence oi
the 1iust Is everywhere visible, values
being manipulated 90 suit the exigen-
cies " the cpmpanys interests. In.
stead " roaNinp the oil men to come
into the pool the officers now fine
that the small manufacturers ar
clamuring iot admission, fear
hl OF being outside and opposed to
the influence Oi the powerful syndi.
cate. IL is thought, therefore, that I,
Is only q question OF a short time be
fore the pool will be complete master
OF the situation. What will follow
can easily be Imagined II was stated
before that the point toward which
the Standard Oh Company was rapidly
Fastening was one where II would b,
a matter of impossihility for any out
side individual or corporation ;,
either manufacture a gallon Of oil or I
foot vi gas, The Standard OH Com
pany, through 4 third avenue, IN,
Cotton Oh Trust Company, is believe,
10 he simultaneously engaged il
making II impossible for any non poo
party 10 produce a single pound %
cotton-seed product.
VALuE or CmuriuArEs.
The present value of the certificates
is about 20 cents on the dollar hui
posted parties say that 20 cents viii
not buy the certificates m six months
No dividends have been declared ye
for the reason that the pool has no.
yet obtained sufficient control 10 Worl
the market advanmgcously. Follow
ing is q copy oi the trust certificate.
THE cERTlFToATE.
The american Cotton Oh Trust
Ihi' IS 50 certify that ........... Is cut
tied 50 .,,y, shares in tho equity 70 tht
properly held by the Trustees q the Ameri
can Cotton Oil Trust, transfcrablo only o,
the books If said trustees on the surrcnde
Of this certificate Tho certificate is issue
upon condition that the holder on any trans
visions Of the agreement creating said trust
and OF the bylaws adopted in pursuance o
laid agreement az fully "A II ....,. .. ha
signed the said trust agreement
witness the hands OF the president score
tary and treasurer OF The Board Of trustee
this @e, day OF 'aa... A p, lsse, &C tho cit
of New York. }, T. LEWIS, Prcst.
n. AiM0E, Scc'y.
J. L. MAoAULEv, Treas.
Non -assessablo
The Trust the property In
agreement" the bylaws and tn
"nastees' are alike kept studiousl
secret, and an impenctrtble veil OF $,
creoy is thrown around them Hol,
ets III certificates arc not even q,
quainted with the officers, nor DO the
know the conditions of the trust I
which they subscribe. They simpl
90 Il blind on the supposition that
must be good thing Speculation i
She certificates is discouraged. and
would-be purchaser asking for info
mation is met With polite but finn
refusal nom the officers OF the TtWs
ylik oRleCr or rm ROOT.
Mr.. Moses Fealey OF ST. Louis sa,
10 m interview that what the 20
wants is 10 get possession oi such
chunk Of the cotton oil manuiactu
ing property oi the country that Il
price oi cotton-seed and is produ
WiA So M and down at the viii OF q
MONOPOLY AS soon as they get 60
tfbl Of big majority OF the mills
the South MI other manufacturers "
have 20 succnuh and be united to &
pool I'd It's own hgnres By JONI
early they are able 70 fix their O,
ngitx.s i6f their property in measu
The Standard oil Company is an I'M
fration d what Spool can DO in ct
trolling such Industries,
'Whai Rm6nnt OF the cotton