The morning news. [volume] (Savannah, Ga.) 1887-1900, 1888-02-25
THE COTTON SEED OIL TRUST.
Objections Raised by the Attorneys to
the Investigation.

New YORK, Feb. 24.-The Senate Inves-
tigating Committee took up the Cotton Seed
Oil Trust to-day. This trust made no effort
to conceal its real status. Before the exam
ination of witnesses was begun lawyer Elihu
Root, i'll behalf of the trust, objected to
the investigation on these grounds:
THE trust has only to do with cotton
seed oil. No cotton seed is
grown or produced in this State; the cor
poration was not formed in this State, but
in Arkansas; only three OF the mne trustees
live in this State; no combination or agree
ment has been made in this State; cotton
seed oil is not an article of general con-
sumption, and it is not within the scope of
the committee to investigate the trust; the
committee has no more to do with the trust
than it would have with a Connecticut
woolen mill or Western railroad"
OBJECTIONS ovERRuLED.
The committee overruled the objections
and called John Scott, one Of the trustees,
to the witness stand. He said: "rhere are
seventy or eighty companies in the trust
Last years crop was 100000 tons, of which
the company controlled $4,000 tons.
Twenty-seven and half per cent. of the
oil was exported. The balance was used for
soap, safety lamps for miners and as alubri
Gator. The several firms made monthly
reports, which are Investigated by the en-
ployes of the trusts
ITS CAPITAL STOCK.
The capital stock of the trust is fixed at
Sal 700 900 nominally. A dividend of 4
per cent has been declared. As the stock
sold for 80 per cent. the dividend was actu
ally about 10 per cent The combined stock
of the companies entering the combine was
less than half Of the stock of the trust
The witness thought that since the forma-
tion of the trust in 1885 the price of cotton
seed had risen. AT that time the mills were
on the verge of bankruptcy and some of
them had to shut down.
ARMOURS THREAT.
Mr.. Bliss asked the witness if he had
heard that Armour q Co., of Chicago, had
at one time threatened to establish a
cotton seed oil trust in opposition to the one
now existing.
Answer. l have heard that
Question. 1t was not established, was it
A. No, sir.
o. Was that not because of an under
standing, or in fact an agreement of some
kind between Armour g. Co., and the Cot
ton Seed Oil Trust or some of its stockhold-
ersl
THERE WAS AN AGREEMENT.
At this point the witness became confused
and decliped to state. The committee, how
ever, directed him to answer, and after con
sulting with his COUNSEL he said there was
an agreement between Armour 81 Co., and
the Cotton Seed Oil Trust, which stipulated
the price at which the former could pur-
chase oil.
Gen. Prior demanded that the witness be
directed to state in detail as near as he
could recollect, the provisions of the agree
ment
The witness could not remember He
stated, however, what he knew regarding
his own side, but appeared delicate about
saying anything regarding the affairs of
Armour & Co., in connection with the
trust.
FAILURES TO SERVE SUBPGNAs.
L. A Newcomb, who served subpenas
for the committee, testified that he had en-
deavored to serve subpenas on John II.
I Rockefeller, William Rockafeller and j. d.
Archibald, of the Standard Oil Company,
W ithout success. He had reason to believe
that the statement that the former was out
of town was untrue. The second person
was reported as being in Florida, and the
latter had so far evaded service of the sub
poana.
j. o. Mott, Treasurer of the Cotton Oil
Trust corroborated the testimony of Mr..
Scott. He receives salary as trustee and
another as Treasurer. He thought the trust
would last twenty-five years.
Mr.. Root then guaranteed that the Stan
dard oil men would appear for examina-
ton tomorrow, and the committee ad-
journed.
FRIsCo's SUGAR SYNDICATE.
SAN Francisco, Feb. 24-An authentic
statement is made here to-day that the
sugar syndicate formed to fight the Eastern
trust has been finally completed, and it is
stated will commence operations with
paiG-up capital of $4,000, 600 Those out
side of California parties principally inter
ested reside in New York, Boston, Balti-
more, Jersey City and Philadelphia.
SAvANNAu,s WATERWAY