The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-01-22
SPAWNED BY THE STANDARD OIL,

SPAWNED BY THE STANDARD OIL.
The Cotton Seed OF Trust and How it
Was Organized.
From the New York Herald
A direct outgrowth OF the Standard Oil
trust is the Cotton Seed Oil trust. The or
ganization OF this gigantic monopoly was
begun in 1888. It's growth has been slow
but sure. j., NJ. Flagler, John ID. Rookie
Teller and other magnates OF the Standard
have been instrumental in putting 1t on its
feet.
The same methods that the Standard
used TO crush out competitors have been
used by the Cotton Seed trust. Where a
mill could not be cajoled or bullied into
selling out to the combine, its business has
been ruined by the trust operating some
neighboring mill at heavy loss until the
outside min could stand it no longer and
gave up the fight Many small mill own
ers in the south have been ruined in this
way.
The object OF the trust is to retain the
absolute control Of the production and
price OF cotton seed OIL The stuff is used
10 an enormous extent in the adulteration
Of lard, imitation butter, olive oil and
many other food articles. Its use is so
general that IL is now well nigh impossible
to purchase either pure lard or genuine
olive oil. Cotton seed oil is exported in
large quantities and mixed with the olive
oil at the manufactures on the Mediterra-
mean before the oil is bottled and shipped.
The cotton seed oil then comes back TO
this country labeled "Hulle d olive super
flne"
OVER 100 MILLS,
The Cotton Seed Oil trust has a capital
stock outstanding in certificates of about
$50, 100000. These certificates at the pres
ent market prices Of 20 TO 80 per cent. are
worth about SlS,000,000 n year ago at 10
to IS per cent. they were worth about ST.
100000.
The trust owns about 40 mills, refine
ries and factories, scattered over the States
Of Georgia, Arkansas. Mississippi, Ala
hama, Tennessee, Missouri, Ohio, Pennsyl-
yania, Illinois, Nebraska and Texas. For
each mill taken into the combination an
additional amount Of certificates, cores
>" ponding with the agreed value OF the
property, was issued. Thus the capital
sock grew. There are no bonds or other
obligations None can be issued under
tho terms OF the trust, and even current
expenses must await the annual meetings
before their payment out ef the proceeds
OF certificates can he authorized.
The largest works Of the trust are at Lit
lie Rock, Ark. The buildings are 6iS feet
long and cover several acres OF ground.
All the processes through which the oil Is
put from the seed to the kitchen. are COM
pleted in this establishment. The next
largest works arc those OF the Union Oil
company, at New Orleans. At ST. Louis
the trust has recently established paper
factory to work up the lint saved from the
seed, and several OF the refineries are being
equipped with machinery TO solidify the
oil 10 the consistency and color Of butter
In this shape II is sold M a substitute for
lard.
The trust l,as been given little trouble
10y an opposition combination established
about year ago. There are eight oppo-
aion mills, Of which five are at present in
operation.
The present executive committee OF the
trust are j VI. Flagler, recently Of Boston,
now OF New York, and one OF the Stand
ard Oil men, president; NJ X. Fairbanks
Chicago, and y. o. Moss, formerly Of SAN
dusky, now Of New York, yice-presidents
These are, all fhree, men Of wealth. They
succeeded John V. Lewis, OF Chicago; w.
IT, Burnett, Of Chicago; J. w. Cochran, Of
Memphis, and Lyman Knapp, Of Proyi-
donce.
KICKING AGAINST TnR PRfcKs.
Attorney General Cunningham, on be-
half Of the State Of Louisiana, in April last
began a suit against the Cotton Seed trust
10 drive the monopoly out Of existence.
Tho sworn complaint IN the suit declares
that the trust If a gigantic monopoly
founded for the purpose of acquiring and
controlling the various cotton seed oil
.Itr 81 ~ thuN aaaI hos do
preciatcd 81 10 So per ton by the fraudu-
lent acts Of the company; that fictitious
stock has been issued to the extent Of over
$4,000 600, based upon less than 1000,
pO0 worth OF property that il has no legal
existence or domicilo; that IL was formed,
among other things, for the purpose OF es-
Gaping taxation upon It's property in that
and other States, aud that the trust IL an
illegal, invalid, immoral and corrupt asso-
citation, the object and aims OF which are
Ia contrayention Of the constitution and
laws OF the State, aud its existence should
h. suppressed and destroyed.
Frederick Oliver, OF Charlotte, n. c., Is
one Of many southern milies who com.
planned Of the high.handcd manner in
which the trustees have administered the
Affairs OF the concern. eve owned two
mills at Charlotte and at Columbia and
turned our corporate stock over TO the
trust" said Mr.. Oliver, recently, land W,
rceivcd trust certificates in exchange
But when We trcd'to find out something
about ihc business Of the concern Whose
paper We held We could learn absolutely
nothing. The business is entirely in th,
hands OF the trustees, who manage every
thing to suit themselves They are at LID
cry 10 vote themselves any salaries they
please. sill themselves seed II they wisl
and absorb all the profits Of the business
u they No incline. In addition We dscoy
crd that there was an immense issue o
trust certificates. representing now. he
lieye. about Sj0,OOO,000.
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