The morning news. [volume] (Savannah, Ga.) 1887-1900, 1888-04-28
A G0LD-LINED OCTOPUS.
II. NJ. FLAGLER TELLS OF THE
STANDARDS BIG PROFITS.


pany 136 Per Cent.-A Ten Per Cent.
Dividend Declared Last Year-Stock
Dividends Declared Out of the Sur
plus Earnings.
WASHINGTON, April 27.-In the investiga-
tion of trust to-day Daniel O'Day, of
Buffalo, General Manager of the National
Transit Company, one of the Standard
Company's branches, testified that the
American Transfer Company, a former
pipe line company of which he was an
officer, received 221sc. per barrel drawback
from the Pennsylvania railroad on all oil
shipped. He did not know the total amount
received by this arrangement, nor whore
| the books were which would show it. The
company received drawbacks from the
| Erie railroad to pay the expense of piping
oil from Oil City TO the tracks of the Erie,
which could not get to ''the lower" oil field.
The nominal rate of 25c. per barrel was
| also charged the owner of oil for its trans
| portation from the well to the Erie railroad.
H. NJ. FLAGIER ON THE STAND.
| Henry NJ Flaglsr, of New ork city, one
of the original STANDARD oil men, and Sec
retary of the Standard Oil Trust, gave
history of the Standard Oil Company of
| Ohio, its acquisition from time to time Of
refneries and oil works by purchase, for
| cash or stock in the Standard company,
| and of various transactions leading up to
| the formation of the Standard Oil Trust.
| The capitalization of the Standard Oil
| Trust at the present time is 500, ,0O00 900,
and the market value of each
500 of the capital stock is
about $3.50, making the total market value
of the trust sl44, 100000. The dividends
for 1887 were 10 per cent. on the capital stock
| The average dividends had been per cent.
and the average earnings 1856 per cent Out
of the surplus stock dividends had been in
part declared. The witness could not
| answer a number of questions with refer
| ence to recent matters, and said in explana-
tion that for eight years he had given abso-
| lutely no attention to the details Of the
| business.
THE COTTON SEED OIL TRUST.
The American Cotton Seed Oil Trust was
next taken up, and in reply to question
the witness said that unfortunately he was
interested in the trust as shareholder
! The President of the trust was j. II. Flag
Ter, very distant relative, if any kin at
all
| Representative Buchanan-It has been
stated that this trust includes within its
membership stockholders formed in different
| cities for the purpose of supplying the in
| habitants with manufactured gas. Is there
any foundation for that statements
| Answer-No, sir; not to my knowledge.
| Question-It has also been stated as to
| horse-car lines.
| . Answer-That is also untrue.
QueStion-And as to the Cotton Seed Oil
Trus is the Standard Company interested
| in thatg
Answer-No, sir; nothing of the kind.
WHY HE Is UNFORTUNATE.
The witness said that he, as an individual
was stockholder in the Cotton Seed Oil
| Trust. He had used the term, "unfortu-
nate possessor of stock, a." because he had not
taken advantage of an opportunity to sell,
and the stock had since declined. He had
held it five years, and had received a divi-
dend of ! per cent. Certain parties, the
witness said, in order to make the people
believe they had good backing had repre-
sented that the Standard Oil Trust was
behind them in their enterprises. This was
especially true of certain Chicago horse
| car lines These representations were
absolutely and unqualifiedly false.
The trust, by the terms of its
agreement, had no right to engage in the
horse car line and other business. After be-
| ing discharged from the stand Mr. Flagler
asked to be allowed to make statement
and said he had been advised that he had
| made serious misstatement in saying that
the Standard Oil Trust was not interested
in any natural gas corporations He was
advised that the trust was holder of stock
of one or two natural gas companies.
ARED HOT MoNoPoLIsT.
| J. D. Archbold one OF the trustees of the
Standard Oil Trust, was the next wit
ness. He stated that there was no him
drance in the way of capital paralleling
the Standard Trusts pipe line. There
| ,.y,i ixh
petition with any Of the service
the united pipe lines. Persons
who said otherwise were sore-heads
who had not the business ability to com
| pete, and their statements were utterly
false. Any man with ability and capital
could engage in the business. The state
ments made before the committee in regard
to the amount Of rebates paid to the
| Standard Oil Company, TO the amount fool
ishly mentioned. were absolutely false, and
| he commiserated with the committee for
having TO listen to the veriest balderdash
! He stated that the railroad rebates paid
was mode of reducing rates which
the public got the benefit Of, and that
there was not scintilla of truth in the
charge that any part Of the rebates were
returned to the railroad officers. The
charge to that effect was ono Of the lies
which had become current with certain
men; and the men who made such state
ments ought TO be prosecuted for libel.
The witness denied the correctness Of the
statement alleging that the discrimination
Of the Standard Oil Company had forced a
large number Of refiners to go into bank-
ruptcy; and he again denounced as false
the statement, that the railroad officers
participated in the rebates.
EMoRY's vERACITY IMPEACHED.
He denied the truth Of the statement that
a certain refner Senator Emory, of Penn
sylvania,l had been obliged TO go out Of
| busino>s, because, owing 70 the discrimina-
ton Of the Standard Company, he had re-
ceived bad OIL On cross-examination the
witness stated that he had, personally, never
seen the oil that was gwen 10 Mr.. Emory,
but no knew all about it that anybody could
know who did not do the physical work Of
loading oil cars.
A Double Elopement.
WAYS, Ga, April N.-There is excite
ment among the colored people at this
place over a double elopement which
occurred last night. The contracting
| parties yyere Rev Peter Cummings and