Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1888-04-28
THE OIL TRUST HEARD.
SECRETARY FLAGLER GIVES ITS HIS
TORY AND OTHER FACTS.

Another Witness Has IA Little Dinicuit,
the Tarin Neutrality-suspicious. the Presi
| dent sees-New Postal Arrangement will
Canada-Ths House Record.
| WASHINGTON CRY, April 2s,-Before the
| house COMMITTEES on manufactures yesterday,
H. NJ Flageler secretary of the Standard Oil
| trust, was examined and testified that the
trust was formed in 1882, before which time
| he was secretary Of the Standard Oil COM
pany, of Ohio. The oil company's capital
WAS 81 900 900 when organized in 1870 and
it refined 500 barrels u day. 1t received its
oil at Cleveland by the A. a. q, w, road and
| shipped by the Erie aud New York Central.
In 1873 purchases Of other retineries were
made and consultations effected. Later the
South Improvement company was formed,
with Messrs. Rockefeller o. II. Payne, Mr..
Flageler and other members, largely at the
suggestion Of William q. Warden, j. Logan
and others not members of the Standard
company 1t negotiated certain contracts
with railroad companies which only lasted "A
short time. The STANDARD Oil company entered
into negotiations with various refiners in
Cleveland, and an agreement was made to
make a valuation by which they were to be
sold to the Standard company, to be paid for
In cash or in stock of the Standard company
at par The capital stock Of the company
was increased 81 ,5000O0 and most of this
used in purchase Of the refineries In 1876
similar agreement was made with refineries
in Pittsburg, Philadelphia, and New York
and the stock increased another million. The
company also purchased an interest in the
United Pipe lines In 1882 the oil trust was
formed and its capital stock made $40, 000, 900,
which has since been increased to $50, 600, 900,
and IA great many other refiners made mem
bers of the trust The value of this stock is
now Sl60 on the par value of 500 The stock
paid last year 10 per cent. on the par value
The annual dividends and reserve fund
amount to about IL per cent. per year. Be-
ing asked if he knew of the cotton-seed
oil trust, Mr. Flageler replied with smile
that unfortunately for himself he was a
stakeholder There were no other members OF
the STANDARD OIL company, so far as he knew,
connected with the cotton-seed oil trust. The
reports that gas companies, street car COM
panies and corporations or business foreign
to the oil business are members of the Stand
ard Oil trust or that the Standard Oil COM
pany or trust are owners or hackers of any
such organizations, Mr.. Flageler said, were
absolutely untrue. The Standard Oil owns
in part the stock of one or more companies
engaged in the movement of natural gas, and
is constructing pipeline from Lima, o., to
Chicago to try to make valuable for fuel the
oil in that region which proves valueless as
an illuminsnt.
j. d. Archibald, AN oil refiner and holder of
stock in the Standard Oil trust, testified that
about rs per cent of the oil refining interest
of the country is now in the hands of the
Standard Oil company. He admitted that
large sums of money had been paid to the
Standard company by railroads as rebates |
but said the same privileges were granted to
others by the railroads. He denounced as alb |
surdly false the statement that from $780, |
900, 900 to $3.50 900, 900 had been so refunded. |
He denied that the organization of the trust |
had reduced the number of other refn- |
cries; on the contrary the number of refiner- |
les outside of the trust had steadily increased. |
He contradicted statement made by Sen
ator Emery, of Pennsylvania, to the effect
that he had been forced out of the refining
business through being furnished inferior oil
by the Standard Oil company.
This assertion brought Senator Emory, who
was predent, to his feet with request to be
placed on the witness stand in his own de-
feuse. At this point the committee adj
journed and Mr.. Archibald and Senator EN-
Dry had some pretty sharp words across the
able while the committee was dispensing, but
hey were finally quoted by the members of
The committee and promised that they would
be given a full hearing