New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-02-25
MILK AND OIL MINGLING.
rwO TRUSTS CAREFULLY sCRUrINIzED.
EXPLAINING THE PROFITS ON COrToN>EED OIL
CyT THEIR pYfCEs HERE.

pied by the Senate Investigating Committee, wheh
the Senators took their seats yesterday. Already
three trusts had been looked into MIX sugar
and rubber formed the work OF Thursday ana
milk and OIL although they do not NIX weii'
occupied the attention of the committee yesterday
Bronzed-faced farmers represented milk we'll
dressed men were there because Of their interest IN
cotton-se oil. After the first witness IN inc
Cotton-Seed Oil Trust called, Elihu Root, who'
with ex-Judge Granville Z. Halves and W. n.
Cromwell, represented the trust, made the follow
ing statement:
the Committee on General Laws OF the Sae oi NOV"
York
The individual trustees Of the American Cottonoil
Trust reside In the State OF NewYork respectfully
reprusent and affairs of tho said trust
are and be the subject OF legislation Dy
tho Legislature OF NewYork or Of Investigation by your
committee The subject matter OF tho trust IL the STOCK
OF certain corporations engaged in the manufacture and
sale Of cotton seed oil
No cotton seed is produced dealt in within this
State and OF the said corporations are engaged In
manufacture In this State. The trust was not formed
here but in State OF Arkansas Tho trustees are
not located here Twohirds of them residents OF
other Safes but three OF tho nine reside In this
State.
The Legislature OF New-York has no more concern
with this business than could have with New Eng and
voollen mill because II sold goods here, or Western
railroad because resident OF NewYork happened to be
been no combination agreement here. relating TO
business here which would possibly create monopoly
here. The articles in which said corporations deal or
which they not articles OF general con-
sumption necessity within the tenor OF the resolution
under which you act
We submit that the affairs of the said trust are not
within the proper of duties powera
Chairman Arnold said that the committee
would have the statement included IN the report
OF the committee.
EXPLAINING THE WORK OF THE Trust
John d. Scott was the first witness called. He
is trustee of the trust which, he sald was formed
in 1884 The plan Of formation adopted was
similar to that of the sugar trust. The stock
holders surrendered their stock in the various
corporations and received stock certificate The
officers Of the trust in that year were ); "
Lewis president; j. l.. Macauley, treasurer; j. a.
Aldigc, secretary; the present officers are j.. IL.
Flaglcr, president; j. Q. Moss, treasurer, and j.
Anderson secretary. There are between seventy
and eighty corporations in the trust, the certifi-
Gates of which registered III the Farmers Loan
and Trust Company, and are dealt IN on the STOCK
Exchange as unlisted securities. The corporation
is divided into 1000 shares OF 81 90 each, ana
the various companies in the trust declare dlyi-
dends, and these are in turn handed over TO the
trustees. This 700, 900 tons OF cotton-seed
will be crushed $50, 900 tons OF which Will be
crushed at the mills controlled by the corporation
O-What is this oil used forl A.-For many purposes
Q.-Isn't lard made OF in Alt is used to improve
that commodity known as hogs lard
Senator Iyes-Isn't of 1t sold as olive oilf Al
that the ubiquitous Frenchnan and the versa
tile Italian put It on the market as such We don't
GLOW much Of this oil is exported to come back to
US as olive oil AAbout 81 12 per cent Of the product
Low grades are used the manufacture OF soap and for
lubrcating uses and the higher grades are known as
edible oils
Mr. Scott said that the price of seed, the raw
material had risen, while the price Of the oil
was lower since the trust had been organized
Notwithstanding tins fact, dividend of 81 1000
was declared last August. He afterward stated
NAT he
or 81, G6S,0VO, only one per cent of which has
been paid.
the witness greatly. The Senator wanted to
know how Mr. Scott could expect the committee
to believe this statement when he had previously
declared that before the Trust was formed on q
capital watered 400 per cent the manufacturers
were on the verge Of bankruptcy, and dividend or
per cent had since been declared. This the wit
could not answer.
TN" RoCKEFELLERs TO BE CALLED.
Colonel RliSs next cllled for John d. Rookie
Teller president of the Standard Oil Company, and
William A. Rockefeller, president Of the Standard
Oil Trust. Neither OF these gentlemen answered
to his name. William Rockefeller had gone to
Florida and John d. Rockefeller could not be
found by the subpoena-server but later Mr. Root
said he would be on hand to-day to testify.
In the afternoon Mr.. Scott appeared before the
committee with the bylaws and other papers Of
the Trust. During Mr. SCOTS examination Sena-
tor Ives questioned him closely Oh the connection
the Trust had with the ArmOurs. The reason that
the Armours did not start an opposition TO the
Trust was because an agreement had been made
with them. General Pryor asked Mr. Scott to pro
duce this agreement. lie said that he could not
produce it, and he was not certain that he could get
Ii if he asked for il. He might send to Ohio where
the head offices of the Trust are, but then ne was
not certain Of receiving 1t.
j. o. Moss, the treasurer Of the Trust also
trustee was called in the afternoon. He did not
know what power he lad as a trustee, as he had
been to only two meetings. He said that the
board Of trustees might be composed Of fifty mem
bers more or less, he really didn't know. lie sur
rendered his stock and received back certificates
like the rest Of the members. There was some
specification as to their power when dividends are
declared, hut he didn't know what that was.
The agreement which he signed he had read but
had sent It Immediately TO Ohio where there was
litigation going on against the Trust. lie didn't
salary one ms trustee and the other as treasurer.
Bnt he refused to tell the amount The COM
mittee decided that the question should be ex.
cluded.
CAR"s SENT To TIE FARMERS.
The Milk Exchange Limited was next taken up
The president of the Exchange, Mr.. Sanford,
identified cards which the Exchange sends out to
farmers announcing the price of milk. Here are
two of.the cards:
Alta special meeting of the MIX Exchange Limited"
held this day 1t was the 18th day OF
July 1885, and until otherwise ordered the market price
of milk be IL cents per quart.
p. E. SANFORD, President
j. D. MILLER Secretary
New York April 90
At a meeting Of the Milk Exchange, Limited held
this day It resolved that o the LIST day Of May
next and until otherwise ordered the market price OF
MIX produced from meadow hay and sound cereals be
1-2 cents quart and that produced from brewers
grains glucose and starch refuse be cents quart
p. f. SANFORD. President
J. d. MILLER, Secretary
The Editor Of The Milk Reporter" testified to
the reports in his paper Of the quantity of milk
that comes into this city daily. He also said that
the Exchange controlled the price of milk OH all
the Western railroads running into New ork He
further said that the effect to produce poor
milk for the farmers fed a cheaper quality of food
TO the cows when milk was low than when they got
a fair price for it,
Before the adjournment Chairman Arnold asked
Mr. Root if the Oil Trust men would be willing TO
90 To Albany before the committee. Mr.. Root