The Palatka daily news. (Palatka, Fla.) 1884-1888, 1888-02-25
NO EFFORT MADE TO CONCEAL
IT'S REAL STATUS.
Counsel on its Behalf Objects to An
Investigation.
John Scott, one of the Trustees, Appeared
Delicate about Saying Anything
About Armour 4 Co.

NEW YORK, February 24.-The Senate
Investigating Committee took up the
Cotton Seed Oil Trust to-day. This trust
made no effort to conceal its real status.
Before the examination of witnesses
was begun lawyer Elihu Root, ON behalf
of the trust, objected to an investigation
on the grounds that the trust has only to
do with cotton seed oil. No cotton seed
is grown or prodnced in this State. The
corporation was not formed in this State,
but in Arkansas. Only three of the nine
trustees live in this State, No combina-
ton or agreement has been made in this
State. Cotton seed oil is not an article
of general consumption, and it is not
within the scope of the committee to in
vestigate the trust. The committee has
no more to do with the trust than 1t
would have with Connecticut woolen
mill or Western railroad.
The committee overruied the objec-
tions and called John Scott, one of the
trustees, to the witness stand. He said
there are seventy or eighty companies
in the trust. Last years crop was 700.-
600 tons, of which the company con-
trolled $50, 900 tons. Twenty-seven and
one-half per cent. of the oil was ex-..
ported, the balance was used for soap,
safety lamps for miners and as lubri-
| Gators. Several firms made monthly
| reports. which are Investigated by the
employees of the trust.
| Tho nar,itaI Stnol Of tho tr,uf 10 xod
at $41 200, 900 nominslIy. A dividend of
| per cent. has been declared. As the
| stock sold for 80 per cent, the dividend
was actually about 12 per cent. The
combined stock of the companies enter
ing the combine was less than half of
the stock of the trust. Witness thought
that since the formation of the trust in
1885 the price of cotton seed mad risen.
At that time the mills were on the verge
of bankruptcy and some of them had
shut down.
Mr.. Bliss asked the witness if he had
heard that Armour & Co.. of Chicago,
had at one time threatened to establish
cotton seed oil trust in opposition to the
one now existing.
Answer-"I have heard that"
"It was not established, was it,
| ''No, sir"
"Was that not because of an under
standing, or in fact an agreement of
some kind between Armour & Co. and
the Cotton Seed Oil Trust, or some of its
stockholders"
At this point the witness became con-
fused and declined to state.
The committee, however, directed him
to answer, and, after consulting with his
counsel, he said there was an agreement
between Armour & Co. and the Cotton
Seed Oil Trust which stipulated the price
at which the former could purchase cot
ton.seed oil.
Gen. Pryor demanded that the witness
be directed to state in detail, as near as
he could recollect, the provisions of the
agreement.
The witness could not remember. He
stated, however, what he knew regard
ing his own side, but appeared delicate
about saying anything regarding the
affairs of Armour & Co. in connection
with the trust.
L. A. Newcomb, subpoena server for
the committee, testified that ne had en-
deavored to serve subpoenas on John II.
Rockefeller, William Rockefeller and j.
ID. Archibald, of the Standard Oil Com
pany, without 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 thus far
evaded the service of a subpoena.