Press and daily Dakotaian. (Yankton, Dakota Territory [S.D.]) 1880-1889, 1888-04-30
THETRUSTI NVESTIGATION
THE CONGRESSIONAL COMMITTEE
AND TIE OIL COMBINE.

How the standar OIL Company Started
with a Million, Multiplied the Amount
Nipety-Fold, and Nearly Doubled Every
Dollar of the Grand Total.
WASHINGTON, April 2s.-Mr. III. NJ.
Flageler, secretary of the Standard Oil
Trust, was examined by the committee
and testified that the trust was formed
in 1882, before which time he was secre-
tary of the Standard Oil company, of
Ohio. Thu oil company's capital was ST.
100000 then organized in 1878, and re-
fined 1000 barrels a day. 1t received its
Oil at Cleveland by the Atlantic and
Great Western railroad and shipped
by the Erie and New York Central
railroad. In 1878 purchases of other
refineries were made and consultations
effected. Later the South Improvement
company was formed with Messrs. Rock
ateuer, o. ID. Paine, Mr.. Flageler and
other members. AT the suggestion of
VIM. G.. Ward, j. Logan and others, not
members of the Standard it me-
gotiated certain contracts with railroad
companies which only lasted a short
time. The Standard Oil compan en-
tered into negotiations with various re-
nners and an agreement was made to
Make 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, 300, 900,
and, most of this used In purchase of
these refineries. In 1875 q similar agree
ment was made with r~efiners in Pitts
burg, Philadelphia, New York, and the
stock was increased another 81, 900, 900.
The company also purchased an interest
In the United pipe lines. In 1852, the
oil trust was formed and its capital stock
made $40, 900, 600, which has increased to
s90,0o0, 900, and a great many other re-
hnerles were made members of the trust.
Ihe yalr1e of this stock is now $3.50 on
the par value of 800. The stock paid
last year 10 per cent. on the par value.
Ihe annual dividend and reserve fund
amount to about ID per cent. per year.
Being asked If he knew of the Cotton
Seed Oil Trust, Mr.. Flageler replied with
a mile that unfortunately for himself he
was q stakeholder. There were no others
members of the Standard Oil company
SO lar as he knew, connected with the
Cotton Seed Oil Trust. The reports
that gas companies, street car com
panles and corporations, or businesses for
elgn TO che oil business are members of
the Standard Oil trust, CT that the
Oh company or trust are own
ers In, or hackers of any such organiza-
lions, MI. Flageler said were absolutely
untrue. The Standard Oil company owns
no part OF the stocks of one or more COM
pan1es engaged in the movement of
natural gas, and is constructing a pipe
line from Lima, Ohio, to Chicago to try
to make valuable for fuel the oil of that
region which proves valueless as an
iliuminant.
J. d. Archibald, an oil refner 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 absolutely false the statement that
from 500, coo, 900 to $3.50, 900, 900 had been
30 refunded. He denied that the organ
1zation OF the trust had reduced the num-
Der OF other refineries. On the contrary,
the number of ret1neries outside the trust
has steadily increased. He c%ontradicted
q statement made by Senator Emory, Of
Pennsylvania, to the effect that he had
been forced out of the refining business
through icing furnished inferior oil by
the Standard company. This assertion
brought Senator Emory, who was pres
ent, to his feet with a request to be
placed on the witness stand in his self
defense. At this point the committee
adjourned and Mr.. Archibald and Senator
Emory had pretty hot words across the
table while the committee was dispers-
ing, but they were finally quieted by the
member of the comnittea