The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-02-28
THE STANDARD OIL TRUST
Mr. John D. Rockefeller Tells the New
York Investigators a Few Facts.
What the Standard Oil Trust Is. and Who Its
Members Are-What 1t Is Organized For
and the Kind of Business 1t Transacts

information received Dy tD0 spectators on oaIur-
day was that the Standard Oil Trust would be
investigated at the continuation of the Senate
committee into the affairs of organizations or
combinations called trusts this morning John
D. Rockefeller arrived punctnally. with his
counsel Joseph Fl. Choate and John n. Camp.
After he had been sworn he testified.
II am president of the Standard Oil Company,
of the State of Ohio 1t is distinct organiza.
ton. apart from that of New York State"
Question-Who is president of the Standard
Oil Company of New York STATED Answer
Ny brother, William Rockefeller. The stock
holders OF the Standard Oil Company in the
State of New York are also stockholders in the
same company of Ohio
O-Do you know anything about the Stand
ard Oil Trustl Al do.
Q-Are you member of the trust2 Al
am.
Mr.. Rockefeller said the trust was formed uu-
der an agreement of about fifty oil refners in
different parts of the country. The capital
stock Of the Ohio company is $500, OOO The
witness said that he knew of the Standard Oil
Trust, and that it was not incorporated. 1t is
based on written agreement, made in January,
1882 signed by the shareholders of the COM
panies that entered the trust Mr. Rockefeller
presented the agreement asking that its con-
tents be kept from the press. it contained
private matter. He said that from five to
fifty companies entered the trust, but
would not say definitely how many.
The capital of the trust is 800 000,
0O0 He believed all the refineries entering into
the agreement were corporations. No compa-
MES were taken il afterward. except for reason
able value of their reineries. No efforts had
been made to force their stocks down in order
70 han fnfo st Tha Wit
that the oil product of the country is about 81
100000 barrels annually, and three-quarters of
this is controlled by the trust. The trust Ecer-
tifcates are worth $165: par value, $780, They
have been higher. In 1887 the shareholders
ceived 20 per cent more stock, and in addition
dividend of 10 per cent. Dividends have been
declared every three months the average being
u per cent. annually. Twenty million dollars
have been added TO the $70,000.000 of capita!
| been given stock dividends. in addi-
ton to the regular dividends A mum
BIER OF a sma rehnesisS nave .. 0e1 n
| The number of rein cries has been Increasing
| constantly, the trust doing nothing to prevent
| production. The trust only owns the stocks OF
| few small wells whose production is about 2C0
| barrels day, while the total production is IG0,-
| 600 barrels day. The trust has not been able
| allowed the general public nor has it received
rebates. The trust owns the stock of the pipe-
lines one of which brings the oil to the sea-
| board through tubes. The trust gave its certif-
/ Gates for the stock of the pipelines. OF the
! 500, 000 900 OF the capital of the trust. about
$50 600 900 represents the plant of the pipelines
| It costs about fortyfve cents TO run barrel of
| oil to New York from the wells. The oil from
| the different wells is run into tanks
owned by ., the pipelines and the sno owners
| pipeline certificates" with which they can get
! on the seaboard much oil as they call for. All
oil is run into the tanks together. and cannot be
oao6 Thar ifv If fha Sfne ia haid y a
present trustees The trust has succeeded in
| placing the certificates on the market as stocks
| of railroads.
| synopsis of the Standard Trust agreement
| is 1t was executed Jan. 2, 1882. It opens by
| dividing those entering into the agreement into
| three classes. In the first class Acme Oil
| Compa New York; Acme Oil Company. Penn
| syivana; Atlantic Refining Company Philadel-
| phia; Bush Co., lmited Camden Consolidated
| Oil Company: Elizabethport Acid Works; lmpe-
| rial Refining Company. limited; Charles Pratt &
| Co.; Paine, Albeit & Co., limited Standard Oil
Company, Ohio; Standard Oil Company, Pitts
Coz Company; Solar Oil Company. limited;
| Sonee & Fleming Manufacturing Company.
limited. Second class-W. c. Andrews. John
Hutchings, A.: J. Pouch, John 2. Rookie
feller l.. K. AFTER. Chas F.. Shey,
VIM. Rockefeller; J. 4 Bos.wick, 9.
Brewster Chas. Lockhart. ". P. Thompson, D.
| B. Bushnell, A NJ. McGregor, j. J. Vandegrift.
| Thos. c. Bushnell. w. H. Macy, W. L. Ward
warden. H. L.Davis estate of Josiah Macy. jr.
Joseph L. Warden. II. NJ Flaeler, w: I'll Macy.
| ir.. executor; Warden, Fred & Co.. Mrs H. NJ
| Flagler Q. III. Payne. Louise G. Wheaton, I'll.
| NJ. Hanna. G. W. Chapin. o. HI. Payne. trustee;
Julia H. York. D. NJ Hardness. Chas Pratt G.
n. si r. Keith. a G. F. Chester. trustes;
| S " Hardness c. NJ. Pratt and G. V. Chester,
trustees. Third class-The following corpora
brIcating Oil Company; Inland OH Company
| Baltimore United Oil Company; Keystone Re-
| fnine Company; Beacon Oil Company; Maverick
/ Oil Company; Bush 81 Dinsow Manufacturing
| Company: National Transit Company: Central
| Refining Company, of Pittsburg; Portland Ker-
| osene Oil Company: Cheeseborough Manufacture
Petroleum Company: Chess Carley & Co.;
| Signal Works. limited; Consolidated Tank-line
Company; Thompson g. Bedford Company.
| limited; Devoe Manufacturing Company;
Vacuum Oil Company; H. G. Vantine & Co.,
limited; Walter Pierce & Co; Franklin Pipe
line Company; Salina Oil Works; Salina Farm
| Oil Company; Eclipse LuOricating Company;
Empire Refinery Company; German Mining
| Company.
The purposes of the trust to mine for,
produce manufacture. refine and deal in petro-
| leum aud all its products, and all the materials
| used in such business, and to transact other
business connected with the same. The parties
| agree TO form corporation under the laws of
| Ohio, New York, Pennsylvania and New Jersey,
each corporation to be known as the Standard
| Oil Company of such State. The trustees are
| given power to purchase the bonds aud stocks
| of other companies The duties of the trustees
| are described Each trustee is entitled to sal
| airy not exceeding $50. 900 wear, except the
| president who may be voted $50 000
| Mr. Rockefeller said growing and dangerous
| rival had sprung up in Europe. The Roth
| schlds are taking advantage of the American
| idea of tubes, and are successfully working
| Russian oil fields The witness said that the
| Standard Oil Trust has but little to do with pro
| ducng OIL its buness being almost entirely in
| refining and Transporting oil. 1t makes barrels
and has reduced their cost in yew years from
| 81. 30 each to 81. 25 The company owns oil cars
and is interested in natural gas. and controls
the stock of several such companies Mr.. Rookie
| Teller refused to produce the minutes of the pro
ceedings OF the trustees
John D. Archbold and other trustees testified
in zorro boration. He said that tho trust EN-
ploys Is, 900 men. their pay ranging from Sl.5(
to $3 per day.
Mayor Hewitt Believes in Trusts.
New York Special.