The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-02-25
Elihu Root, on Behalf of the Trust,
Objects to the Investigation.
He Holds That the Trust Is an Insti-
tuition OF Arkansas.
The Committee, However, Over
rules the Objections.
Armour & Co. Mixod Up With the Trust
An Agreement Exists Which Stip-
ulales the Price at Which Ar
mour Can Get OH.

Nrw York, Feb. 2i.-The Senate in
vestigating committee took the Cotton Seed
Oil trust today. This trust made no effort
TO conceal its real status. Before the ex-
animation OF witnesses was begun lawyer
Elihu Root, on bchnliof the trust, objected
TO the investigation ON these grounds:
''The trust has only to do with cotton seed
oil; no cotton seed is grown or the oil pro-
ducod in this State; the corporation was
not formed in this State, but in Arkansas;
only three OF tho nine trustees live in this
State; no combination or agreement has
been made in this State; cotton seed oil is
not nm article OF general consumption, and
1t is not within the scope Of the committee
TO investigate the trust; the committee has
no more TO do with the trust than II would
have with Connecticut woolcn-mill or q
western railroad"
The committee overruled the objections,
and called John Scott, one Of the trustees,
TO the witness stand. lie said: There
are seventy or eighty companies in the
trust; last years crop was 100000 tons, Of
which the company controlled $4,000
tons; 27l per cent Of the oil was exported.
The balance was used for soap, safety
lamps for miners and as lubricant. The
several firms make monthly reports which
arc investigated by employees of the trust.
The capital stock Of the trust is fixed at
81, 200, 900 nominallv.
A dividend OF per cent. has been de-
clarcd. As the stock sold for % per
cent. the dividend was actually about IL
per cent. The combined stock OF the COM
panics entering the combine was less than
half Of the stock OF tho trust. Witness
thought that since the formation Of the
trust In 1885 the price Of cotton seed had
risen. Al that time the mills wcrc on tho
verge Of bankruptcy, aud some Of them
had shut down. The witness. with some
reluctance, said there was nm agreement
between Armour 4 Go and the cotton seed
oil trust, which stipulated the price at
which the former could purchase cotton
seed oil. lie could not remember the pro-
visions Of the agreement. lie stated,
however. what he know regarding his own
side but appeared delicate about saying
ANYTHING regarding the Affairs Of Armour
& Go. in connection Witt the trust.
l.. A. Nowcomb, n subpoena server for
| lllf loillnlit'tt ithtiutu tistt It utu tU-
dcayorcd 10 serve subpenas on John III.
Rockefeller, VIM. Rockefeller and J. ID.
Archibald, Of the Standard Oil company,
without success.
J. o. Mott, treasurer Of the Cotton oil
trust, coToboatcd the testimony OF Mr..
Scott. lie receives n salary m trustee
and another M treasurer. lie thought the
trust would last twenty-five years.
Z. T.. Sanford, president OF the MIX
exchange, showed a sample Of milk tickets.
A. Howell, editor Of the Mt Reporter,
said that the rate on western roads 10
New York, was controlled by the trust.
Tho present rate OF 81 cents quart TO the
farmer does not permit Of proper feeding
Of cows.
Mr.. Root then guaranteed that the
Standard oil men would appear for cxami-
nation tomorrow and the committee ad-
joumed.