Omaha daily bee., 1899-05-17
SWAY OF THE STANDARD OIL
Attorney General Monnett Describes
Operations Of Great Trust,
METHOD PROPOSED TO CURB ITS INFLUENCE
Remedy Said to Lie in the Courts
Control of TRANSPORTATION Conn
pnnics Which Garry the Core
porntion's Products.

WASHINGTON, May i6.-Attorney General
Frank s. Monnctt of Ohio was before the In
dustrial commission today as a witness in
the trust investigation. His testimony re-
lated almost exclusively to the Standard oil
trust against which he has been proceeding
in his official capacity in Ohio. After de-
falling the particulars Of the suits against
the standard company brought on behalf of
the state of Ohio, MIR. Monnett said the COM
panies comprising the trust were 80 distrib-
uted as to control all the operations pertain
ing to the production. transportation, refin-
ing and delivery OF oil in Ohio, including
even it's cwn telegraph system.
Mr.. Monnett complained of discrimination
In telegraph and railroad rates in favor of
the Standard company tank lines saying
that in the latter 1t was equal to 400 per
cent against the ordinary citizen.
Mr.. Monnett gave the figures showing that
the capitalization of the twenty companies
comprising the trust amounted in the aggre-
gate to $lO2 23SO00 and the valuation S121,-
$4,000. He said the trust could make its
dividends whatever 1t desired, as 1t con-
trolled completely the retail price OF oil
Mr.. Monnett told of the distribution of the
stock of the trust, saying that the trustees
held 466,2S0 of the 700, 900 shares, and that
John d. Rockefeller, as chairman of the
trustees, held majority of the stock thus
distributed, giving him the balance of power,
making practically one man power.
Mr.. Monnett said the original value of the
plant of the trust was 1880 900, but this
figure should now be multiplied by five.
Mr., Monnett insisted that the way to control
the trusts was to control the transporta-
tion companies which, he thought, the courts
could do, and if the courts could not do
this the charters of the roads should be
taken from them
The attorney general of New Jersey could
secure action on this discrimination within
sixty days If he would take it in hand the
witness said.
Speaking Of the earnings OF the oil trust,
Mr.. Monnett estimated that the gross re-
cepts were Sl2O,OOO,OO a year on the Ohio
product alone, and he said that all was
profit over cents gallon on refined oil.
He placed the value of the earnings of the
company per year as greater than the value
Of all the farm products of the state.
Secret Agents nt Work.
AT the afternoon session of the commits
sion Mr.. Monnett said in response to uues-
ton from Commissioner Kennedy that he
did not wish to enter upon a discussion of
the charge that the Standard Oil company
mad been guilty of attempts at bribery to
prevent judicial investigation, as that mat
Ter was at present under investigation by
the Ohio supreme court. These PROCEEDINGS
doubtless would bring out all the facts and
later he would supply the data to the COM
mission. He could. however, testify to the
fact that the company had secured the serv-
Ice OF railroad agents all over the country
TO report upon the movements of their RI
Vals and he knew of one instance in which
the clerk OF a rival concern had been en-
poyed to supply the details of his en-
ployers operations to the Standard company
Also the company had its "buzzards" every
where. They we're appointed to follow the
wagons OF rivals Snd secure data upon which
the company would operate When rivals
were driven out Of a field by reducing rates
the prices Immediately went up.
Mr. Monnett said he understood that the
Standard company controlled from 90 to 81
per cent of the crude oil product but as |
the company controlled the means OF trans
portation it was not necessary that 1t should |
take the oil out Of the rock. The company |
was thus independent of well ownership !
He did not agree with the statement that |
the Standard company was entitled to credit |
for the reduction of the prices of oil, be- |
lievng this reduction to be due entirely to !
other agencies.
Referring to the government controlling |
the transportation agencies, as the avail |
able remedy of the evils of which he COM
planned, Mr.. Monnett said that no course |
could be too severe, If nothing less would |
produce the desired result. The states had
the remedy of declaring the annulment of
their charters and this should be resortel |
to II they failed to treat all equally fair.
In conclusion Mr.. Monnett said that suits had
been begun in the Ohio courts against the
tobacco and tin plate trusts and also against
the Central Traffic association.
There will be no more witnesses before
the commission until next Friday.
BOND OF THE FAST AMI WEST