The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-09-10
REPLY TO Mr.. ARCHBOLD
MIR. PHILLIPS VIGOROUSLY DEFENDS
THE PURE OIL COMPANY.
Statement from the Vice Chairman OF
the Industrial Commission I'm Re-
gard to the independents,

consulted with Mr.. Archbold before the lat
ter made his statement, and that he fully
concurred in all that Mr.. Archbold had said.
He. like Mr.. Archbold favored a national
corporation law, as in the interest of both
the corporations and the people at large,
and he thought If the United States was 10
achieve its legitimate destiny as a CONNER
cial nation the Constitution should be
amended in this respect. Referring to the
overcapitaliZation Of companies, he said that
was a matter that always took care of it
self, because the public would not long buy
stock which would not pay dividend. He
did not believe in restrictive legislation be-
cause he was satisfied that the tendency to
gamble was born into many people, and
would be INDUCED in regardless of the ex-
istence of laws, or of Wall street or Lom-
bard street. He said in reply to questions
from Mr.. Phillips that the National Transit
Company exists under a special charter
from the State of Pennsylvania and that
this charter was very liberal in its provi-
sions.
What did you pay for it?'' the chairman
asked, to which Mr. Rogers replied: IT
don't know the exact amount, but as 1t is
good thing, 1 have no doubt the owner of 1t
did not let 1t go without getting good
price for it,
Mr.. Rogers stated that the Standards
price for carrying oil through it's tank lines
was 20 cents per barrel, and he said he con-
sidered this as very reasonable notwith-
standing Mr.. Phillips contended that cents
was sufficient.
Mr.. Phillips vice chairman of the commits
sion, here took the stand to make a state
ment in his behalf in reply to Mr. Archbold
He read his statement from manuscript
making full explanation of his
connection with the Pure Oil Company
He said he was free to confess his connec-
ton with this company, and that the object
OF 1t was Ito combine several interests in
the same company. This company" he
continued, ."has a fraction over one-half of
its stock in the shape Of voting trust, the
trustees being charged with the sole duty of
e!ecting directors of the company in con-
necton with their stockholders, yet having
no right to manage it's business affairs" He
then proceeded to give the reasons for this
organization in this form, which, he de-
clared, was for the purpose of keeping the
Standard Company out of the organization.
That company has made" he said, "sev-
eral efforts to get In for the purpose of
comprising the destruction of the Pure Oil
Company, and securing information that
would lead to the destruction of the indie
pendent movement"
To defeat the Standard Company in its
hostile invasion" Of the independent COM
panies had cost about $4,000 in money and
much time and labor. Because" he said.
of the attempt of the Standard Oil Trust
to force themselves into these independent
organizations without invitation and against
the will of all the independent members it
was thought wise in the organization of the
Pure Oil Company to have at least half of
It's STOCK put into a voting trust in the
names of men of tried loyalty to the indie
pendent interests. The Pure Oil Company
is in no sense trust 1t is not organized
for the purpose of securing a monopoly. but
to prevent monopoly and preserve compe-
luton In the petroleum industry. Mr.. Arch
bold was therefore incorrect in stating that
the Pure Oil Company Is trust or that
any of the Independent producers or refiners
are members of a trust in the obnoxious
meaning monopoly"
Speaking of the profits of the Standard
Company, Mr.. Phillips said the dividends
gard to the surplus that they have made
more profit on every barrel of oil they pro-
duced than they paid the producer for it.
He estimated that the profits averaged 81
per barrel, and that in the aggregate they
amounted to about $500 100000
Mr.. Phillips admitted that some four or
five years ago he had called upon the
Standard Company authorities with the
view TO making combination, but said he
ne sn no9 zone so SINCE Inc op3eGt then was
piping and selling Of oil and to secure the
right to deliver oil in New York. The
Standard people had refused to make any
concession and had proposed in lieu to buy
the independent pipe line. There had never
been time when he would have been will
them, and the insnuation Of Mr.. Archbod
that his people lacked faith in the indie
pendent managers was, he said, "a gra-
tuitous insult to large body of business
men of high character"
Whe 5 leading lin his S Mr. Phillips lips. vas
his stock in the Pure Oil Company, and
replied that since his company had won a
footing in the German market in opposition
to the Standard Company he considered the
stock very valuable and would not be will
ing to take less than 100 per cent. profit
upon it. This, however he considered
only prospective value, and he considered
that whatever price might be paid by the
Standard Company In case it should be-
come the purchasers would be borne in
pendent companies who were oil producers.
Mr.. Phillips estimated the cost of the trans
portation of oil to the seaboard by tank
lines at not to exceed cents per barrel. He
said also, In reply to questions, that he
would not want to take the responsibility
of fixing the profits on great business
like the oil business. as the Standard COM
pany had done. Il would rather die poor"
he added.
MT. FdrQun3r, OF the commission, called
attention to the Pure Oil Company's arti-
cles of agreement designating the company
as "a trust" but Mr.. Phillips reiterated
that it was only "a voting trust" This
declaration brought from Mr.. Farquhar the
declaration that he had been startled up
on reading the paper. He said that he had
never in all his life known so perfect prep
aration for perpetual monopoly as was pro-
vided in this case 1t was even a more
complete trust than the Standard Oil or
whisky trust had ever been.
The afternoon session was executive. II
was decided that no witness could be heard
timony or to refute attacks upon a witnesses
personal character.
A report made to the controller of the
currency on the condition of the failed
Atchison National Bank. of Atchison, Kan,
shows that the capital and surplus Of the
bank have disappeared and that the af-
fairs of the bank generally are in a bad
way. Controller Dawes is hopeful how
ever, that the loss to the depositors will
not be very great
Secretary Gage. in letter to the Presi-
dent, has recommended that Appraiser
Wakeman, of New York, be not removed
from his office, and the recommendation
has been approved by the President.
To-day's statement of the condition OF the
treasury shows: Available cash balance,
s2Sl, s64.o42; gold reserve, 1888, ,5s1.
Homer A. James. of Linden, Ind. was to-
day appointed railway mail clerk.