The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1899-05-12
THE OPERATIONS OF TRUSTS
TESTIMONY BEFOR THE NATIONAL L
IND DUSTRI4L COMMISSION.
Hon. James w. Lee, of Pittsburg, am
Attorney for Independent OIL Com
panfes Quite Sure the General Effect
of Trusts Is Injurious to Labor
Thrusts at Standard OIL Company.

| Thrusts at standard OIL Company.
! Washington, May 1.-THE industria
commission to-day heard the first wit
| ness to be called in connection with its
inquiry into the operations of trusts
The witness was Hon James W. Lee OF
Pttsburg, attorney for several pipe line
and oil companies and formerly state
senator of Pennsylvania. Mr.. Lees tes-
timony was directed especially against
the Standard Oil company. Speaking of
the effect of trusts upon the consumer.
Mr. Lee said the tendency was to in
crease prices until they become extor-
Tomato Trusts were organized to Sc
cure a monopoly, and when this was
ments they were in position to fiG prices,
which were, according to his observa-
ton, generally increased in order to
permit dividends on watered stock. This
had been eminently true of the STAN
dard Oil company. AS an illustration
he said that when the Pure Oil COM
pany, in which the witness is interested,
went into the field in New York, in '96,
they found the Standard selling oil at
Q 1-2 cents a gallon. The price was al
most Immediately reduced to 1-2 cents
and had remained there since, the object
being to drive out the rival The first
price was inordinately high, but the
latter was ruinously low, and while the
independent company had met the re-
duction it had done so at loss. He
thought the competition had resulted in
a saving of fully 100000 to the people
of Greater New York. The condition of
points.
Mr.. Lee expressed the opinion that
the Standard Oil company was still get
ting rebates from the railroad companies
despite the law, and he thought this was
accomplished by paying exorbitant
prices for lubricating OIL He estimated
that the Standard company had within
the past twenty years absorbed about
one hundred Independent companies
but that the companies with which he
was connected had refused to sell at
an advance of II per cent. in cost when
they We're about to be closed out by the
sheriff. This refusal had been. dictated
largely by sentiment. Now, however
the independent companies were doing a
profitable business. He knew of several
refineries which had been purchased at
high prices by the Standard company
and then had been shut DOWN He had
also heard tl:at men had received a
bonus to remain idle, but he had no per-
sonal information on this subject
Mr.. Lee said the Standard Oil Co.
had made an effort to prevent the ex-
tension of the business of the indepen-
dent companies to foreign markets by
buying up the tankage at given points
and by selling at lower prices than pre-
vailed even in the United States Still
the independent companies were able
to compete abroad largely because in
Great Britain and Germany and in
some other countries, competition was
preserved to a greater extent than in |
the United States. In Germany no one
was allowed to do business at loss.
The profits made abroad were what |
enabled the Independent companies to |
continue in existence, as the business
in this country alone was unprotitable.
Mr., Lees testimony at the afternoon |
session of the commission was devoted |
% the effect Of trusts upon the produce
sr and upon labor, dealt ,g again exclu-
sively with the oil trust. He said the
aim of the trust was to get a complete
of the business, fixing the
prices as it might please and leaving
title or no profit to the producer The
Illustration, he said, that the Standard
)il company had maintaire1 the pi'ce
laid for crude oil at 65 cents per bar
'el for year and that for ten years
,rior to 1926 the price paid had aver
ged only so cents per barrel, whereas
he average cost of reduction was not
ess than 81.
Mr.. Lee was quite confident that the
'eneral effest of trusts was injurious
o labor. The effect was to deprive la
orer of competition. of chance for en-
oyment when thrown out of work,
nd to make them subservient and poor
r citizens. Speaking specifically of the
tandard Oil company's treatment of
IS employees, he said that they were
,6ll Dd1u anu II Ger ldlIl CLASS Vi llltIII .
eceived very high salaries. Still, the
ltimate effect of any monopoly must
e injurious to labor
As a means of prevention of trusts, ,
Ir. Lee suggested a law making de-
tructive competition a criminal Of
anse. He thought the fear of impris
nment would intimidate some of them.
Tothing had done so much as destruc-
We competition to prevent progress and
airness The laws could be passed by
ne states, and in case of prosecution
rices charged for years could be used
5 evidence He would also suggest ,
1at The capital of all corporations, ex-
ept those OF public or quasi-public
ature, should be limited to 81, 100000. '
e thought that something of this kind
as necessary and that if a remedy
as not found the country would be
lined by combination sof capital detri-
entul to the public interests. Under
le present condition personal ambition ,
as stifled and many men were being
apt out of business because of the eX-
tence of these combinations.
Lnyyyer,s Wife Kills Herself