The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1899-05-19
GET At THIN RAILROADS
Through Them Standard Oil
Trust Can Be Contt oiled.
PLAN SUGGESTED BY MoNNETT
Appeared as Witness Before the Indus
trial Commission - Seize Railroads
Charters If Necessary-Okio Attorney
General Attacked the Standard.

WASHINGTON, May 17.--Attorney Gen.
eral Frank S. Monnett of Ohio was be-
fore the industrial commission as a wit
ness in the trust investigation. His
testimony related almost conclusively to
the Standard Oil rust, against which
he had been proceeding in his official
capacity in Ohio. After detailing the
particulars of the suits against the
Standard company, brought on behalf
of the state of Ohio, Mr.. Monnett said
the companies comprising the trust
were so distributed as to control all the
the operations pertaining to the produc-
tion, transportation, refining and de-
livery of the products of the oil wells
in Ohio, including even its own tele-
graph system.
Referring to this telegraph line, Mr..
Monnett said it had been developed so
that it was exchanging business with
the Western Union company, acting as
q common carrier and making q cheaper
rate to the constituent members of the
trust than to other customers, functions
which were outside the corporate auth
ority of the trust. He also complained
that the discrimination in railroad rates
in favor of the Standard company tank
lines, saying that it was equal to 400
per cent against the ordinary citizen.
Mr.. Monnett gave figures showing
that the capitalization of the 90 COM
panies comprising the trust amounted
in the aggregate to $102, ,233, 900 and
the valuation $121, 1881, 900. He said
the trust could make its dividends
whatever it desired, as it controlled
completely the retail price of oil.
Mr.. Monnett told of the distribution
of the stock of the trust, saying that
the trustees held 466, ,280 of the 100000
shares and that John d. Rockefeller, as
chairman of the trustees, held q ma
jority of the stock thus distributed,
giving him the balance of power, max
ing practically a one-man power. Mon
nett said the original value of the plant
of the trust was $97, $780, 900, but this
figure should now be multiplied by five.
Mr.. Monnett insisted that the way
control the trust was to control the
transportation 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 regulation of this dis
elimination within 90 days if he would
take it in hand" said the witness.
Speaking of the earnings of the oil
trust Monnett estimated that the gross
receipts were $l20,000,000 on the Ohio
product alone, and he said that all was
profit over cents gallon on refined
oil He placed the value of the COM
pany per year as greater than the value
of all the farm products In the state.
At the afternoon session of the COM
mission Mr.. Monnett said in response
to a question from Commissioner Ken
nedy that he did not wish to enter on a
discussion of the charge that the Stand
ard Oil company had been guilty of at
tempts at bribery to prevent judicial in
vestigation, as that matter was at pres
ent under investigation by the Ohio su-
preme court These proceedings would
doubtless bring out all the facts and
later he would supply the data to the
commission. He could, however, testi-
fy to the fact that the company had Sc
cured the service of railroad agents all
over the country to report on the move
ments of their rivals, and he knew of
one instance in which the clerk of a
rival concern had been employed to sup
ply the details of his company's oper-
ations to the Standard company. The
company had its "buzzards" every
where. They were appointed to follow
the wagons of rivals and secure data
upon which the company could operate.
When rivals were driven out of a field
by reducing rates the prices immedi-
ately went up.
Mr.. Monnett said he understood the
Standard company controlled from 80
to 81 per cent of the crude oil product,
but as the company controlled the
means of transportation it was neces-
sary that it would take the oil out of
the rock. The company was thus inde-
pendent Of well owners. He did not
agree with the statement that the
Standard company was entitled to credit
for the reduction of the prices of oil,
believing this reduction to be due en-
tirely to other agencies.
Referring to the necessity of controll-
ing the TRANSPORTATION agencies, as the
available remedy for the evils of which
he complained, Mr.. Monnett said that
no course could be too severe, if moth
ing less would produce the desired re-
suit.
The states had the remedy of depriv-
ing the railroad companies of their char
ters and this should be resorted to if
they failed to treat all equally fair. In
conclusion, Mr.. Monnett said that suits
had been begun in the Ohio courts
against the brewers, the tobacco and
tinplate trusts and also against the Cen-
trail Traffic association.
There will be no more witnesses be-
fore the commission until next Friday.