The free lance. (Fredericksburg, Va.) 1885-1926, 1899-05-20
The Standard Oil Trust.

II uNN NNlO iilt NhtJ'hN W 49,
by the Industrial Commission at Wash
ington. Frank Monnett, the attor-
ney general Of Ohio who, during the
past few months, has been fighting
the Standard Oil Company In that
state, Was on the stand ansing the
greater part Of the day. by reason of
his official position Mr.. Monnett has
been able to secure much dcta-ed in
formation concerning the practices of
the company against which he testi-
fled.
The next suit was brought against
the Standard OIL Company, of ONO.
In which it was charged that the or
ganiZltiOn was constituent part oi
the Standard OIL Trust The supreme
court Of Ohio. as result Of the suit.
issued a decree against the company.
restraining it from doing business IN
the State unless 1t severed lts cornec-
tion with the trust
The connection between the Standard
Oil Company Of Illinois and several
other oil companies in the State could
not be plainly established aud indie
pendent suit was brought against them
Among the companies affiliated with
the trust against which suits were
brought were the onto Oh Company.
the Solar Refining Company. and the
Buckeye Pipe Line. The charge was
that Of violating the public policy Of
the State by being affiliated with inter
state and State combines.
In November, 1898. another suit
against the Standard Oll Company q
Ohio was filed. charging it with con.
tempt Of the first decree issued 10y the
supreme court in not breaking its con-
nection with the Standard OIL Trust.
The case is now pending.
In the shipment Of oil by railroad or
pipe line the Ohio combination charges
the independent producers rs much as
400 per cent more than the affiliated
companies pay for the shipment of
their products. The power Of the
combine. said the witness, Giles in
its ability II control the means OF
transportation and the discrimination
which it practices against outside con-
Germs. -
BY this means competition is effect
fully stihed The building Of pipe
line along a railroad which carries
large quantities Of crude oil does not
lower the cost of transportation. Al
though oil can be shipped by pipe line
much more cheaply than by rail- the
Standard uniformly keeps up prices.
The Standard Oil Company Of Ohio
was organized on the 10th of June, 1870,
with a capital stock Of $1,000, 900. Al
different periods since that time the
capital stock has been increased until
it now amounts. to sl02, 337, 600.
At the order of the court demanding
that Secretary SquiIes. Of the STANDARD
Oil Company, produce the books OF the
company showing how the trust GER
tificates are maintained, the officers OF
the.company refused, giving an evasive
answer Evidence was subsequently
procured by the attorney general to
show that the books had been burned.
The officers maintained that this is not
true. but Mr.. Monnett said that it is
a reasonable supposition, in view OF the
evidence introduced that the books
were destroyed. In speaking of. the
effect of the order of the court declar-
ing it to be doing business in violation
of the trust law Of the State. the wit
ness said;
THE decree has not bothered them l.,
except in bookkeeping. "
John d. Rockefeller, the witness
thought, con trolls alone the affairs Of
the Standard Oil Company. From his
trust certificates Of the Standard Oil
Company Of Ohio he receives an in-
come Of $l9l. 700 a year, and as pres
ident Of the company he receives $50 =,
600 per year His interests are so dis
tributed that he can control the affairs
of the trust without the aid OF his con-
federates There are only seven shares
of the Standard Oil Oompany's stock
held by persons outside of the COM
bine.
Since 1882 the Standard Oil Company
of Ohio has discharged at least two
thirds OF the men employed by it, The
refining plants at Marietta were practi-
cally dismantled. The plant Of the
Argand Refining Company, Of Parkers-
burg, W. Va, was bought by the COM
bine. By agreement the plant will re-
m ,in idle for ten or twelve thousand
dollars year. The power of
the Standard Oil Company aud other
corporations lies in their ability to
control transportation. Although the
interstate laws forbid discrimination
in freight rates, the Standard has Sc
cured rates from the Southern:shipping
points in Ohio to New Orleans which
are much lower than those granted to
independent producers.
The agreements with the railroad
companies are not direct, but an in
direct contract is entered into. by
which the law is evaded.
The witness expressed himself very
strongly against the extortionate meth
ods employed by the Standard Oil Com
pany and other corporations. He re-
ferred in especially strong terms to the
use made by corporations Of State and
national laws to impose upon the pub
lie. He thought it just as unlawful
fo nnaEo TmOnaV DV