The age-herald. [volume] (Birmingham, Ala.) 1897-1902, 1899-05-17
ATTORNEY GENERAL
MONETT TESTIFIES
Before Industrial Commission as
to Standard Oil Trust.
IMMENSE CAPITALIZATION
Of the Octopus Amounts to $1o2, $685.
O0o and 1t Controls Almost Ex-
clusively the Retail
Price of Oil.
IMMENSE CAPITALIZATION

Washington, May 16.-Attorney General
Frank S. Monet, of Ohio, was before the
Industrial commission today as witness
in the trust investigation. His testimony
related almost exclusively to the Standard
OIL trust, against which he has been pro-
ceeding in his official capacity in Ohio.
After detailing the particulars of the suits
against the Standard brought on behalf
of the state of Ohio, Mr.. Monet stated the
companies comprising the trust were so
distributed as to control all the operations
pertaining. to the production, transporta-
ton, refining and delivery of oil in Ohio,
including even its own telegraph system.
Mr.. Monett complained of discrimination
in telegraph and railroad rates in favor of
the Standard company tank lines, saying
that in the latter it was equal to 400 per
cent against the ordinary citizen.
Mr.. Monet gave the figures showing that
the capitalization of the twenty companies
comprising the trust amounted in the ag-
gregate to $1O2, 233 900, and the valuations
$121, 631 900. He said the trust could make
its dividend whatever it desired, as it con-
trolled completely the retail price of oil.
Mr.. Monett told of the distribution of the
stock of the trust, saying that the trustees
held 466,2SO of the 100000 shares, and that
Rockefeller, chairman of the trustees, he'd
majority of the stock thus distributed,
giving him the balance OF power making
practically one-man power. Mr.. Monet
said the original value of the plant was
$685. 900, but this figure should now be
multiplied by five. Mr.. Monet insisted
that the way to control the trusts was to
control the transportation companies.
which he thought the courts could do, and
if the courts could not do this, the charters
should be taken from them.
The attorney general of New Jersey
could secure action of this discrimination
within sixty days if he would take it In
hand, said the witness.
Speaking of the earnings of the oil trust,
Mr.. Monett estimated that the gross
ceipts were $12,OO0,O00 a year on the Ohio
product alone, and he said that all was
profit over cents a 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.
At the afternoon session of the commits
sion Mr.. Monnett said in response to a
question that he did not wish to enter upon
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 present
under investigation by the Ohio supreme
court. These proceedings would bring out
all the facts and later he would supply the
data to the commission. He could, how
ever, testify to the fact that the company
had secured the service of railroad agents
all over the country to report upon the
movements of their rivals, and he knew of
one instance in which the clerk of a rival
concern had been employed to supply the
details of his employers operations to the
Standard company. Also the company had
its "buZZard s'' eyerywhere These were ap-
pointed 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 imme-
diately went up.
Mr. Monett said he understood that tho
Standard Oil company controlled from 80
to 81 per cent. of the crude oil product, but
as the company controlled the means of
transportation it was not necessary that it
should take the oil out of the rock The
company was thus Independent of well
owners. He did not agree with the senti-
ment that the Standard company was en-
titled to credit for the reduction of the
price of oil, believing this reduction to be
due entirely to other agencies.
Referring to the necessity of controlling
the transportation agencies as the available
remedy for the evils of which he COM
planned Mr.. Monet said that no course
could be too severe, If nothing less would
produce the desired effect. The states had
the remedy of depriving the railroad COM
panies of their charters and this should be
resorted to If they failed to treat all
equally fair In conclusion, Mr.. Monett
said that suits had been begun in the Ohio
courts against the brewers 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.