The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-05-17
Mr.. MONNETT ON TRUSTS
OHI0's ATTORNEY GENERAL SCORES
THE STANDARD OIL
He Explains It's Methods to the IN
dustrfal Commission and Tells
How 1t May Be Curbed.

WASHINGTON, May 16-Attorney Frank
3. Monnett. of Ohio, was before the indus
trial commission to-day as a witness in the
trust investigation. His testimony related
almost exclusively TO the Standard Oil trust,
against which he has been proceeding in his
official capacity in Ohio. In detailing the
particulars In the suits against the Stand
ard, brought on behalf OF the State of Ohio.
Mr. Aonnett said the companies comprising
the trust were so distributed as to control
all the operations appertaining to the pro-
dactiou, transportation, refining and deliv-
cry Of the products OF the oil wells in Ohio,
including even its own telegraph system.
Referring to this telegraph line, Mr.. Mon
1ett said 1t had been developed so that It
was exchanging business witt the Western
Union Company. acting as a common car
Tier and making a cheaper rate to the con-
Bttuent member of the trust than to other
customers. functions which were outside the
corporate authority Of the trust He also
complained that there was discrimination In
railroad rates in favor of the Standard Com
pany 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 twenty companies
comprising the trust amounted in the ag-
gregate TO sio2. $4,000. and the valuation
$121. SCI. 900. He said the trust could make it's
dividends whatever 1t desired, as 1t con-
trolied completely the retail price of oil.
Mr.. Monnett told of the distribution of the
stock OF the trust, saying that the trustees
held 466. go of the 1900 shares and that
Rockefeller. as chairman of the
trustees. held a majority of the stock thus
distributed. giving him the balance of pow
Or. and making, practically, one-man power.
Mr.. Monnett said the original value of the
plant of the trust was $7. 10000, but this
figure should now be multiplied by five.
Mr.. Monnett insisted that the way to con-
troll the trusts was to control the Transport
tation companies, which, he thought, the
courts could do. and IL the courts could not
do this. the charters OF the roads should
be taken from them. The attorney general
of New Jersey could secure action on this
discrimination within sixty days If he would
take 1t in hands. said the witness.
Speaking Of the earnings of the oil trust
Mr.. Monnett estimated that the gross re-
ceipts were s12o. 900 coo a year on the Ohio
product alone. and he said that all was
profit over 4 cents a gallon on refined oil.
He placed the value of the earnings of the
company per year as greater than the val
ne OF all the farm products OF the State.
At the afternoon session Mr.. Monnett
said, in response to a question from Com
missioner Kennedy, that he did not wish
10 enter on a discussion of the charge that
the Standard Oil Company had been guilty
Of attempts at bribery TO prevent judicial
investigation, as that matter was at pres
ent under investigation by the Ohio SUI
preme Court. These proceedings doubtless
would bring out all the facts and later
he would supply the data TO the commits
SION He could. however, testify TO the fact
that the company had secured the service
Of railroad agents all over the country 10
report on the movements of their rivals.
and he knew of one Instance IN which the
pioyed to supply the details of his employ
erts operations to the Standard Company.
Also the company had its "buzzards" every
where. These were appointed to follow the
wagons of rivals and secure data on which
the company could operate. When rivals
were driven out of a field by reducing rates
<he prices immediately went up.
Mr.. Sonnett said he understood that the
Standard Company controlled from 80 to 81
per cent. of the crude oil product. but as
the company controlled the means of trans
take the oil out of the rock. The company
was thus Independent Of well owners. HI
did not agree with the statement that the
standard Company was entitled TO credit
for the reduction OF the prices OF oil. be-
1ieving this reduction TO be due entirely 10
other agencies.
Referring TO the necessity of controlling
the transportation agencies. as the avail
able remedy for the evils Of which he COM
planned. Mr. Monnett said that no course
could be too severe, IL nothing else would
produce the desired results. The States had
the remedy Of depriving the railroad COM
panleS OF their charters and this should be
resorted to II they failed to treat all equally
fair. In conclusion Mr.. Monnett said that
suits bad been begun In the Ohio courts
oEatnst III brewers. the tobacco and tin
pate trusts and also against the Central
Yraf1c Association.
There will he no more witnesses before
the commission until next Friday.