The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-05-12
TRUSTS HURT LABOR
so SAID JAMES w. LEE, OF PITTS
BURG, TO THE INDUSTRIAL
COMMISSION
STANDARD OIL MONOPOLY

Tendency Was to Increase Rather
Than to Diminish Prices-OiI Was
Made Cheaper Only When 1t Was
the Desire of the Trust to Starve
Out a Rival - Sample Cases Are
Cfted-ActiOn Deemed Necessary.
WASHINGTON, May 1.-THE Industrial
commission today heard the first wit
ness to be called in connection with it's
inquiry into the operations of trusts The
witness was James w. Lee, of Pittsburg,
attorney for several pipe line and oil COM
panies, and formerly a state senator of
Pennsylvania. Mr.. Lees testimony was
directed especially against the Standard
Oil company.
Speaking Of the effect of trusts upon
the consumer, Mr.. Lee said the tendency
was to increase prices until they became
extortionate. Trusts were organized to
secure a monopoly, and when this was Sc
cured by closing up rival establishments,
they were In position to fix prices, which
were, according to his observation, gen.
orally increased In order to permit divi-
dends on watered stock.
Mr.. Lee expressed the opinion that the
Standard company was still getting re-
bates from the railroad companies, de-
spite 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 100 indie
pendent companies. He knew of several
refineries which had been purchased at
high prices by the Standard Oil company
and then had been shut down. He had
also heard that men had received a bo-
nus to remain idle, but he. had no per-
sonaI information on this subject.
He further expressed the opinion that
the counties in Pennsylvania which had
produced all the oil turned out in that
state, amounting to 300 100000 barrels,
were worse off for it's output. Still there
were some wells which were largely re-
munerative, due to their high degree Of
product1VeneSS. AS a matter of fact,
however, many of the wells produced
very little. OF the $4,000 wells in opera
ton $4,000 produced less than a half a
barrel a day each. He thought if there
had been fifty refiners, instead Of the
Standard company, the market would
have been just as extensive, the consum-
er would have gotten his oil as cheaply
and the producer would have been much
better off.
Where has the balance gomez" asked
Mr.. Livingston
1T Think the witness replied, "the
Standard Oil company could explain that.
The understanding is that 1t has realized
about $500, 000, 000.''
Mr.. Lee was quite confident that the
general effect of trusts was injurious to
labor. The effect was to deprive laborers
of competition, of chance for employ
ment when thrown out of work, and to
make them subservient and poorer citi-
zens. Speaking specifically of the Stand
ard company's treatment of it's employees,
he said they were well paid and GER
tain class of them received very high
salaries. Still, the ultimate effect of any
monopoly must be injurious to labor
AS a means of prevention of trusts Mr..
Lee suggested law making destructive
competition a criminal offense. He also
suggested that the capital of all corpora
tons, except those of a public or quasi
public nature, should be limited to
s., 000, 900.