The Portland daily press., 1899-05-17
INVESTIGATING TRUSTS.
Industrial Commission Learns
About Standard Oil.
witness Describes The Concerns Proht
As Enor nous.

Washington, May 16-Attorney Gen.
eral Frank S. Monnett OF Ohio was be-
fore 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 proceeding in his official ca
pacity in Ohio. After detailing the par
ticulars of the suits against the Stan-
dard company, brought on behalf Of the
state of Ohio, Mr.. Monnett said the COM
panies comprising the trust were 90 dis
tributed as to control all the operations
pertaining to the production, transporta.
tion, refining and delivery of the products
of the oil wells In Ohio, including even
its own telegraph system. Referring to
this telegraph line, Mr.. Monnet5 said 1t
has been developed that it was exchang-
ing business with the Western Union
company, acting as common carrier and
making cheaper rate to the constituent
mem bers of the trust than to other GUS
toners. functions which were out side
the corporate authority of the trust. he
also complained of the discrimination in
railroad rates in favor of the Standard
company tank lines, saying that 1t was
equal to 400 per cent against the ordinary
citizen.
Mr.. Monnett gave the figures showing
the capital stock of the twenty companies
comprising the trust as well as their val
uation, showing the capitalization to
amount in the aggregate to slos, so4,ooo
and the valuation $l2l, ,631, ,OOO de said
the trust could make its dividends what
ever it desired them to be,as it controlled
completely the retail price of oil:
Mr. Monnett told of the distribution or
the stock of the trust, saying that the
, trustees held 466, $50 of the 200. 600 shares
and that Mr.. John d.. Hockefelier az
chairman of the trustees held a majority
of the stock thus distributed, giving him
the balance OF power.
"This gives him absolute, individual
oontral," remarked MIR. North, to which
Mr.. Monnett replied:
"Yes, 1T is practically one man power.
He with his henchman has general con.
troll and in some Instances he has abso-
lutte control in himself. He can fix his
own salary, which is, l understand, $780,
| 600 a year as chairman of the board of
| trustees, and can do various other
| things"
He said the original value of the plant
of the trust was $97, $50. COZ, but this figure
should now be multiplied by tive.
MIR. Monnett Insisted that the way to
control the trusts was to control t1e
transportation companies which. ne
1 tnOuRNb, lut COuIbb oOolh W. u''N - Vs.
courts could not do this the charters OF
the roads should be taken from them.
| The government had no more right 10
permit discrimination or other abuses by
the railroad companies in the interest OF
monopolies than it had to permit coun-
terfeiting. ''The attorney general of New
Jersey could secure regulation OF tnls
discrimination within 60 days II he
would take it in hand, said the Wit
| ness.
Speaking of the earnings of the oil trust
Mr.. Monnett estimated that the gross
receipts were Sl20, 00,000 year on the
Ohio product alone, and he said that all
was profit over four cents 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
question from Commissioner kennedy
| that he did not wish to enter upon dis
cussion of the charge that the Standard
Oil company had been guilty OF attempts
at bribery to prevent judicial 1nyestlga-
| tion, as that matter was at present under
investigation by the Ohio supreme court
He could however, TESTIFY TO the 1aco
| that the company had secured the servl-
ces of railroad agents all over the country
to report upon the means OF their rivals,
and he knew of one instance In which
the clerk of rival concern had been en-
ployed to supply the details OF his en-
ployes' operations to the Standard COM
pany. Also the company had Its 'buz-
| yards everywhere.