The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-05-17
Attorney General Monnett Testifies
as to Standard Oil
FIXES OWN DIVIDENDS
IN FACT RUNS THINGS TO SUIT
ITSELF.
Interesting Information Given Be
fore the Industrial Commission as
to How the Great Combine Oper-
ates In the State of Ohio-Im-
mense Capitalization of Concern.

Washington, May 16.-Attorney Gen
eral Frank S. Monnett of Ohio was be
fore the industrial commission today a
a witness in the trust investigation Hi
the Standard Oil trust, against which
he has been proceeding in his officia
capacity in Ohio.
After detailing the particulars of tn
suits against the Standard compan.
brought on behalf of the state of Ohio
Mr.. Monnett said the companies com
prising the trust were so distributed a!
to control all the operations pertaining
to production, transportation, refining
and delivery of the products of the oil
wells in Ohio, including even its OWL
telegraph system. Referring to thi:
telegraph line. Mr. Monnett said it hac
been developed so that ii was eXchang
ing business with the Western Unior
company. acting as a commercial car
rier and making a cheaper rate TO thf
constituent members of the trust thar
to other customers, functions which
were outside the corporate authority
of the trust. He also complained of the
discrimination in railroad rates in favor
of the Standard company tank lines
saying il was equal to 400 per cent
against the ordinary citizen.
Some Large Figures.
Mr.. Monnett gave figures showing
that the capitalization of the companies
the trust amounted in the
aggregate to S102 ,233 900, the valuation
S121, 631 ,000 He said the trust could
make its dividends whatever it desired,
as it controlled completely the retail
price of oil.
Mr.. Monnett told of the distribution
of the stock of the trust, saying that
the trustees held 466. $50 of the zoo, 600
shares, and that John D. Rockefeller,
as chairman of the trustees, held a ma
iority of the stock thus distributed,
giving him the balance of power, MAX
ing practically one-man power.
Mr.. Monnett said the original value
Of the plant of the trust was S91, 25O, 600,
but this figure should now be multi
piled by five. He insisted that the way
to control the trusts was to control the
companies. which ne
thought the courts could do, and If the
courts could not do this. the charters
IF the roads should be taken from
them. The attorney general of New
Jersey could secure evidence of this
discrimination within sixty days if he
would take it in hand, the witness SAID.
Earnings of the Trust.
Speaking of the earnings of the oil
rust, Mr.. Monnett admitted the gross
-eceipts were s120 $1,000 a year on the
ohio product alone, and he said that all
vas profit over cents a gallon on re-
ined oil. He placed the value of the
of the company per year as
greater than the value of all the farm
products of the state.
At the afternoon session OF the COM
mission Mr. Monnett said, in response
o a question from Commissioner Ken
ledy, that he did not wish to enter
lpon a discussion of the charge that
he Standard Oil company had been
.uilty of attempts of bribery TO pre-
ent judicial investigation, as that
natter was at present under 1nVeStiga-
ion by the Ohio supreme court These
doubtless would bring out
II the facts, and later he would sup
ly the data to the commission.
He could. however, testify to the fact
hat the company had secured the serv-
,e of railroad agents all over the coun-
nv to report upon the movements of
heir rivals, and he knew of one in
lance in which the clerk of a rival
oncern had been employed to supply
he details of his employers operations
0 the Standard company. Also the
ompany had it's "buzzards" every
here. These were appointed to follow
he wagons of rivals and secure data
pom which the company could operate.
When rivals were driven out of field
V reducing rates, the prices immedi-
tely went up.
Company Is Independent.
Mr.. Monnett said he understood the
tandard company controlled from 80
, 81 per cent of the crude oil produced,
ut as the company controlled the
leans of transportation, it was not
ecessary that it should take the oil
ut of the rock The company was
lus independent of wellowners. He
id not agree with the statement that
lie Standard company was entitled to
-edit for the reduction of the prices of
i, but believed this reduction to be
ne entirely to other agencies
Referring to the necessity of control
ne the transportation agencies as the
valuable remedy for the evils of which
2 complained Mr.. Monnett said that
D course would be too severe if moth
g else would produce the desired re-
lit. The states had the remedy of de-
irving tn railroad companies of their
iarters. and this should be resorted
if they failed to treat all equally
irly.
In conclusion. Mr. Monnett said suits
Id been begun in the Ohio courts
yainst the BREWERS. the tobacco and
n plate trusts, and also against the
entral Traffic association.
There will be no more witnesses be-