Akron daily Democrat. [volume] (Akron, Ohio) 1892-1902, 1899-05-12
THE TRUSTSATTACKGD
Lee Said They Hurt the Con-
sumer and Laborer.
SCORED STANDARD OIL COMPANY.
Fold Industrial Commission of Fight of
Independent Companies In This Coun-
fry and Abroad-Favored Law Re
stricting capitalization, Etc.

W ASHINGTON, May l2.-lne indus
trial commission heard Hon. James W.
Lee of Pittsburg, attorney for several
pipe lines and oil companies and for
merly state senator from Pennsylvania,
whose testimony was directed especially
against the Standard Oil company.
Speaking of the effect of trusts on
the consumer Mr. Lee said the tendency
was 10 increase prices until they became
extortiulrtte. Trusts We're organized to
secure monopoly, and when this was
secured by closing up rival establish
meDts they were i'll position 10 fix
prices. which We're, according ts his
observation, generally increased in
order 10 permit dividends on watered
stock. This had been mainly true OF
the Standard Oil company. AS an il
lustratioD, he said that when the Pure
Oil company, in which the witness is
interested, went into the field in New
York state in 1896 they found thc Stand
ard selling oil at 91s cents gallon.
The price was almost Immediately re-
duced TO 5la cents and had remained
there since, the object being 10 drive
OUT lIlt IlNdl IIIc AISt pIltt was III
urdinately high, but the latter was
ruinously low, and while the independ-
ent company had met the reduction it
had done SO at loss. He thought the
competition had resulted in saving of
fully S3,000,0u0 TO the people of Greater
New York. The same condition of
affairs existed at other competitive
points.
Mr.. Lee expressed the opinion that
the Standard company was still getting
rebates from the railroad companies de.
spite the law and he thought this was
accomplished by paying exorbitant
prices for fabrication oil.
He estimated that the Standard com.
pany has within the past 20 years alb
sorbed about 100 independent COM
panies, but that the companies with
which he was connected had refused TO
sell at an advance of II per cent in cost
when they were about TO be closed out
by the sheriff. This refusal had been
dictated largely by sentiment. Now,
however, the independent companies
Were doing il profitable business. He
knew of several refine1les which had
been purchased at high prices by the
Standard company and then had been
shut down. He had also heard that
meIi had received bonus to remain
idle, but he had no personal information
on this subject.
Mr.. Lee said the Standard Oil COM
pany had made ap effort to prevent the
extension of the business of the inde-
pendent companies to foreign markets
by buying up the tankage at given
points and by selling at lower prices
than prevailed even in the United
States. Still the independent COM
pluies We're able to compete abroad
largely because in Great Britain and
Germany, and in some other countries,
competition was preserved to a greater
extent than i'll the United States. In
Germany no one was allowed TO do
business 1T Il loss. The profits made
abroad We're what enabled the inde-
pendent companies to continue i'll exist
ence, as the business in this country
alone WAS Improbable.
At the afternoon session he gave fur
ther testimony. He said the aim of the
trust was to get a complete monopoly of
business, fixing the price as it may
please and leaving little or no profit to
the producer. In illustration, he said
the Standard Oil company had main
tanned the price paid for crude oil at IS
cents per barrel for year, and that for
the ten years prior to 1895 the price paid
had averaged only so cents per barrel,
whereas the average cost of production
was not less than 81. He further ex-
pressed the opinion that the counties in
Pennsylvania which had produced all
the Oil turned out in that state, amount
ing to about S00,000,00O barrels, We're
worse off fer its output.
He thought if there had been 80 refin-
ers instead of the Standard company
the market would have been just as ex-
tensive, the consumer would have got
ten his oilas cheaply and the producer
would have been much better Off
"Whefe has the balance gomez" asked