The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1899-05-17
D. IS No CHEAPER
With the Oil Trust Than 1t
Would Be Without 1t
Mr.. MONNETT ASSERTS
Says Freight Rates are the
Key TO the Trust Citadel.
Mr.. MONNETT ASSERTS

Washington, D. c., May 16.-Attorney
General Frank S. Monnett of Ohio was be-
fore the industrial commission today as a
witness in the trust investigation. His
testimony related almost excIuIvely to the
STANFORD Oil trust, against which he has
been proceeding in his official capacity in
Ohio After detailing the particulars OF
the suits against the tandard company
brought on behalf Of the state Of Ohio,
Mr.. Monnett said the companies conpris-
ing the trust were so distributed as to
control all the operations pertaining TO
the production, transportation, refining
and delivery Of oil in Ohio, including even
its own telegraph system. Referring TO
this telegraph line, Mr.. Monnett said IL
had been developed so that it was ex-
changing business with the Western
Union company, acting as a common car
rier and making a cheaper rate to the
costituent members Of the trust than to
other customers, functions which We're
outside the corporate authoriy Of the trust.
He also complained Of the discrimination
in railroad rates in favor of the Standard
company tank lines, saying that it was
equal to 400 per cent against the ordinary
citizen.
Mr. Monett gave the figures showing
that the capitalization Of the twenty
companies comprising the trust amounted
in the aggregate to S102 $4,000 and the val
uation $50, 81, 00o Ell said the trust could
make its dividends whatever it desired,
a it controlled completely the retail price
Of oil. Mr. Monnett told of the distribu-
ton OF the stock Of the trust, saying that
the trustees held 4662S0 of the 700. 60 shares
and that John D. Rockefeller, as chair
man Of the trustees, held a majority Of
the stock thus distributed, giving him the
balance Of power, making practically a
one-man power. Mr.. Monnett said the or
iginal value Of the plant of the trust was
$97.250. 0o0. but this figure should now be
multiplied By five.
Mr.. Nonnett insisted that the way TO
controI the trusts was TO control the trans
portation companies, which, he thought, |
the courts could do. and if the courts could |
not do this. the charters of the roads |
should be taken from them. The attorney
general Of New Jersey could secure ac-
ton on this discrimination within sixty
days If he would take it in hand, the wit |
ness said.
Speaking Of the earnings Of the oil trust |
Mr.. Monnett estimated that the gross re-
ceipts were $12O, 900, 900 year on the Ohio |
product alone. and he said that all was
profit over 4 cents a gallon on refined oil. |
Re placed the value Of the earnings of the |
company per year as greater than the |
value Of all the form products Of the state.
At the afternoon session of the COM
mission Mr.. Monnett said, IN response to
a question from Commissioner Kennedy,
that he did not wish to enter upon a dis
cussion Of the charge that the Standard |
oil company had been guilty Of ATTEMPTS
~ bribery to prevent judicial investiga-
ton, as that matter was at present under ?
investigation by the Ohio supreme court.
These proceedings doubtless would bring
out all the facts and later he would sup
ply the data 10 the commission. He could,
however, testify TO the fact that the COM
pany had secured the service of railroad
agents ali over the country TO report upon
the movements of their rivals, and he
knew Of one instance in which the clerk
Of a rival concern had been employed TO
supply the details Of his employers oper-
arions to the STANDARD company. Also
the company Ia dts ''buzzards'' every
where. These were appointed to follow
the wagons of rivals and secure data Upon
which the company could operate When
rivals were driven out of field by re
ducing rates the prices instantly went Up
Mr. Monnett said ne understood that the
Standard company controlled from 60 to
81 per cent Of the crude oil product, but
as the company controlled the means of
transportation it was not necessary that
it should take the oil ont of the rock The
company was thus independent Of we'll
owners. He did not agree with the state
ment that the Standard company was en-
titled 70 credit for the reduction OF the
prices Of oil. believing this reduction TO be
due entirely to other agencies.
Referring to the necessity of controlling
the transportation agencies, as the avail
able remedy for the evils of which he COM
r aimed. Mr. Nonnett said that no course
would he too severe. if nothing else would
reduce the desired result. The states had
the remedy of depriving the railroad com
panies Of their charters. and this should
be reSorted to If they failed to treat all
equally fairly. In conclusion. Mr. Nonnett
said that suits had been begun in the
Ohio courts aeainst the brewers. the to-
ascco and Tin plate trusts and also against
the Central Traffic association.
There viii he no more witnesses before
the commission until next Friday.
s.,O-AF