Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-05-11
Testimony Given Today Before the
Industrial Commission.
STANDARD OIL COMPANIES METHODS
Efforts to Crush Out Independent
Organizations.
2 ROFITS TIL ACCR z


the hearing of witnesses from the Standard
Oil Company until September. This was
done in compliance with the wishes of Mr..
John d. Rockefeller. who has made ar
rangements for a visit to Alaska, and wish
eS to be present and testify. 1t is expected
the investigation of the sugar trust will be
postponed until next month. as Prof. jerks,
who is assisting the commission in the work
OF examining into the trusts. wants further
time for the collection of data. Henry o.
Havemeyer, James H. Post. John Arbuckle
and Claus Dosher of New York, who We're
to be placed on the stand in the next few
days. have been notified of this postpone
ment. Messrs Arbuckle, Dosher and Post
are antitrust witnesses.
Some Interesting Charts.
State Senator James w. Lee of Pennsyl
vania appeared before the commission to-
day, ii being understood that his testimony
would be in opposition to the trusts. The
commission met in the large board room
in order to accommodate the larger attend
anCe that was anticipated. The popular in
terest in the trusts was shown by the con-
siderable number of newspaper representa-
tives present in addition to a few others
who dropped in to witness the proceedings.
Several large charts were displayed on the
walls of the board room. showing in graphic
form history of prices of petroleum and
of sugar for series of years; also showing
in brief the character of United States and
state laws bearing on this subject. The
United States law applying to the District
of Columbia and territories makes combi-
nations In restraint of trade a misdemea-
nor and authorizes the district attorney to
institute proceedings in equity to restrain
viola tons of this law. Circuit courts of
the United States have jurisdiction in such
cases. and courts of equity may enjon
violations of this law The penalty on con-
Yiction Is not to exceed a years imprison-
ment, and If imports are concerned, the
term Is not to be less than three months
Individual fines are not to exceed s., 900 or
Imprisonment. or both. Persons damaged by
violations of this law may recover treble
damages. costs of suit and reasonable at
torney fees. Property which is the sub
1ect of conspiracy in transportation from
one state to another. or to a foreign coun-
try. shall be forfeited to the United States.
These valuable charts were the work of
Prof ]. w. jerks of Cornell University
who Is an expert assistant to the commits
sion in its investigation of the trusts
When the examination opened the large
room was quite well filed Members of the
commission present We're: Vice Chairman
Phillips, Senator Daniel, Representative
Livingston of Georgia, Representative OF
jen and ex-Lieut Gov. Andrew L. Harris
of Ohio. S. n. D. North, John NJ Fardu-
har. Charen j. Harris, NJ D. Ratchford and
John l.. Kennedy.
Influence of Trusts.
Mr.. Lee stated that he was a practicing
attorney and interested for independent
pipe lines and oil companies His testi-
mony he said, would cover the questions
of the influence of trusts on consumers,
producers and on labor, and remedies pro-
posed for their control. He gave a history
of the growth of pipe line companies in
pennsylvania, they having grown from very
small concerns. The early efforts to estab-
IIGl TNir li,,A. g,, ID
hnaliy carried in 1888, was recounted,
The oil company, he said. had fought the
EFFORTS 10 establish pipe lines, because they
could better control the product If trans
ported by rail by securing advantageous
rates. and they regarded the pipe lines as i
means for lessening their monopoly. In
order to defeat the bill allowing the pipe
II: - to be laid, they had circulated a
dodger saying such lines would bring death
under the very hearthstones of the farmers
would destroy their orchards and be accom-
panied by dire results generally. But the
bllI was finally passed, and in twenty years
not Il sing e life had been lost by the trans
portation of oil by pipe lines. although
many lives had been lost previous to that
time. These efforts to prevent the passage
OF the bill were used by the Standard Oil
Company and the Pennsylvania Railroad
Company, and they used all the means
that are generally used in preventing le:sis-
lation. especially in the Pennsylvania leg
islature- In 1883 they practically controlled
rebates for all oil transported, and these
rebates were so great that no one else
could stay in the business. This rebate
amounted to eight or ten millions d year.
They now control So to 90 per cent of the
transportation of oil and there have been
times when they have controlled it all
Raises Rather Than Reduces Prices
L believe there is very general opinion
sought To be created by the trusts that
their economy of manufacture tends to re-
duce the prices of the manufactured article
10 the consumer. | think that is, in fact
wholly erroneous; that instead OF reducing
the price to the consumer they increase
this price until they become actually ey-
tprtlonate one would suppose that that
would be the case from the mere fact that
these trusts are organized for the purpose
or securing a complete monopoly of the
business in which they are engaged They
permit no one else, if they help it, to
engage in the same business. They nav
enormous prices for other establishments in
the same line of business for the express
purpose of closing them, and thus obtain
complete monopoly of the business. When
that has been approximately accomplished
they have absolute control of the fixing of
prices to the consumer. They cannot be
trusted to fix the prices to the consumer
That the Standard Oil Company has
charged extOrtionate prices 1t will be very
easy to prove by comparing prices they
charge whore they have no competition
with prices where they have competitions"
Mr.. Lee SAID that in July. 1896, the Stand
ard OIL Company was selling oil in New
York to delivery wagons for 3l2 cents gal
Ion. The Pure Oil Company, represented by
the witness began putting oil in that city,
and the Standard cut their price down to
5i2 cents a gallon-less than the cost of the
oil to them. Since that time the battle be-
tween the two companies going on in
New York. He said that I cents q gallon
would give a handsome profit to both COM
panies. The competition brought into New
York by the Pure OIL Company had resulted
in a saving in three years of S},OO0,GGO to
the consumers of oil. In Philadelphia very
similar conditions exist.
Mr.. Lee said that there are places in the
United States where the Pure Oil Company
sells under better conditions, but he believed
they have advantage in freight rates.
Aid Received From Railroads..
Il wish to make a statement which is a
matter of belief, for 1 am not absolutely GER
tain of 1t. l believe the Standard Oil Com
pany is getting as great advantages from
the railroads ever but in an entirely dir
ferent way and | do not see how that can
b: reached from this fact. The purchasing
of oils by railroads has been taken sin the
..l~ Of r1ap oil dc h. h.,