The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-09-25
OCTOPUS AGAINST OCTOPUS.
FARCICAL INVESTIGATION BY THE
INDUSTRIAL COMMISSION

MIR. Phillips, tho vics-Chairman. the Largest
Stakeholder in tho Greatest of oil
Trusts. Conducts Investigation Against
Its Rival. tho Standard OIL Company.
WAsHINGToN. Sept. 24.-No doubt is enter
tanned OF the sincerity OF the mem bers Of the
Industrial Commission In making the state
ment several days ago that no effort has been
made. was being made or was likely TO be
made. to remove vice Chairman Phillips from
the chair or from the Commission. Although
not distinctly stated the inference is clear that
the Com meant that no such effort
was being made by members Of the Commits
sion; and. as yet. no movement appears to
have been inaugurated toward this end by
any one else. No appeal has been mado to the
President for the removal OF Mr.. Phillips and
while there Is considerable gossip as to his
connection with the Industrial Commission.
no one seems to take sufficient interest In the
mattor to attempt to secure his removal.
His most powerful antagonist. the Stand
ard Oil Company. will assuredlv take
no such step. as the presence Of Mr..
Phillips on the Industrial Commission
they contend. Is the most fortunate thing tor
the Standard that could happen. as 1t IL almost
q certainty that Congress will throw out the
entire testimony and conclusions. AS far as
the Standard Oil Company Is concerned.
because OF Mr.. Phillips's connection with the
Commission.
Mr.. Phillips Is one OF the largest stockholders
In the Pure Oil Company. which appears to be
modelled on the lines OF the Standard Oil Com
pany. In that 1t controls wells and pipe lines.
and produces. ships and markets its oil
through the m edium Of different branches.
Mr.. Phillns's company has n advantage over
the Standard Oil Company in that it Is as near
perpetual as il Is possible for human
70 ha law
BY an iron clad agreement q majority OF
the stock OF the company was deposited in the
hands OF number Of trustees to form what Is
known as a voting trust" and it was agreed
that they should vote this stock as they
pleased. and there Is no power except their
own action. which can deprive them Of the
power 30 conferred on them. The Standard
representatives charge that this constitutes q
greater trust than their own as the Standard
can be broken up by the stockholders at will.
while the voting trustees control the Pure Oil
Company absolutely
To go back little it appears that Mr.. Phil
lips early learned to respect the power OF the
Standard Oil Company. and in 1890 he di sposed
OF 1900 acres OF leased oil lands in Butler
county Pa. to the Standard Company for
SI5O.OOO. In connection with other indepen-
dent producers. Mr.. Phillips then formed the
Producers Oil Company. Limited, which pro-
duced the oil, the Unitod States Pipe Line,
which handle the oil. and the Pure Oil Com
pany which controlled the Producers Oil
Company. Limited. and the United States Pipe
Line Company. The Standard. according to
Mr.. Phillips. had attempted to buy into
the two subordinate ompanies. the stock of
which wa, largely held by The Pure on Com
| ever being swallowed by the big octapus.a vot-
ing trust c9ntr9IlinE majority OF the stock
| this arrangement the entire management OF
| the three companies passed into tho hands OF
Since that time the Standard and the Pure
Oh have been arrayed against each other the
of H ss MSch AH s sens Was
gsndered and It is mater OF record that tn, the
when. as member OF Congress and an
cd bill providing for the creation OF al Indus
trial Commission to Investigate trust and labor
M mo, that H bu
last year Phillips having retired from Congress
In the meantime, he was back again working
'os fnd h s peroG Mr. f fhps
ton with the Pure, on Company seems to have
the passage OF tho bill was recognized by the
members and by the commission itself in his his
election to the vice craftsmanship. Senator
9' . r n draef the
course OF the inquiries made by the commits
| sion.
| probed by the commission. the greater part OF
the time has been consumed IN hearing wit
and its operations, One OF tho most nntago-
nistic wtnesses TO the trust was President, Lee
The PURE G C0n1 the Tsnf I'D a
sS1 nsn N. Rs Fcanf mde Hs
Ehonsver, his memory D taiod when hem
the members q ,, the commiss9n were r.
Pure oil Company. and noticed the persistency
with which he attempted to bring to light facts
eqmpnny. it naturally created oonsideraS he
talk sm9nF them They feIt that thst the
the Pure OH Company. No move was made
FPS "H from The chair or to lay the "r matter
before the President to secure Phillps's with.
however. that when the report OF the commits.
sion is aid before Congress. It will he an easy
to cali attention to tho TACT that the nyestSa
ton Of the commission into the alfalrs OF the
Standard on Company was conducted by Q
mony, so obtained would be practically thrown
| out OF court"
Mr. Phillips says however. that he can see nc
Inconsistency in being at one and the sam,
time the prosecutor and the Judge II he did
Ahoush h sI said before the c 'nr tha
he could not become identified with the Stand
ard Oil Company or with any other concern
| practicinR the met hods OF the trust. even II h,
were assured OF fortune Of hundred million
dollars, he at the same time informed the com
| mission that he was entirely unpreJudiced il
the matter and could Judge the Standrd farl!
| and impartiAlly.
| Under the circumstances the Standard Oi
Company does not want Nj, Phillips removed
as he Is apparently its strongest card. Tn
! other commissioners can do nothing, and prob
| ably would prefer to refrain from doing any
thing in the natter for fear tho farceAl charao
ter OF the whole investigation would becom
| too apparent md Congress would provide 70
the dlscon tinuAnce Of the commission. Still
II they had known in time OF Mr.. Phtllips'
| connection with the Pure OIL Company, h.
would not have been permitted to preside an,
conduct the examination into the afIairs OF tn
| Standard.