Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1899-05-20
MONNETTG OHDIESIFES
Makes Sensational Statement
Regarding the Operations of
Standard Oh Trust.
TRUSTS STEAL POWER I
Says the Remedy is Simple the Courts
Having Never Faltered When Cases
Were Properly Presented.

That They Receive Favors From tho
Railroads In transportation Rates-No
Industrial Combination. II Courts should
Enforce Laws
Washington, May 19.-Attorncy-Gen.
eral Monnett. of Ohio, who it Is al.
legged, was offered a bride of $I00,000
TO quit prosecuting the Standard Oil
Trust. revealed the method of the
Trust before the Industrial Commits
sion.
The statements were the most en-
phatic aud sensational regarding trusts
that have been heard before the COM
mission. Measuring his words very
carefully, he said:
'sThe secret or the maintenance OF
all trusts Is that they receive favors
from the railroads in transportation
rates. IL the courts and all the execu-
tive officers We're to enforce the laws.
there could be no industrial combina-
TONS
'.The trusts steal both federal and
State power with which to whip and
crush individuals"
"If an assayer at one Of the FEEDER.
al minis were to clip the coins OF the
government and profit by the differ
Nlitta lt Nobi4 no HiOtt NtOftttE tAt
laws than do the pipe lines and the
railroad companies"
'The remedy Is simple continued
Mr.. Monnett. ''1he courts have never
faltered when the eases were properly
brought bfore them. The charters
should either he taken away or corpor.
| atoms should lie made TO obey the
laws. The ground OF forfeiture can
be easily arranged
Several representatives of the STAN
dard Oil Company were also present
when Judge Philips, acting chairman
Of the Commission, introduced MIR.
Monnctt. Professor jerks, Of Cornell
who acts as counsel and trust expert,
opened the investigation.
The organization of the trusts IN
Ohio Mr.. Monnett described as follows:
The producing company wns the
Ohio oil Company. which furnished
the crude product to the Buckeye Pipe
Line Company. The Indiana field
was operated by this company until
the recent suits. when the field was
turned oyer TO the Indiana Pipe Line.
Oil is refined by the Standard Oil
Company ia refineries mt Whitney, Ind.
Cleveland, Ohio: Lima, and Solar,
Ohio, and elsewhere.
I1uNlflZ Itiittu ifit liOuutA, VIC lItHk
passes II on Il another branch OF the
Union Tank Line Company. and their
branches distribute it to the tankagc
stations.
Witness called attention to the fact
, that the company had contracts with
the railroads which rave the trust the
preference over It's competitors, IN
some instances the others being com
PEELED TO pay 400 per cent more than
the trust for the transportation Of
their product.
The secret Of the Standard Oil Com
pany's power, Mr.. Monnett thought,
was due almost entirely to the discrim-
mating favors granted by the railroads.
Mr.. Monnctt next gave n history OF
how the OIL Trust developed In Ohio,
aud the final extension to so many
States. He specially mentioned the
Ohio oil Company. In 1873 to 1882,
under State authority. this company
increased its capital stock to 81, 900
the shares numbering $4,000. Grad
ually all these shares but seven fell in
to the hands OF nine trustees.
Step by step the big trust was
formed. until the combination ulti-
mately absorbed thirty-one compafi-
les, bnt not over twenty of these main
tanned their organization. The last off
cial inventory taken showed that tho
total capital stock of the twenty com
panies IN operation by the trust was
S1O2. 1877 900, hut the valuation of the
property was S121. 631 900.
Mr.. Monnett read in detail the CAPT
tai and valuation OF the several com
panies. Some of them were remarka-
bile. For instance, he said. the stock
Of the Ohio OIL Company was only
so, 900. 900, but the assets were neary
S0.0 900.
The Standard Oil Company of New
Jersey had S10.000.00O capital and as
sets OF $4,000, 900: the Standard Oil
| Company of New York, with only
s $1,000, 900 capital. had property of
| about $4,000. 900.
The witness said that the trust was
absolutely controlled by n man.
! John ID. Rockefeller.
The last dividend amounted TO %2i--
GOO. 900. The assets were S12l. 631,312
and the capitalization $i02 233. 700, the
assets being an excess Of S~l9,3S7.6l2
over the capitalization. The courts
decree dissolving the trust was useless.