The times., 1899-05-12
MANIFOLD EVILS OF
THE TRUST SYSTEM
The Industrial Commission
Enters a New Field.
Methods of the Standard Oil Mo-
nopoly Severely Condemned.
Vigorous Testimony OGcred by
james 4. Lee. Pennsyl,nnia's
Chief Combine Fighter.

The proceedings of the Industrial, Com
mission yesterday were marked with unus-
ual interest. II was the initial day in the
trust investigation, and State Senator
James ". Lee. of Pennsylvania. who oc-
cupied the witness stand during the entire
day developed the fact that large field
ripe for investigation has been entered
By the Commission, and If other witnesses
follow the lead Of Senator Lee who con-
fined himself particularly to the monopoly
OF the Standard Oil Company. reliable
facts, most useful TO legislators, will be
made accessible.
Mr.. Lee handled the oil trust without
gloves. As counsel against the Standard
Oil Company in Ohio and Pennsylvania
the witness was thoroughly familiar with
the workings of the trust and disclosed
them, besides giving brief history of the
oil industry since 1853. He concluded with
several recommendations for legal restric-
tion of the aggregation of capital in any
industry.
The headquarters of the Commission
presented a more animated appearance
yesterday than at any previous time since
the beginning of the investigation. Mr.
Lee was accompanied by stenographer
who recorded the questions and answers
the Commissions stenographer Prof. j.
". jerks, of Cornell University, who is
employed by the Commission as an expert
on trusts, assisted in the examination of
Mr.. Lee. Exhibits showing the variation
in the price of petroleum and sugar for
number of years. and also the various
Federal and State laws for the regulation
of monopoiies were offered in evidence.
In opening Mr.. Lee said he should en-
ha
effects Of trusts on consumers, producers,
and labor, and remedies for their control.
The fight to establish Independent pipe
lines in Pennsylvania was recounted.
These lines had somewhat lessened the
monopoly OF the oil trust, as it was COM
paratively easy for them to control the
railways and secure advantageous rates.
Mr.. Lee disputed the theory advanced BY
the promoters of trusts that by cheapening
production they lessen the cost to the con-
sumer. Wherever a trust had been sue
| cessful in controlling an article it had in
variably increased the price to the con-
sumer even to extortion. Transportation
rates were talked of by the witness The
| oil trust, he said. now controls nearly 80
| per cent of the transportation, getting re-
bates from railway companies TO the ex-
| tent OF upward of ten million dollars a
year. In this way they were able to freeze
out all independent companies. 1t was
| practice of the trust to- pay enormous
| prices for independent plants. which in
many instances after they had been pur-
| chased were deliberately destroyed. \
man who would burn down his own house,
| Mr.. Lee said, was guilty of arson, and he
thought some penalty ought to be attached
to the destruction of valuable property,
| especially when it was done solely for the
purpose of strengthening a monopoly.
| A battle royal is now going in New
York and Philadelphia, the witness said,
| between the Standard Oil Company and
the Pure Oil Company. which latter COM
| pany he represented legally. Before this
competition began the Standard Oil Com
pany was selling oil in these places for
91-2 cents a gallon, but when the other
| company began to do business the trust
Immediately cut the price to IL cents a
| gallon. which was less than the new COM
| pany could produce the oil for. Seven
cents a gallon would have given a hand
some profit to both companies. Mr. Lee
thought that the Standard Oil Company
could not refine or handle oil at a less ex-
pense than other companies. Its sole ad-
vantage was the power to obtain special
transportation rates, and it was his belief
that this was done much now as ever.
| In speaking of the effect of trusts on la
| bor Mr. Lee said: When all the people
| skilled in certain kind of industry are
| employed by one institution 1t destroys
| competition. If a man should be dis
charged from such employment, he would
have no other place to go to find work.
His labor would be lost to the world. In
| that respect / think trusts are hurtful to
labor. 1t also makes the employed more
| subservient. 1t destroys their manhood
and belittles them
| If labor had not organized. the witness
| said. he did not know what would have be-
come of the laboring class. He had nc
complaint to make OF the manner in which
the Standard Oil Company treats It's en-
ployes. He said. however. that combina-
tions of industries necessarily curtailed
the number OF employees, although he
| thought the expense was about the same
since large salaries were paid to the Of
ficials of such combines.
In proposing a remedy Mr.. Lee said ht
vas simply giving his own ideas. He con-
sidered the question n very difficult one
The real evil was not in his mind, so much
in the aggregation OF capital as in the ten.
dency of such aggregations to drive al
others out of the same business. He sug
gested that all commercial corporations bt
, limited to a capitalization of $1,000. 900
This would make it impossible for com
bine to control any given industry, and a
the same time allow of all the benefit!
| that could arise from large concern
; Mr.. Lee suggested that a law maxim,
| the destruction of competition an offenc
: | punishable by fine or imprisonment O
both would be a wholesome measure I,
, | enact. Corporations generally have N,
morals or scrupies. he said. but their of
, | icers have a decided aversion to a prisol
| cell. This was about the only thing the,
,, were afraid Of.
| In limiting corporations to 81 ,001 900 Mr.
! Lee said he would not include transporta
tion. telegraph. traction, gas. electricity
or any corporation which could be con
| trolled absolutely by State or municipa
, | each State to pass a law against an,
, commercial corporation of a capitalization
: of over 81, 600, 900 doing business within it
confines.
; No more testimony will be taken b
. the Commission until tomorrow. when c
,, | G. Clarke, of Peoria, ILL.,, will appear L
| speak against the whisky trust. At tn
!. . request of John ID. Rockefeller. his en-
gagement to appear before the Commissio
!; | has been postponed until autumn. Thi
= was requested in order TO allow the hea
. OF the Standard Oil Company time TO visi
Alaska
The following Commissioners were pres
!, ent yesterday: Vice Chairman Phillip.
u = Senator Daniel, Representative Livingston
. Representative Often and former Lieu
. Gov. Andrew l.. Harris of Ohio. s. n. L
y North. John NJ. Farquhar, Charen
J, Harris, M. d. Ratchford. John L. Ken
), nedy, and former Senator Mantle
u u City Brevfties.
: As the result OF the reckless driving of a hor
and buggy by unknown man in the ConJu
I, Road last night two bicyciists. Clarence