Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1899-05-17

lNFORMA11ON CONjE X n / n II
THE METHODS OF THE ORIGIN
AL INDUSTRIAL HOW
IT CONTROLS THE OUTPUT, RE-
filming, TRANSPORTATION AND
SALE OF OIL-ITS DOMINATION
OF ALL LINES SOME SUGGEST
IONS AS TO HOW THE TRUSTS
MAY BE CONTROLLED.
Washington, May 16.-Attorney Gen
eral Frank S. Monnett, of Ohio, was be-
fore the Industrial Commission to-day
as a witness in the trust investigation.
His testimony related almost ex-
clusiyely to the Standard Oil Turst,
against which he had been proceeding
in his official capacity in Ohio. After
detailing the particulars of the suits
against the Standard company, brought
on behalf of the state of Ohio, Mr.. Mon
nett said the companies comprising 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
it had been developed so that it was
exchanging business with. the Western
Union company, acting as a common
carrier and making a cheaper rate to
the constituent members of the trust
than to other customers, functions
which were outside the corporate au-
thorlty OF the trust. MIR. Monnett
complained of discrimination in tele-
graph and railroad rates in favor of the
Standard company tank lines, saying
that in the latter it was equal to 400
per cent against the ordinary citizen.
Mr.. Monnett gave figures showing that
the capitalization of the twenty com
panies comprising the trust amounted
in the aggregate to $102, 233 900 and the
the valuation, $121 631, 600. He said
the trust could make its dividends
whatever it desired, as it controlled
completely the retail price of oil.
Mr.. Monnett told of the distribution
OF the stock of the trust, saying that
the trustees held 466,280 of the 100000
shares, and that John D. Rockefeller,
as chairman of che trustees, held a ma
jority of the stock thus distributed,
giving him the balance of power, max
ing it practically a one-man power.
Mr.. Monnett said the original value of
the plant of the trust was 49,, 250, 900,
but this figure should now be multi
piled by five
Mr.. Monnett insisted that the way to
control the trusts was to control the
transportation companies, which, he
thought, the courts do, and if the courts
could not do this the charters of the
roads should be taken from them.
"The Attorney General of New Jer-
sey could secure a regulation of this
discrimination within sixty days, Nj he
would take it in hand" said the wit
ness.
Speaking Of the earnings OF the oil
trust, MIR. Monnett estimated that the
gross receipts $4,000, 600 on the Ohio
product alone, and he said that all was
profit over four cents gallon on re-
fined oil. He placed the value of the
earnings of the company per year as
greater than the value of all the farm
products of the State.
AT the afternoon session of the com
mission Mr.. Monnett said in response
to a question from Commissioner Ken
nedy that he did not wish TO enteF on
discussion of the charge that the
Standard Oil Company had been guilty
Of attempts at bribery to prevent judi
cial investigation, 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 supply the data to
the committee. He could. however,
testify to the fact that the company
had secured the service Of railroad
agents all over the country to report
On the movements of their rivals and
he knew of one instance in which the
clerk Of a rival concern had been en-
ployed to supply the details OF his com
pany's operations to the Standard COM
pany. The company had its 'buzzards"
everywhere. They were appointed to
follow the wagons of rivals and secure
data upon which the company could OPP
crate. When rivals were driven out
OF a field by reducing rates the prices
immediately went IN
Mr. Monnett said he understood that
the Standard company controlled from
80 To So per cent. OF the crude oil pro-
duct, but as the company controlled the
means OF transportation it was not nee
essary that it would take the Oil out of
the rock. The company was thus indie
pendent OF we'll owners He did not
agree with the statement that the
Standard company was entitled to cred
it for the reduction Of the prices of oil.
believing this reduction TO be due en-
tirely TO other agencies.
Referring TO the necessity of con-
trolling the transportation agencies as
the available remedy for the evils OF
which he complained, Mr.. Monnett said
that no course could be too severe if
nothing less would produce the desired
result the States had the remedy OF
depriving the railroad companies OF
their charters and this should be re-
sorted to il they failed 10 treat all
equally fair. In conclusion Mr.. Monnett