Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1899-05-12

| " oHAAa6t cAis 4sAdy IL hN AAouS
trial commission has decided to post
pone the calling of several witnesses
in connection with its inquiry into the
| trusts who were to have been heard
this week and next because of the fact
that the commission has not yet COM
pleted its outline of a plan of inquiry
on this subject. These witnesses are
Henry O. Havemeyer, who was TO have
been heard tomorrow in support OF
the sugar trust, and Messrs. j. B. Ar
buckle. ]. H. Post and Charles Dosner,
in opposition to this trust, who were
to have come ON later days. The I'M
Outstanding now is that all these will
appear some time in June.
Inquiry in regard to the operation of
the Standard Oil Company has been
deferred until September to permit
President Rockefeller, of that company,
to be present. Mr.. Rockefeller contem-
plates an early visit TO Alaska and the
postponement was arranged at his re-
quest.
The commission to-day heard the
first witness to be called in connection
with its inquiry into the operations of
trusts. The witness was Hon. James
w Lee, of Pittsburg, attorney for sew
eral pipe line and oil companies, and
formerly State Senator of Pennsyl-
vania Mr.. Lees testimony was direct
ed especially against the Standard Oil
Company.
Speaking of the effect of trusts upon
the consumer, Mr.. Lee said the tenden-
cy was to increase prices until they
become extortionate. Trusts were or
ganized to secure monopoly, and
when this was secured by closing up
rival establishments they were in posi-
ton to fix prices which were according
to his observation generally increased
in orde. to permit dividends Oh watered
stock. This had been mainly true of
the Standard Oil Company. As an IL
lustration, he said that when the Pure
Oil Company in which the witness is
interested, went into tie field in New
York in SO they found the Standard
selling oil at 912 cents gallon. The
price was almost Immediately reduced
to 514 cents and had remained there
since, the object being TO drive out
the rival. The first price was inordi-
nately high, but the latter was ruin
ously low. and while the independent.
company had met the reduction it had
done so at loss. He thought the COM
petition had resulted in a saving OF fully
100000 to the people of Greater New
York. The same condition of affairs
existed at other competitive points.
Mr. Lee said the Standard Oil Com
pany had made an effort to prevent the
extension of the business of the indie
pendent companies to foreign markets
by buying up the tankage at given
points and by selling at lower prices
than prevailed even in the United
States. Still the independent COM
panies were able to compete abroad
largely because in Great Britain and
Germany and in some other countries
competition was preserved to a greater
extent than in the United States. The
profits made abroad were what enabled
the independent companies to continue
in existence as the business in this
country alone was Improbable.
Mr.. Lees testimony at the afternoon
session of the commission was devoted
to the effect of trusts upon the pro-
Queer and upon labor, dealing again
[ exclusively with the oil business He
said the aim of the trust was TO get a
complete monopoly of business, fixing
the price as it may please and leaving
little or no profit 10 the producer. In
illustration he said the Standard Oil
Company had maintained the price
paid for crude oil at S. cents per bar
rel for year and that for she ten years
prior TO 1895 the price paid had aver
aged only 80 cents per barrel, whereas
the average cost Of production was not
less than 81.
He further expressed the opinion
that the counties in Pennsylvania
which had produced all the oil turned
out in that State. amounting TO about
500, 100000 barrels, were worse of for
its output Still there were some wells
| which were largely remunerative. due
to their high degree Of productiveness.
AS matter Of fact, however. many of
the wells produced very little. OF the
$4,000 wells in operation. $4,000 pro-
| duced less than half a barrel a day
each. He thought If there had been
fifty refners instead of the Standard
company the market would have been
| just as extensive. the consumer would
have gotten his oil as cheaply and the
producer would have been much better
| on
~whers has the balance stneY' ask