New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-01-11
ROCKEFELLER ON TRUSTS.
POLICY OF THE STANDARD OIL COM
PANY DESCRIBED.
LEGISLATION FOR REGULATION OF COM
BINATIoNs ACKNOWLEDGEMENTS
OF THE INDUSTRIAL COMMITS
SION ANSWERED


Washington, Jan. 10-The Industrial Commits
sion to-day received from John d. Rockefeller,
president of the Standard Oil Company replies
to questions sent to him by the Commission.
Rebates from railroads had been received, Mr..
Rockefeller said, prior to $780, but no special
advantages were given for which the company
did not make full compensation. No profits
came from such rebates, whatever advantage
was received in this way was deducted from the
price of OIL The company never received any
income from any railroad for oil shipped over
its line. The enterprise has been successful be-
cause of the cheapness of it's commodity. Com
| binatOns, he says, are absolutely necessary in
order to carry a large business. He recon-
mends Federal legislation under which corpora
lions may be created and regulated, and, If that
is not possible. uniform State legislation
couraging combinations and permitting State
supervision which will not hamper. but will be
sufficient to prevent frauds.
Mr. Rockefeller says that the Standard Oil
Company changed first from a partnership
into a corporation with $1,OOO0OO capital. and
later into still more heavily capitalized corpo-
ration. because the business grew and that the
object was always the same, Ito extend our
business by furnishing the best and cheapest
products"
Regarding the receipt of rebates, he says that
prior to 1880 leach shipper made the best bar
gain he could but whether he was doing better
than his competitor only matter of con-
lecture Much depended upon whether the ship
per had the advantage of competition of car
riers. The Standard for special services to the
railroads, obtained contracts for special allow
ances on freights These never exceeded, to the
best of my present recollection, 10 per cent but
in almost every instance it was discovered sub
sequently that our competitors had been obtain
ing good. and in some instances better, rates
Of freight than ourselves"
No financial favors of any kind whatever, he
said, had been received from any railroad since
1887. He denied that Standard Oil officers had
acquired advantages over competitors through
ownership of railroad stock, saying:
Stockholders and officers Of the Standard have in
vested in stock Of the railway companies. But in
no instance have they done so for the purpose Of
nor, to the best Of my knowledge and belief has
any attempt ever been made through such owner
Stan aRndapd i'ii'D''''e any ia-'"'' - ' u ''is
The success Of the Standard Oil Company he
ascribed to its consistent policy, through the
employment of the best superintendent and
workmen, the best methods, and the sacrifice Of
old machinery and plants for better ones. to
cheaper it's product, and to its sparing no
pense to force its products into the markets Of
the world.
On the general subject of industrial combina-
tons he said
1t is too late to argue about advantages Of in
dustrial combinations They are necessity Their
chief advantages are;
First-Command of necessary capital.
Second-EXtension of limits of business;
Third-Increase Of number Of persons interested
FouTth--fconomy in the business.
neutrality-suspicious. and economies which are
derived from knowledge Of many interested persons
siXth0Power to give the public improved products
at less prices and still make a profit for stock
Seventh-Permanent work and good wages for
laborers.
Mr.. Rockefeller then gives what he styles
picture Of the successive steps in the develop
ment Of the Standard Oil Company and it's bust
ness in illustration of the points he had made
as to the necessity for industrial combinations.
The last two questions and answers are fol-
lows:
Q-What are the chief disadvantages or dangers
A.-The dangers are that the power conferred by
be formed for speculation in stocks rather than for
conducting business and that for this purpose
lowered. These abuses are possible to greater or
less extent in all combinations large or small but
biEatons than the fact that steam may explode is
and can be made comparatively safe. Combination
is necessary, and its abuses can be mnimized;
incapacity to deal with the most important instru-
ment Of industry. Hitherto most legislative
deaPPoy aeece eef he an not TO 0u' "
Q.-What legislation, if any, would you suggest
regarding Industrial combnations2
A.-Frst-Federal legislation, under which
porations may be created and regulated If that be
second-In lieu thereof State legislation as nearly
persons and capital for the purpose of carrying on
industries but permitting State supervision; not of
prevent frauds upon the public.
The statements made Of his own knowledge
are sworn to as true and others as believed to
be true.