Rock Island Argus., 1900-10-20
soHE FACTS ABoUr TRUSTS.

1
In interviews had with retail mer7
chants throughout the country on the
subject of the trusts and the war tax,
much inside information has been
gained as to methods of trust restraint
upon competitive commerce, and the
effect OF its war tax upon consumers.
With reference TO trusts, the Stand
ard oil trust is the largest, most pow
erful and most unscrupulous. Its
methods of restraining competition in
trade are various and far reaching.
1t has practical control of shipping
rates through secret agreements as to
rebates with the railroads, whereby a
rebate is given on every shipment,
which makes it impossible for the
small producer and reiiner to market
mis- goods. 1t resorts to every means
to drive small refners out of business.
1t has been known to seek inJunctions
against the use of certain transporta-
ton facilities, and failing in the at
tempt, it has solicited signatures to
petition declaring the refinery pub
lie nuisance. 1t has raised the price
of oil 2! cents per gallon ($1.50 per
barely within the last year. Its de-,
fense is like that put forward by the
sugar trust, that oil is SO cheap that
no one need be deprived of its use.
The argument of the people is that if,
with oil selling at the present price
and even lower, Mr.. Rockefeller has
been able to amass fortune of $780,
900, 900, the trust might have sold oil
at a much lower price and still have
earned vast sums of money. In other
words, no matter how low the price
is, it might be greatly less with profits
past all reasonable exceptions to the
trust.
Second in strength is the sugar
trust. In answer to the question of
whether sugar was selling today at a
higher price than it did 10 years ago,
large retail merchant said that it
was sold now for less, although the
now q cents per pound higher than
it was two years ago. The retailer
proceeded:
The sugar trust has many methods
of coercion. For instance, a merchant
whose business willaverage say $780,
900 per year cannot buy direct from
the trust, but must purchase from
the iobbers in his section. The trust
first commenced to selling to mer-
chants of the above class nothing less
than 10-barrel lots. This was raised
to % barrels, then to 80 and now to
100 barrels. Then came the notice
that purchases would have to be made
from the jobber. If q merchant asks
for a quotation from a jobber in
another city on 100 barrel lot. he is |
informed he must paw whatever price |
is asked by his own jobber, and must
pay the freight on the shipment. |
Thus he is forced to deal with one of |
certain jobbers and buy at a price
fixed by the trust. If it is found that |
two merchants are dividing a lot,
both are notified that their orders will |
not be filled in the future. Much |
hardship p is thus forced on retailers
who must have sugar. but many of
whom have not facilities for storing it
in such quantities.
The trust absolutely and arbitrar-
ly controls the price of its product.
md the jobber is compelled to sell for
hat price or be refused dealing with
he trust"
When asked, .'how about beet
'ugar?" the retailer said: II do not
handle it at all. but the beet sugar in
iustry is commonly supposed In be
by the sugar trust" 1t
las been pretty well shown by testi-
nonY before congressional commit
ees ana commissions that the sup
,osition is well based. Incidentally,
he merchant stated that Arbuckle 1
vas supposed either to be in the trust '
t present or soon would be. Ii