The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1900-01-11
Mr.. ROCKEFELLER ON TRUSTS
HIS ANSVERS 10 INVESTIGATING
COMMIITEE,S QUESTIONS.

(
COMMI1TEE'S QUESTIONS.
Declares Industrial Combinations
| Necessity-Gives Seven Chief Advant
| ages-Whcre the Danger of Them lie
| Power May be Abnsed-Some May b.
| Formed f0r Speculation.
| Washington, Jan. 10.-The industrial
kcommission to-day received from John
p. Rockefeller president of the Stan
dard Oil company replies to questions
sent him by the commission. Mr..
Rockefeller says that the STANDARD Oil
company was changed first from a
partnership into a corporation with
$1,000O0O capital and later into still
more heavily capitalized corporation be-
cause the business grew and that the
object was always the same, 'to extend
our business by furnishing the best and
cheapest products"
Regarding the receipt of rebates, he
says that prior to 1880 each shipper
made the best bargains he could; but
whether he was doing better than his
competitor was only matter of con-
lecture. Much depended upon whether
the shipper had the advantage of com
petition Of carriers. The Standard for
special services 10 the railroads obtain
ed contracts for special allowances ON
freights. These never exceeded, to the
best of my present recollection, 10 per
cent, but in almost every instance it
was discovered that our competitors
had been obtaining as good and in some
instances better rates of freight than
ourselves
No financial favors of any kind what
ever, he said, bad been received from
any railroad since 1887. He denied that
Standard Oil officers had acquired ad-
vantages over competitors through own
ership of railroad stocks, saying:
Stockholders and officers of the Stan
dard have invested in stock of the rail-
road companies. But in no instances
have they done so for the purpose of
influencing the policy of the railway
companies, nor to the best of my knowl-
edge and belief has any attempt ever
been made through such ownership to
influence any railway in favor Of the
Standard
The success of the Standard Oil COM
pany he ascribed to its consistent pol
icy through the employment of the
best superintendents and workmen, the
best methods and the sacrifice of old
machinery and plants for better ones,
to cheaper its product and to its spar
ing no expense to force it's products
into the markets of the world. On the
general subject of industrial combina-
tions he said: 1T Is too late to argue
about advantages Of industrial combin-
ations. They are a necessity. The
chief advantages are:
command of necessary capital
2-EXtension Of limits of business.
3-Increase of number Of persons in
terested in the business.
4-Economy in the business.
improvements and economies
which are derived from knowledge of
many Interested persons of wide expert
ence.
6-Power to give the public improved
products at less prices and still make a
profit for stockholders.
Permanent work and good wages
for laborers.
Mr.. Rockefeller then gives what he
styles a picture of the successive steps
in the development of the Standard Oil
and its business in illustration
Of the points he has made as to the ne
for industrial combinations The
follows:
Q-What are the chief disadvantages
or dangers to the public arising from
them?
A-The dangers are that the power
by combinations may be abus-
ed; that combinations may be formed
for speculation in stocks rather than
FOR conducting business, and that for
his purpose prices may be temporarily
,ased instead of being lowered. These
abuses are possible to a greater or less
sxtent in all combinat tions, large or
small, but this fact is no more of an ar
,ument against combinations than the
'act that steam may explode is an ar
sument against steam Steam is nec-
,ssary and can be made comparatively
sale. COmDlnatlOn is necessary ana Its
abuses can be minimized; otherwise our
legislators must acknowledge their in |
to deal with the most impor-
ant instrument of industry. Hitherto |
most legislative attempts have been an
ffort, not to control, but to destroy; |
renee their futiity.
Q.-What legislation, if any, would |
rou suggest regarding industrial COM
,inations?
A-First, federal legislation, under |
which corporations may be created and |
egulated, if that be possible; second, |
n lieu thereof, state legislation as near |
Y uniform as possible, to encourage |
of persons and capital for
he purpose of carrying on industries. (
tut permitting state supervision not of |
character to hamper industries, but |
to prevent frauds upon the
ubliC.
The statements made of his own
are sworn to as true and 9TH
rs Is believed to be true.