The leader., 1902-03-12
THE COTTON OIL TRUST.
Sensational Disclosures Made
by State Senator Noel.

lOT II. Il NOtl maui SOlne rather sur
prising disclosures concerning the in
ner workings of a cotton seed oil trust
in this State, furnished him by Mr..
Sykes, formerly Secretary of the
Meridian Mill, of the Mississippi Cot
ton Oil Company.
Senator Noel stated that the pending
bill was purely remedial, imposing no
penalties, and solely affording a means
of enforcing the laws already in ex-
istence, by providing a method of OBJ
tanning evidence, perfectly valid, if
adopted, and by giving jurisdiction to
the courts of each county in which an
offense against the antitrust law was
committed, or in which one of the joint
offenders was domiciled. He stated if
the law was passed he would furnish
the Attorney General information on
which to establish the combination of
the cotton oil mills, and if the law
was passed, and the prosecution sug
gested by him failed he would indemni-
fly the State against the payment of
any court costs. He stated that he felt
assured, on information impaired to
him and deemed by him entirely re
liable that if this law was adopted he
could establish in the courts the fol
lowing facts in relation to a trust of
the cotton oil mills
On the 29th day OF August, 1901, in
the city of Memphis, Tenn, there was
formed a cotton seed trust. At the
time of this meeting or convention
there were 03 cotton seed oil mills in
this State, exclusive of two or three
mills so situated as not to be con
sidered of enough Importance to con
troll any large amount of seed. OF this
% mills large number we're repre-
scented at this meeting which formed
the rules, etc, and Immediately after
wards all the balance of the % mills,
with the exception of the Belzoni oil
mill, came into the organization. At
this meeting they elected the manager
of Vicksburg mill president, and
that Mr.. A. g. Perkins, of Memphis,
Tenn. is. or was, treasurer The
treasurer is on a salary of $500 per
year. The head office is in Memphis,
Tenn, and is, or was, located on Front
street.
A membership fee of $3.50 was re-
quired, thus giving the treasurer 5l3,-
900 to start on. Each mill pays into
the treasury each week 10 cents per ton
on its weeks receipts. Each mill is
prorated its share of the crop of seed
as estimated by the organization, the
size, location, and former receipts of
the mill governing the amount pro
rated. On every ton of seed received
in excess of this prorate the mill
must pay into the treasury in addition
to the 10 cents per ton, 81 per ton for
all excess seed. In this way quite a
sum of money is acquired above the
amount required for expenses, and a
sum of twenty odd thousand dollars is
set aside to fight any mill that breaks
the agreement or that is not in the
combine, but becomes obnoxious to it
by paying the proper price for the
seed, which is against the combines
business method.
At this meeting a constitution was
adopted which is rigidly adhered to, a
cipher code gotten up, report blanks
for reporting seed received, etc. The
mills are numbered from l to %, inclu-
sive, and each mill goes by this number
in its correspondence such as demands
secrecy. A weekly report is required
of each mill. This report only shows
the mills number, and does not dis
close it's name or locality. The report
is lettered "a. B. G. D. etc, the let
ters indicating the route over which
the seed are received. Thus, "a"
means wagons" "B." some railroad,
the Illinois Central, for instance, every
railroad and waterway being assigned
a letter. The seed are reported in
pounds, but only the figures show, with
out stating whether pounds, tons,
mules, hogs, or anything else With
this report the remittance of 10 cents
per ton as shown by the report is re
mitted to the treasurer. When the
treasurer receives all the y reports, he
in turn makes a report of all the re
ports without consolidating except as
to totals. This report, like the weekly
one, discloses nothing to one not hav-
ing key to same, except mass of fig
ures. This report shows the weekly re-
ceipts of each MILL its previous re
ceipts, and receipts to date. The mills
pro rate the excess or deficit on the
pro-rate and the money each mill has
RENTED. In this way each mills seed
business is open to the other as one of
these reports is mailed to each mill.
The treasurer sends to each mill the
price it must pay for seed, and states
the day it is effective. This is why all
the mills maintain the same price, eff
a penalty of heavy fine for violating
the rules by raising the price all the
mills are kept in line on prices. This
accounts for the absence of travelling
seed agents who used to scour the
country for seed. 1t also accounts for
the remarkable fact that there have
been no fights for seed between local
and country seed agents this season.
The combine maintains two travelling
auditors who visit each mill and check
its books to see that they send in the
proper reports aud pay the authorized
prices. The mills of the State have,