The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1907-05-28


tire industry, Standard capitalists in
1882 concentrated their various hold
ings under the Standard Oil Trust. The
features of this arrangement are we'll
known. The acquisitions of the trust
included. the entire stock holdings
OF IA companies and majority in
terest In 20 additional concerns. A
further Illustration of the rapid ex-
pansion OF the Standards power In
the twelve years succeeding 1870 is
found In the fact that whereas the
Standard Oil Company OF Ohio had
been capitalized at only $1,000,000- In
1870 the nominal capitalization OF the
Standard Oil Trust in 1882 was S70,-
100000 and the appraised valuation OF
Its properties in excess of $4,000, 900.
How far the power represented by
this aggregation was concentrated In
a few hands may be judged from
the fact that the nine individuals act
1 ing as trustees of the trust together
owned in 1882 more than s46,000,00
out of the s70.000,00O OF trust certi-
flcates issued
Under the trust form of organiza-
ton the power OF the Standard in
terests was further exit dnedxe, ,anda
! terests was further extended. and in
the next decade the appraised valua'
tion OF properties had more than
doubled being s121, 100000 in 1899. In
the meantime an attack on the legal
fly of the trust had been instituted
in the form of suit in the Ohio
courts against the Standard Oil Com
pany of Ohio; and. as a result of an
adverse decision. announcement was
made in 1892 that the trust would be
dissolved, The termination Of the
trust form of organization, however,
made no change in the monopolistio
power OF the small group of Standard
capitalists. In the so-called dlssolu-
tion of the trust. the stocks of each
Of the various subsidiary corporations
were not returned to their original
owners but were allotted to the hold
ers of trust certificates on a pro rata
basis, with the result that the tris-
tees who had previously held major
ity OF trust certificates now secured
majority in every one of the con-
stituent companies. The same indi-
viduals therefore retained their DOM
mating position In the industry.
THE PRESENT ORGANIZATION.
Te exchange of trust certificates for
stocks was moreover pursued In every
dllatory fahion. In 1907 contempt
proceedings were instituted by the |
State OF Ohio against the Standard
Oil Company Of Ohio on the ground
that It had not Withdrawn from the
trust. Pending a decision, Standard
interests adopted new Geyice for
maintaining control Of their various
properties. This was the reorganIza-t
tion of the Standard Oil Company
OF New Jersey by increasing its capt
tai and making II holding corpora
tlon for the constituent Standard COM
panies. The present New Jersey Or
ganlzation accrlred the stocks which
had previously been held by the trus-
tees and which, during the nominal
dissolution OF the trust, had been part
ly held by individuals. II gave Its
own stock In exchange for-such stocks
of constituent companies. The change
therefore, like the so-called dissolu-
tion OF the trust in 1892, again left
the monopoly power OF the Standard
group of capitalists undisturbed. For
all practical purposes, the present or
ganization Is a direct successor OF
the former trust. The properties, ex-
cept for subsequent acquisitions, are
substantially the same. and the con-
troll of these properties Is exercised
by the same individuals. The change
was one OF form only.
DOMINANT POSITION
The list OF companies given, show
ing the Extensive Interests OF the
Standard in practically every depart
ment OF the oil Industry. Affords some
idea OF the vast influence OF the COM
pany but this is more clearly shown
by statistics Of the proportion OF the
business II controls.
RELATIVE IMPORTANCE OF DIFF;
ERENT OIL FIELDS.
In considering the Standards prop
ortlon of the production Of crude oil
and OF the pipeline. refining. and mar.
keting branches of the oil business,
It can not be too strongly emphasized
that a comparison of the Standards
operations with the total production
of crude oil in the United States
means nothing. In the past few years
conditions In the oil industry have
an immense change, In
the Ave years ending with 100 the pro-
duction OF crude in the Appalachian
and Lima,Indiana oil fields constitvt-
ed about '95 per cent OF the output for
the entire country. After 1900 the-ae-
OF new fields, particularly
In Kansas and Indian Territory. Texas,
and California went on so rapidly
that In 1904 the output of the Appal-
achian and Lima-Indiana regions had
dropped to less than 80 per cent OF.
the total for the country. and In 1905
to less than 40 per cent. Still more
recently in. 1906 and 1907. large new
production has developed In 'Illinois,
The total production OF crude In the
United States more than doubled be-
tween 1900 and 1905.
NOT BASED ON MONOP-
OI,Y