The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-09-29

corporations for the purpose of fixing
the price of crude and refined oil, linn
iting its production, controlling its
transportation and entirely monopoliz-
| ing its sale.
During the second period the de-
| PENDANTS are charged with entering
into an agreement with various firms
/ and corporations and individuals for
the purpose of turning over their bust
ness to nine trustees, composed prin-
cipally of the defendants in this ac-
| ton, with a trust agreement for the
restraint of trade.
During the third period it is charged
that the defendants through the Stand
ard Oil company of New Jersey as a
holding company Nof all the corpora
tons acquired, controlled these cor
poratiOns in violation of law.
It is charged that in or about 1870,
John D. Rockefeller, Samuel Andrews,
| William Rockefeller, Henry NJ. Flag
Ter and Stephen V. Hardness were en-
gagged in refining petroleum and selling
it under the firm names of William
| Rockefeller & Co, Rockefeller & An
drews. and Rockefeller & Co. About
this time all these businesses were con-
| solidated and incorporated under the
/ laws of Ohio into the Standard Oil
company. The capital stock was then
| 81 000,0 600, but in two years later was
| increased to $2.500.000. and in 1873 to
| So, 500 600. There were many competing
refneries in Ohio at that time-tWenty
five or thirty-which were engaged in
shipping crude petroleum from Penn
/ sylvania to Cleveland. where IL was re-
| fined and shipped to various parts of
the United States. BY 1872 all these
competing companies, except three or
four, had Joined the Standard Oil COM
pany. and it is charged that these in
dependent refiners were forced to sell
out their refineries to the Standard Oil
company. because that organization
had obtained rebates and preferential
rates for the transportation of crude
and refined petroleum which the indie
pendent Tefiners could not obtain. By
such methods, 1t is claimed, that the
Standard OIL company controlled s.
per cent of the oil business in the
United States. Then it is charged that
associations were formed for the pur-
pose of controlling the entire output
of crude oil. The Producers associa-
ton was composed of the producers OF
crude oil, and the Petroleum Refiners
| association, with John D. Rockefeller
as president, was composed of the re-
fineTs. A private agreement between
these associations, signed by John d
Rockefeller and his associates. shows
oil exclusively to the refiners. that the
producers will buy exclusively from
the producers, and that the prices OF
crude and refined oil shall be fixed al
certain figures.
Then comes the charge that conspira-
cies were entered into with the Penn
sylvania, the New York Central and
Hudson River, the Lake Shore &
Michigan Southern. the Erie. the At
lantic & Great Western, the Jersey
Central, the Reading, the Baltimore &
Ohio, and other railways, for the pur-
pose of obtaining rebates and prefer
I entail rates for transporting petro-
leum to the disadvantage of all COM
petitors. 1t is charged that an exam
pie of the methods pursued in these
cOnSpiraCieS was the formation of the
South Improvement company of Penn
sylvania, which was organized by John
Il D. Rockefeller, William Rockefeller
o. H. Payne and H. NJ. F'lagler This
company. it is said, entered into a con-
tract with the Pennsylvania Railroad
company. the New York Central and
the Erie Railway company for the pur-
pose of receiving preferred rates. The
contract with the Pennsylvania COM
pany which is TO be offered in evil
dence, says, among other things:
The party hereto of the second part
covenants and agrees:
81 That the party hereto of the sec
ond part will pay and allow to the
party hereto OF the first part, for its
own use, in all petroleum and its
products transported over the rail-
roads of the party hereto of the sec
ond part and its connections. for the
party hereto of the first part, rebates,
and on all transported for others draw
backs, at the rates hereinafter pro-
vided, except in the case specified In
article third"
Article third referred to reads:
And it is hereby further covenant
ed and agreed by and between the par
ties hereto that the rebates hereinbe-
fore provided for the party hereto of
the first part may be made to any
other party who shall furnish an equal
amount of transportation and who
shall possess and use works. means
and facilities for carrying on and pro-
noting the petroleum trade equal to
those possessed and used by the party
hereto of the first part
Inasmuch as the government asserts
that the Standard Oil company con-
Quoted 50 per cent of the oil business
in the United States, this article would
not particularly aid any Independent
company. The following figures are
presented from the agreement, which
the government will furnish to the
court, as an example or the REBATES Sc
cured by the Standard Oil company
from the Pennsylvania railroad:
On the transportation of crude Pc
troleum: From the gross rate 10 any
common point to
Rebate
per barrel
Cleveland ...... ..................s0.4
Pittsburg 1890 ,..... 40
New York .................-..-. i-Uo