Standard Oil Company; Trusts, Industrial -- United States
This confession made on the stand, under the strain of
cross-examination in a civil suit in which he was a witness, startled
the country with its first hint of the real cause of the failure of
the great tax case, and led to an investigation by the Legislature of
Pennsylvania.[330]
The first payment was $7500. This was paid, not in a check, as is the
usual method between business men in legitimate transactions, but in
bank-notes--$500's or $1000's.[331] That this method of payment was
inconvenient and unusual was shown by the statement of the recipient,
that he went to the Chemical Bank and got a bank certificate for his
$7500 of bank-notes. "Of course I did not carry that amount of money
around with me.[332] Bank-notes and bank drafts, not the company's
checks, were used in the succeeding payments also.
"In sending him money to Titusville, where you had a bank account, why
did you not send him a check on your own bank or draft?"
"Well, there was nobody at Titusville who had any knowledge of the
matter. It was not necessary to acquaint them with it," said the
"trustee."[333]
This representative of the company was diligent in business, as he
understood business, and was always forehanded. He made the first
moves and kept the lead. He went all the way to Harrisburg to meet the
Attorney-General. He got control of the case by making the overture
to volunteer testimony. He called first on the lawyer sent to New
York with notice of "attack," called first on the State's expert in
Philadelphia and New York, made the first suggestion for "peace," and
got it "cheap."[334] But after he had bought "peace" the next interview
is at the company's office. The other man must walk now. When put on
the stand, the purchaser, of course, denied that this "purchase of
peace" had anything to do with the case against his company, or with
the suppression of the only expert in the employ of the State in that
suit.
"With reference to the tax case," he said, "the payment of this money
had no bearing whatever."
"Then why did you pay him the money?"
"Well, I have already said, two or three times, that I paid him the
money for the purpose of having him desist from further malicious
attacks upon our company."
The man of whom he had bought "peace" was not then engaged in any
proceedings against "our company," except the tax case. He had been
engaged in nothing for two years, since the proceedings of the
Producers' Association in 1880. There were no other movements in
prospect. The only war, actual or contemplated, was this tax war.
Pressed through several pages of cross-examination, and challenged to
name a single instance of war by this man upon them, at the time of
the purchase of "peace," or since 1880, which would account for their
willingness to pay him so large a sum, he was finally forced to say: "I
cannot do it."[335]
Public-domain text, read in full here on John Shaqi.
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