The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-08-01
A FIGHT IN OIL TRADE.
A Savannah Firm Enters the South
ern Field.

Savannah and several other neighboring
cities will shortly have competition in the
oil business. The Dixie Oil Company has
been organized, and will shortly begin
business. The oil company is a branch of
the S. T. Shotter Company of this city,
and will be conducted as such
Since the Tidewater Oil Company went
out of business the Standard Oil Company
has had the field all to itself in this terri
tory, and the natural superstition, when. it
was announced that the Dixie Oil Com
pany would enter the field, that it was
for the purpose of bucking the Standard.
Mr.. S. P shotter. who was seen yester-
day IN regard to the matter, said chat
such was not the case.
80 far as any direct opposition to the
Standard Oil Company or any other indi-
vidual oil interest is concerned" said Mr..
Shotter, such a rumor is absolutely with
out foundation. There are hundreds of
large dealers of petroleum in this country
who have no connection with the Stand
ard Oil Company. 1t is true that in this
particular market and in some other sec
tons of the south, they have a very large
proportion of the trade. Our ideas are
exceedingly modest and moderate and very
little of this business will satisfy US. We
certainly do not intend to place ourselves
in a position of what is called "bucking
the Standard" In fact, so far as l know
their speciality is refined oils whereas we
propose to turn our attention more to lu-
bricating oils of the very highest type. We
believe that there is a good demand for
first-class goods without regard to cheap
ness of price. and it is goods of that char
acter that We propose to place on the mar
ket. We have been led into this business
through the fact that we have in the South
Atlantic and Gulf states seven offices al
ready established in our regular nava.
stores business and we can do moderate
oil business at these points without any
addition to our fixed charges, and at the
same time employ certain amount of idle
capital which the existing dullness of trade
does not employ in any more favorable di-
rection."
The Shotter company has offices in Will
mington, Charleston, Savannah, Pensa-
cola, Mobile and New Orleans and an Of
flee will probably be established at jack
sonVille. The oil company Will similarly
have establishments at each of these
places, but the business of the company
viii be conducted by the forces OF the
Shelter company. While giving attention
chiefly to lubrlcating oils, the illumindt-
ing business will not be neglected, and
the local trade in each of the cities named
will he looked after in the same manner
as it is at present supplied by the Stand
ard. OIL will be kept in tanks and sup
piled to the trade by tank wagons.
I'VE already have the largest rosin oil
..-1r.a E.rew
said MIR. Shotter "Our tanks there will
be used for the storage of petroleum and
other oils ara other tanks will be added
as needed. Warehouses have also been
secured for storage purposes. Petroleum
will be brought down by schooner. While
the Standard company controls about 50
per CEN OF the wells in the Pennsylvania
oil region, the other 20 per cent. includes
a very large oil production, which mus,
be disposed Of through other channels.
consequently we anticipate NO difficulty in
s securing all the oil needed for our bust
ness. The ;raasportations companies In
this section use very large
amount of lubricating oil, ana
If we can supply only a portion of this
trade we shall bes more than satisfied.
As we do a large business with most OF
the railroads leading to the west from
this section, IL is only naturally that We
should expect some consideration from
them when il comes TO the purchase OF
oils"
Savannah will be the headquarters of
the Dixie oil Company. with branches ar
the other cities named. The capital OF
the company is 100000
Mr. Shotter has another enterprise
which will shortly be in operation, which,
however. does not directly interest Savan-
nah. This is an axle grease factory, which
is 10 be established at New Orleans Rosin
40 oh
ents Of axle grease and the Shotter COM
pany being engaged in the manufacture
and supply Of both. an axle grease factory
is a natural addition 70 the enterprises OF
the company. The factory Is TO be locat-
ed az New Orleans because Of the much
larger territory for this article that can
be commanded from that point.