The record-union., 1899-06-10
Devoted to Testimony Relating to Opera
lions Of Standard Oil Company
Late Reports From the Flooded Dis
tricts in Texas Confirm Former
Reports Of the Loss Of Life and
Property-Many People Resid-
ing in the Devastated Country
Unable to Make Their Escape
From the Rushing Waters.

WASHINGTON, June 9.-IheOdOre
F. Davis of Ohio was the first wit
ness before the Industrial Commission
to-day He is both a producer and
dealer of petroleum, located at Mar
ietta, and his testimony dealt with the
operations of the Standard Oil Trust
and the Argand Oil Company. He
complained OF the determinations OF
the railroad companies, saying that the
managers of some of the roads were i'll
terested in rival companies, which were
so favored that his company was COM
PEELED to suspend business. This dis
elimination was also practiced by the
pipe lines against producers not in the
combine Outsiders were also unable
to secure rates from the railroad, wit
ness averred, forcing the conclusion
the railroad companies We're concerned
for the success of the pipe lines.
Mr. Davis stated that the Standard
Oil Company had been able to come into
area through cooperating companies.
He declared that as a refiner he had
purchased considerable oil from the
Standard Company, and that it was
the custom of the Standard Company
to charge up it's losses of oil by fire,
leakage, etc., in any given district to
the purchasers in that district.
He also said that the Standard Com
pany had such relations with the rail-
roads and so completely controlled the
markets as to render it almost imprac-
ticable for any refiner to enter upon
the manufacture of lubricants. He said
that on one occasion clerk of his firm
had been offered money by the Stand
ard Company for information as to the
business of the concern. This scheme
the clerk refused, but the firm became
satisfied that the Standard Company
had information of every barrel ship
ped by his house. Every shipment was
followed up and the consignees ap-
preached with offers of oil at lower
rates. The competitors also resorted to
duplicating his brands and sending out
under them inferior articles of oil. The
competition became SC fierce that his
house was compelled to quit business.
Mr.. Philips asked Mr.. Davis if it was
not fact that the profits of the Stand
ard Company were greater on each bar
rel of oil sold than the cost of the
article, but the witness declined to an
swer, pleading ignorance on the point.
1t was a fact, he said, that the Stand
ard Oil Company had purchased sew
eral refining plants, and, he thought,
dismantled them, but he was not pre-
pared to say that such refneries Were
we'll enough located to render it profita-
BILE to maintain them. Nor was he
prepared to say that a New York Oil
Company was engaged in practices
which any other would resort to, to get
business under the same circumstances.
Mr. Davis was followed by Z. o..
Westgate, an oil refiner of TituSville.
Pa. Among other companies in which
he is interested is the Pure Oil Com
pany. He said that in both New York
and Philadelphia the Standard Com
pany had reduced the price of oil i'm
mediately upon his company entering
the field, and owing to this reduction
oils were now being sold in both mar
kets at prices which render the bust
ness improbable.
Mr.. Westgate gave some particulars
of his. competition with the Standard
Company, saying that the Standard
managers kept a strict account OF all
the oil sent out by rivals. His company
ers where necessary. His general
policy was to try to get only a small
percentage of the business in each
place, and he had found that 50 long
as he pursued this plan, prices could
be held up, but that if he endeavored to
increase the quantity prices were i'm
mediately reduced with the intention
of driving him out of the field.
Mr.. Westgate has no doubt that the
Standard Company knew each morn
ing just what his shipments had been
the day before He could not say that
the railroad supplies Tiffin, but he
knew that it did not go from his own
office. He told of instances in which
the Standard Company had made eff
forts to entice his men from him, and
also threats in cases where the COM
petition was sharper than the Standard
enjoyed.