The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-06-10
Parties Who TRY to Compete Wit u
Standard Oil Company.
NO CHANCE FOR RIVALS
HOW RAILROAD COMPANIES FA-
voR THE BIG TRUST.
Ex-State Senator Davis of Ohio Tells
the Industrial Commission of His
Experience With the Great No
nopoly = Take Trade From Other
Concerns By Reducing Price.

Washington, June 9.-Ex-State Sem
the first witness before the industrial
commission today. He is a producer
and refner of petroleum, located at
Marietta, and mis- testimony dealt with
the operations of the Standard Oil trust
and the Argand Oil company. He COM
planned of the determinations of the
railroad companies. saying that the
managers of some of the roads were
interested in rival companies, which
were so favored that his company had
been compelled to suspend business.
This discrimination was also practiced
by the pipe lines against producers not
in the combine. Outsiders were also
unable to secure fair rates from rail-
roads, witness averred, forcing the con-
clusion that the railroad companies
were concerned for the success of the
pipe lines.
Mr.. Davis stated that the Standard
company had been able TO come into
the control of most of the producing
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 its losses by fire, leakage,
etc. in any given district, to the pur-
chasers in that district
Control the Railroads.
He also said that the Standard COM
pany had such close relations with the
railroads and so completely controlled
the markets as TO render it almost i'm
practicable for any refiner to enter upon
the manufacture of lubricants. He said
that on one occasion a clerk of his
firm had been offered money by the
Standard company for information. The
clerk refused, but the firm became sat
isfied that the Standard company had
information of every barrel shipped by
his house. Every shipment was fol-
lowed 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 so fierce that
his house was compelled to quit bust
ness.
MIR. Phillips asked Mr. Davis if it
was not a fact that the profits of the
Standard company were greater on
each barrel of oil sold than the cost of
the article, but the witness declined to
answer, pleading ignorance on the
point.
u,
ard Oil company had purchased several
refining plants and then dismantled
them, but he was not prepared to say
that such refinerieS were we'll enough
located to render it profitable to main
tain them. Nor was he prepared to
say that any oil company was engaged
in practices which any other would re-
sort to to get business under the same
circumstances.
Story of Another Victim.
Mr.. Davis was followed by T. w.
WeStgate, an oil refiner of 1itusville
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 companys entering
the field and that owing to this reduc-
ton. oils were now being sold in both
markets at prices which render the
business Improbable.
Mr.. Davis 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 COM
pany was in the habit of protecting
customers where necessary. His gen.
eral policy was to try to get only a
small percentage of the business in each
place, and he had found that so long
as he pursued this plan, prices could
be held up, but that if he endeavored
to increase the quantity, prices were
Immediately reduced with the intention
of driving him out of the field
Mr.. Westgate had 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 supplied the information,
but he did know that it did not go from
his own office. He told of instances in
which the Standard company had made
efforts to entice his men from him and
also of threats in cases where the COM
petition was sharper than the Standard
enjoyed.