Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-11-11
CANADA's OIL INDUSTRY.
President Gall Tells the Industrial
Commission His ImpressiOns

Mr.. A. D. Gall, president of the Gall
Schneider Oil Company of Montreal Can
ada, continued his testimony before the in
dustrial commission yesterday afternoon
after The Stars report was closed. He
complained that the Canadian government
imposes tariff of about 100 per cent on
American oils. and that Canadian roads to
Niagara Falls charge a high tariff on OIL
and said he believed the high freight rate
was made by the influence of the Standard
though he had no evidence to submit to
prove that suspicion.
The witness said that there had been
discriminating rate the Canadian Pa
cific and the Grand Trunk lines in Canada
on oil produced in Canada and the United
States. The charge on Canadian oil had
been II cents A hundred and on American
oil "a cents a hundred gallons. This was
believed by the witness to be the result
of desire on the part of the Standard to
force The people of Canada to use Canadian
oil, which was not as good as the Ameri-
can product He said this discrimination
was not used the Michigan Central rail-
road. and said that that road claimed that
it lost the business of the Standard Oil
Company because of its action. He
claimed that secret rebates had been given
the Standard Oil Company Canadian
roads, but when questioned said he had not
evidence to bear out that charge. He said
they had been promised an investigation
by a committee of parliament and hoped
to establish the charges he made. He fur
INGr stated Ilat ne COulu not Duy oil in
Canada from the Standard unless he agreed
to buy solely from IT. He had not been
able to buy oil from it unless he wanted
to purchase some of it at retail
The Oil Industry in Canada.
The witness was asked whether the pol
icy of the Canadian government was not
to build up the crude oil industry of Can
ada at the expense Of the American indus
try and whether the discrimination on the
railroads was not the result of that pol
icy. He said the government in part had
followed that policy, but he didn't believe
the present administration was doing So
When asked whether any one could open
refinery and refine oil in Canada, buying
crude material from the Independent pro-
ducers, he said he could do so, but that
he probably did not because he feared
the competition of the Standard OIL Com
pany. The price of crude oil had been put
up by the Standard company he said from
81 40 to SLIGO barrel, and this advance
was to the benefit of the Independent pro-
ducers. He said he thought this was done
in order to stimulate the local production,
and it paid the Standard better to pay a
higher price for it's crude oil under those
circumstances than to pay lower price.
He said the opening of refinery in Can
ada would be a risky business, as change
of administration might bring about a
change in the tariff of Canada which might
ieopardize the business of such an estab-
lishment
The High Tariff on Oil.
In reply to questions he said that the
Canadian tariff on oil was larger than the
tarlf on anything else imported, this tariff
amounting to 100 per cent in round num-
bers This made the price of American oil
very high. He didn't know why Canada
put such a high tariff on the Oil. He didn't
think it needed the tariff. With this
high Canadian tariff and the freight rates
they could not sell American oil in Canada
at less than II cents gallon. They could
not really sell it at III cents.
Mr.. Synyth: do you blame the Standard
Oil Company for this high price?'
blame for Freight Rates.
Mr. Gall: I'VE do as far as the freight is
concerned N: II
He said the railroads sclaim that the
Standard pays the same rates oil ship
ped to Canada from Ohio, but the witness
did not think it did, The rates he COM
planned of were not on American railroads
but on roads from Niagara to Canadian
points He didn't know whether the en-
ployes of the Standard in Canada We're
Americans or British subjects. He didn't
know of anything the Standard would not
do to knock out competitor. 1t would
follow a man around, and after he had
sold oil it would offer to sell to his Gus
toner cheaper next time.
Mr. Clark: DO you think the Standard
runs your railroads and your government
in Canada?'
Mr. Gall: IT think they run the railroads.
but don't say they run the government of
Canada"
Mr. Clark: "Are you aware that the
Canadian railroads in case have admitted
that. SO far as their traf1c between Canada
and the United States is concerned, they
are under the jurisdiction of our interstate
commerce commission?
Mr.. Gall: mo. was not.
Mr.. Clark: you can bring your COM
plants before that commission"