The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1899-06-10
Run OUT OF BUSINESS
Theodore F. Davis of Ohio
Relates His Experience
WITH THE STANDARD OIL
Mr.. Westgate Also Details
Some Sad "reminiscences
WITH THE STANDARD OIL

Washington. D. c.. June 9.-Ex-state
Senator Theodore F. DAVIS Of Ohio was
the first witness before the Industrial com
mission today. Mr.. Davis said that the
Standard Oil company had been able to
come into the control OF most OF the pro
ducing area through cooperating com
panies. He declared that as a refiner ne
had purchased considerable oil from the
! Standard company and that it was the
custom Of the Standard company TO cha.g
| up its losses Of oil by fire, leakage, etc.
in any given district 10 the purchasers in
/ that district. He a,sO said that the Stan
| dard company had such close relations
with the railroad companies and 50 COM
/ pletely controlled the markets as 10 rem
! der it almost impracticable for any re
finer 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
| as to the busiess Of the concern. This
scheme the clerk refused. bat the firm be-
| came satisfied that the Standard company
| had information of every barrel shipped
/ by his house. Every shipment was fol
lowed up and the consignees approached
/ with offers Of oil at over 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 com
! PEELED to quit business.
| Mr.. Philips asked Mr. Davis If It was not
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 It was fact, he
said that the Standard Oil company had
| purchased several refining plants and then
| dismantled them but ne was not prepared
TO say that such refneries were well
| enough to render it profitable to maintain
| them Nor was he prepared to say that
any oil company was engaged in prac-
tees which any other would not resort 10
to get business under the same circum-
stances.
Mr. Davis was followed by Mr.. T. [.
! Westgate, an oil refner Of Titusville, Pa.
Among other companies in which he is in
terested is the Pure Oil company. He
said that in both New York and Phila-
delphia the Standard company had re-
! duCed the price of oil Immediately upon
his company's entering the field. and that,
owing to this reduction. oils were now be-
ing sold in both markets at prices which
render the business improbable.
Mr. Westgate gave some particulars Of
his competition with the Standard COM
| pany. saving that the Standard managers
| kept a strict account Of all the oil sent out
| by rivals. His company was in the habit
| of protecting customers where necessary.
| His general policy wa sto try 10 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 he held
| up. but that if he endeavOred to increase
the quantity prices We're Immediately re-
| duced. with the intention Of driving him
out Of the field Mr.. Westgate had no
doubt that the Standard company knew
each morning just what his shipments had
been the day before. He could not say
that the railroads supplied the informa-
ton but he knew that it did not 20 from
his own office. He also 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 compe-
tition was sharper than the Standard en-
| joyed.