Cameron County press. [volume] (Emporium, Cameron County, Pa.) 1866-1922, 1899-06-15
Story of Fierce Competition
Is Told by Them.
FINALLY HAD TO YIELD.
Rival Companies Driven Out Of
the Oil Business.
MORE ABOUT THE STANDARD
The Big Company l. said TO be Sup-
piled with Secret Information as to
the Business Of Its Rivals whenever
Required.

Required,
Washington, June 1O.-Ex-Senator
Theodore f. Davis, of Ohio, was a wit
ness before the industrial commission
Friday. lie is both a producer and
retincr of petroleum at Marietta and
his testimony dealt with the opera
tions Of the Standard Oil trust and the
Argan Oil Co. He complained of the
determinations of the railroad COM
panies. saying that the managers OF
some Of the roads were interested in
rival companies and the other COM
panicS were 50 favored that his COM
pany had been compelled to suspend
business. This discrimination was
also practiced by the pipe lines against
producers who did not control these
lines. In such cases they were also
unable to secure fair rates from rail-
roads, forcing the conclusion that the
railroad companies were concerned for
the success of the pipe lines.
Mr.. Davis said that the Standard
had been able to come into the control
of most of the producing area and this
was accomplished through co-opcrat-
inc companies. He said that as re-
finer he had purchased considerable oil
from the Standard Co. and that ii was
the custom of the Standard to charge
up its losses of oil by fire. leakage,
etc. in any given district to the pur-
chasers in that district, distributing
the loss among them. He also said
that the Standard company had such
close relations with the railroad COM
panes and so completely controlled the
! II i'm,
ticablr for any other refiner to enter
upon the manufacture of such bi-pro-
ducts as lubricating oil.
He stated that on one occasion Il
shipping clerk of his firm had been APP
preached by the Standard and offered
money for information as to the busi-
ness of the concern. This scheme
had failed, owing to the fidelity of the
clerk. but the firm became satisfied
that the Standard had information of
every barrel shipped by his house.
Every shipment was followed up and
| the consignees approached with offers
! of oil IT lower rates. The compete
tors also resorted to duplicating his
brands and sending out under them
inferior articles of oil. The COMPETE
lion had at last become so fierce that
| his house had been compelled to go
out of business.
Mr.. Phillips 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 express an opinion on this point,
saving he did not know. II was a fact,
| he said. that the Standard company
| bad purchased several refining plants
| and had then dismantlcd them, but
he was not prepared 10 say that such
refineries were well enough located to
render it profitable to maintain them.
Mr.. Davis was followed by Mr.. II. L.
Westgate, an oil retiner at TituSville,
| Pa. Among other companies in which
he is interested is the Pure Oil COM
pany. lie said that in both New York
| and Philadelphia the Standard COM
pany had reduced the price of oil inn
mediately upon his company entering
| the field and that, owing to this reduc-
ton. oils were now being sold in both
markets at prices which rendered the
business Improbable. Mr.. Davis re-
lated some of the particulars of his
competition with the Standard. saying
that the Standard managers kept a
| strict account of all the oil sent out by
| rivals.
His general policy was to try to get
only n small percentage of the buSi-
ness in each place and he had found
| that so long as he pursued this plan
prices could be held up, but that if he
| endeayored to increase the quantity
| prices were Immediately reduced, with
the intention of driving him out Of the