Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1899-06-13
AN OIL INVESTIGATION.
Alleged Methods by Which Big
Company is Said to Con-
troll Trada

Washington, D. c., June ok State
Senator Theodore f. Davis of Ohio was
the first witness before the industrial
commission today. He is both a pro-
ducer and refiner of petroleum, located
at Marietta and his testimony dealt with
the operations of the Standard Oil trust
| and the Argand Oil company. He COM
planned Of the discrimination of the rail-
road companies, saying that the man
ayers OF some Of the roads were inter-
ested IN rival companies and the other
companies were so favored that his COM
pany had been compelled to suspend bust
ness. This discrimination was also prac-
tlced by the pipe lines against producers
who did not control these lines. In such
cases they were also unable to secure
tar rates from railroads, forcing the con-
cluslon that the railroad companies were
concerned for the success of the pipe
lines.
Control of the Markets.
Mr.. Davis said that the Standard COM
pany had been able to come into the con-
troll OF most OF the producing and this
was accomplished through operating COM
panies. He said that as a retiner he had
purchased considerable oil from the
Standard company, and that it was the
charge up its losses Of oil by fire, leak
age, 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 companies
and so completely controlled the markets
as TO render 1t almost lmpracticable for
any rehner to enter upon the nanufac-
ture of such products as lubricating oil.
lie SAID that on one occasion a shipping
clerk OF his firm had been approached by
the Standard company ana offered mon
ely for information as to the business OF
the concern. This scheme had failed, ow-
ing to the fidelity Of the clerk, but the
firm became satisfied that the Standard
company had information of every barrel
shipped by the house. Every shipment
was followed up and the consignees APP
preached with offers of oil at lOE~er
rates. The competitors also resorted to
duplicating his brands and sending out
under them inferior articles of Oil. The
competition had at last become SO fierce
that his house had been compelled to 50
out Of business.
Mr.. Phillips asked Mr.. Davis if it was
not a fact that the profits of the Stand
ard company were not greater on each
barrel Of Oil sold than the cost of the ar
ticle, but the witness declined to express
an opinion on this point, saying he did not
know. 1t was fact, he said, that the
refining plants and had then dismantled
them, but he was not prepared to say
that such rehnerieS were well enough To-
Gated to render it profitable to maintain
them. Neither was he prepared to say
that any oil company was engaged i'll
practices to which any other would not
resort to get business under the same
circumstances.
How Prices Were Cut.
r.,
gate, an oil refiner at Iitusville, Pa
Among other companies in which he is
interested is the Pure Oil company. He
said that in both New York and Philadel-
phia the Standard company had reduced
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..
Davis declared that the Standard man
ayers kept d strict account of all the
oil sent out by rivals. His company was
IN the habit of. protecting customers
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 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 morning
just what his shipments had been the
day before. He could not say that the
railroads supplied the information, but
he knew that it did not go 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 competition
was sharper than the standard company
enjoyed.