The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-11-24
OIL COMPANY'S SUCCESS
VICE PRESIDENT MoFFATT. OF THE
STANDARD, TALKS OF 1T.
VIII Re No Fight Between the Con-
Germ and the Cudahys-ChicaSo
Oil and Lard.

Vice President Moffatt. of the Standard OIL
Company. was in the city yesterday consult
ing with State Oil Inspector caring. In con-
nection with the present abnormal activity
in all lines Of business. Mr.. Moffatt init
mated that prosperity is no new thing 10
the Standard Oil Company. and TO Illustrate
his point he said that when the Whiting
factory. which is the largest In the world,
was established in lSSS. 1t was found that
the enormous engines could not be set up
on time because the cylinders made Tor II
were defective. The company was at that
time far behind on orders and indicated to
the manufacturers of the engine that the
contract must be lived up to. as the wno.e
business OF the company would be dlsar-
ranged by the contemplated delay. Accord
ingiy, the engine makers sent on an OLD
pair of cylinders and attached them to the
engines. saying that. as soon as the new
ones were ready. they would change them.
That was over ten years ago and the new
cylinders were ready 20 long ago that they
are now out of date. But they have never
been put on the engine because the Stand
ard Oil Company found that the old ones
did the work satisfactorily and refused TO
allow the engine to stop long enough to
make the change. although 1t would require
but a few hours. Mr.. Mofatt says that
times are always good with the Standard
Oil Company, and that the engine referred
to has not stopped since 1t was started,
eleven years ago.
1t has been learned definitely that the
consolidation Of oil interests in Ohio and
Indiana some time ago to fight the Stand
ard Oil Company was effected by the Gu
dahys, of Chicago, who secured the coop
Grafton OF all oil companies In the field ex-
cept the Manhattan Oil Company. of Ohio.
In discussing this movement. Mr.. Earring
said there was small probability of any
refinery being established in this city. and
he had been informed that all oils from
this field would be treated at the new re-
fnery at Kankakee. ILL.,. where the Cudahys
have large interests. He Is under the I'M
preston. from what has been tod him. t'at
the STANDARD Oil people will not attempt
to fight the Cudahys for the peculiar reason
that viii e the Cudahys have millions In
vested in the oil business, they are still 100
weak to justify the Standard people in fight
Ing them.
In explaining this apparently paradoxical
statement. Mr.. Earring said that the millions
which the Cudahys have invested in oil are
but as a drop In the river compared TO what
the Standard oil Company has invested. He
says II is admitted that. as against all COM
ICGNOlS IL CNCl1 NCSNl iHblbhs NAC
oil Company does 90 per cent. of the bust
ness of the country, while the remaining 10
per cent. is divided between many smaller
concerns and each is enabled TO make a
handsome return on its investment. The
reason why these concerns are too small,
either Jointly or severally. for the Standard
to fight is that the Standard people figure
that. inasmuch as they do so per cent. of
the business at an enormous profit. they
would OF necessity. in q fight; he compelled
TO stand 30 per cent. OF the loss, and per-
haps the entire loss from the fact that IL
the Standard Oil Company in order TO hurt
its competitors, cut the price of oil, the
small operators would not attempt to do
business and the result would be that the
very enormity Of the business done by the
Standard would be the means of undoing
the company. for. while the smaller con-
Germ. would suffer perhaps a slight loss.
the Stan1ard would sink millions every day
in SURVIVING Its tremendous custom at a
loss. Therefore. the Standerd Oil Company
intimates that. as lorg as it is able to con-
troll Its present percentage of trade. ii will
be poor business policy to fight the smaller
concerns. who really do not hurt the large
concern.
THE Low PRICE OF OILS.
1t is Mr.. Earrings opinion that the pres
ent low price of Illuminating oils is not due
to either philanthropy on the part of the
company or close competition. nasmuch
as the Standard Company is in a position
to dictate the price OF oil to the world at
oig AhhC lCSdiQltcS Va hS COLilVClllOIS- ~
is the gas and electric lighting companies
that have knocked down the price of oil,
and the purpose OF the company is merely
to keep 1t low enough so that enough peo-
pie will use II in preference TO gas or cleo
tricity to consume all the Standard dan pro-
duce. In the case Of Illuminating oils. how
ever, the prices are not so low: In fact,
there is q difference which the cost OF pro-
ducing does not justify. This condition Is
the result of the company having the lub-
ricating field all TO itself with the excep-
packing houses can create on lard oil. This
IS not serious, however, as lard oil cannot
be produced below a certain figure, while
mineral oil. such as the Standard produces,
cen be marketed at many notches below
what II is bringing now.
In discussing lard oils. Mr.. Earring said
that whtle the lard packed by the big Chi
cago firms was in general demand. 1t was
a poor article to buy as a general thing. as
the packers nearly always extract all the
lard oil from IL before putting Ii on the
market. leaving a residue which has sich
poor lubricating qualities that II is hardly
mt to use In frying meat. He said that an
tnrallible test for lards 10 TO feel IL with the
fingers. In the pure lard. such as is packed
oy small dealers and farmers, there are al
ways found gritty particles. which are per-
ceptible both to the eye and touch. Pure
lard. he says. should have the appearance
or sugar which IS being worked into candy.
ON TIE contrary, the lard offered by the
big Chicago packers is Slick and fine
grained. lacking altogether the gritty sub
stances found in the pure lard. and which
Is The best portion of the lard.
Mr.. caring intends to start in a few days
Tor a Visit 20 the general offices OF the Gu
dahys. who have notified him that they in
tend to have their product on the market
within a short time.