The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-09-07
INDUSTRIAL COMMISSION
TT RESUMES THE TAKING of TEsTI.
MoNY AT WASHINGTON.
History Of OIL Production m Related
rick-Methods Of Trusts. -

WASHINGTON, Sept. 6-The industrial
commission resumed its sittings in this city
to-day. p. c. Boyle, editor OF the OIL City
Derrick, said, in reply TO questions. that
he owned the majority of the stock of the
paper. and that 1t was the organ OF the
oil producers generally. He said that the
Standard Oil Company had afforded no oc-
casicn for criticism for the past ten years.
He had come before the commission on his
own initiative. and not in response to the
solicitation OF the Standard Company. Mr..
Boyle read a prepared statement Of great
length. 1t was a general review of the his
tory Of oil production in the United States.
In reply to a question. Mr. Boyle said
there WIS now no tax on the oil production.
Would not such a tax be good source
Of revenue?" Mr.. Livingston asked.
1T would be source of revenue, Ger.
tainly." the witness replied. '.but am not
prepared to say that it would be good
source either for the producer or the con-
sumer"
Coming to the year of 1872 Mr.. Boyle en-
tered upon the history of the South Inn
provement Company, one Of the first efforts
to form a combination of the oil interests.
This organization was. he contended. the
result of movement by the railroads ard
not by the oil men. The Standard OH
maligned in connection with this organiza-
tion." The purpose of the combination was
to give special differential rate, he said.
| but there was so much complaint by the
| OIL interest that the purpose was not car
ried out.
Replying to Mr., Livingston, Mr.. Boyle
said he did not know that any advantages
were now extended to the oil producers or
refiners.
| At the afternoon session Mr.. Boyle gave
history of the construction of the various
pipe lines connected with the oil industry,
for the purpose, as he said. OF showing how
consolidation was ultimately reached. Mr..
| Livingston urged that the history be omit
ted, saying that IL each witness was to be
prepared to enter upon such detail thou
sand volumes would be required to print
| the proceedings. The commission decided.
however. to hear Mr.. Boyle In his own way.
Originally; Mr Boyle said the S pipe pip Lines lines
they became buyers. Each paid its own
price. SO that by 1877 the competition had
| able to sustain themselves. To save them
selves they then began to consolidate un-
der the name Of the United Pipeline Com
was no doubt that the composition had been
the cause Of this consolidation. The busi-
Companies had not united their interests.
| In reply to a question he sail tha. he
| United Pipeline Company was part cf tIe
been. practically. from the beginning OF
| the history of the line. There had been
constant increase OF production soon after
| this consolidation until 1885, when there
was daily production OF 5000 barrels,
with the necessary result of rapid de-
In Of the
Association. which Is In existence to-day.
| This organization was separate from the
| harmony with IL. AS result or this con-
| soidation crude oil advanced y cents per
barrel. There had. however. not been a
| corresponding increase In the price or the
| refined oil.
Mr. Boyle said that while he had heard
the Standard Oil Company 10 destroy COM
| petition. he knew nothing of any such prac-
| tice. Certainly TO such practice existed in
| operations elsewhere. He thought IL prob
| able that low prices had been made IN order
to dispose Of surplus stock at different
Giving the statistics of oil production to
| the present time. Mr.. Boyle said that in
the i5aTsry wells haS been sunk
/ at cost OF s232 coo. the value OF the
crude oil product being sI1s.l7loo or this
/ TO the land owners. Deducting all ex-
penses, the profits of the producers for the
entire period amounted to sIsScoooco; ~, be
| the production OF oil had increased 10 the
extent of 100 per cent. while the price had
speaking of the pure Oil Company. Mr..
| Boyle said IL mad become a veritabie trust.
| being I'm reality the only oil trust IL was.
| than the Standard. He declared that the
| independent movement had had no effect
| I'm the way OF reducing the prices OF oil.
IT had however, resulted In improving the
fortunes of some OF the reiners. who were
| making a great deal OF money, Mr.. Boyle
| reflected rather severely upon the inde-
pendent companies.
When the commission adjourned for the
| day Mr. Boyle had not concluded his tes-
| timony He will continue his statement
| tomorrow. -
The Industrial Commission viii send Its
! subcommissions on manufactures. on trans
| portation and on agriculture 10 Chicago ana
| other points West some time during tho
| autumn to conduct inquiries as TO the con-
| ditions that severally interest them In that
| ON agriculture found at its sitting I'm the
| West that the agricultural ills in that sec
ton are largely associated with the trans
| portation problem. and that there IS work
for the transportation subcommission 20 at
4 m