Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-12-14
STANDARD OIL METHODS
Mr.. Page Continues His Testimony Before
the Industrial Commission.
Russia the Greatest Competitor to the
American PrOduct-Denia1 OF
Mr.. Rice's Charges.

| mon ldiih Line company, cOntlnOeQ MS
testimony before the Industrial commission
yesterday afternoon after The Stars report
was closed.
ted that the Standard Oil Company re-
ceived rebates before the interstate COM
MERGE law was enacted.
The witness replied that the Standard Oil
Company got as low rates as it could,
and rates less than published rates. which
was done by all other shippers of oil. He
could state that the Standard Oil Company
never made any agreement in regard to
the rates that other shippers of oil should
get. 1t had found that other companies
got lower rates than 1t got in some
cases. In one case in the south a COM
petitor of the Standard Oil Company was
enabled to sell cheaper than it because
1t was receiving cheaper railroad rates.
He said the Standard had not received a
share of the rate paid a railroad by any
other shipper of oil. He was positive that
that had not been done since he had been
vice president of the Union Tank Line
Company. Tho Standard had never OBJ
structed other oil companies In getting
ocean transportation.
Exports of Petroleum Products.
In reply to a question by Mr.. Kennedy
Mr.. Page said the exports of petroleum
products by the Standard company are in
excess Of its sales in the United States.
In other words, he said, 1.-The larger
share of the Standard Oil Company's bust
ness in volume Is outside of the United
States. In regard to the relative prices,
the consumer Of oil in the United States
gets his oil for very much less than the con-
sumner OF that same oil abroad. and that IS
due principally to the fact that we have
facilities within the United States for cheap
ly distributing the oil to the consumer that
the company has not abroad. In connection
with that Mr. Rice referred to the price of
oil at New York for export as compared
with the price of oil in Montana and Idaho,
and tried to convey the idea that we sell our
oil abroad for less money than We sell it
to the consumer IN the United States. / sub
nit that the price of export oil at New York
Is the price per cargo at the mouth of the
refinery, whereas the price of oil In Mon
tana and Idaho must necessarily have
added to it the freight charge from Chica-
go, for instance. to these western states.
To compare in one case the price of bar
rel of oil In the mountain district Of Mon
tana and Idaho with export oil at New
York Is manifestly unfair"
Mr.. Page said he had read and believed
that the German government had issued
an order to the railroads under government
control to burn exclusively Russian oil and
not American.
Russian Oil the Great Competitor.
Mr.. Smyth asked If the great competitor
on the continent was Russian oil.
Mr.. Page said the Russian field was the
grea. competitor of the American petro-
leum field.
The production Of oil in Russia"
he said. Il believe to be equal 20
that of the United States, and at times
1t has been in excess of it. In fact I have
known Of reports Of one well in Russia that
has produced 1009o0 barrels Of oil a day,
which Is as much as the entire Pennsyl-
vania oil field. and the price of Russian
crude oil Is very much lower than the
price of American crude oil. Its quality
is not good as Pennsylvania oil 1t is
more like the oil from the Ohio field"
Mr.. Farquhar asked regarding the ocean
transportation facilities of the Standard
Oil Company for its foreign trade The
witness replied that it has some tank
ships for shipping oil to certain places in
Europe. where they have tank facilities for
receiving it, 1t also has some ships for
shipping case oil to the far east.
I'VE sell all over the world as far as we
can. replied Mr.. Page In response to n
question. We have very severe COMPETE
ton from Russia, whence oil is transpor,ed
in tank vessels"
He said there were a large number of
foreign agencies of the Standard Oil Com
pany. 1t would be easier. he said, for him
to name the countries in which the stand
ard does not sell than to name those III
which 1t does business. 1t was usual, he
said. for the company to send Americans
abroad to take charge of these foreign lie
partments.
Ao"aIu independents.
Mr. Phillips-"Quite number Of jn,le-
pendents have an advantage over the
Standard in certain localities. Has 1t been
the practice of the Standard, where the
Independents have sought to sell OF, to
snip their oil there and unlersell them,
usually at price to allow Others no
proft?'' "
Mr. Page-'1 can only say In a general
way that we doubtless ship the oil to the
nearest point and try to sell 1t. The effort
and success of the Standard OIL Company
are to reduce the price of refining and
handling oil SO that 1t may sell cheapIy to
the consumer, and thereby increase the
volume of Its business"
Mr.. Page explained that the railroads re
celVe a very much larger percentage of
live weight on oil in tank cars than on oil
In barrels Railroads charge and collect
freight on tank-car shipments at full ca
pacity of the tank car, whether loaded full
or not.
Questions to n Letter
Mr.. Smyth asked the witness if he knew
how Mr.. Rice got possession of the letter
from Chess. Carley & Co. to the Louisville
and Nashville Railroad Company, in which
1t was said turn another screw" referring
to a correction of the charge to Rice for
shipping his oil.
The witness said that after the correction
OF the rate charged Rice brought suit
against the Louisville and Nashville Rail-
road Company, and that that company it
self sent this letter to Rice among its pa
pers. From that fact, he said it could be
seen that they did not construe 1t in the
way Mr.. Rice Interpreted it. The letter
was not written by a member of the firm of
Chess. Carley & Co., nor seen by them be-
fore 1t was sent.
Mr.. Page explained other parts of Mr.
Rice's testimony.
In reply to a question by Prof. jerks the
witness said he did not know that the