The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-06-09
PIRATICAL METHODS
Charged Against the Standard
Oil Company.

washington, June 9.-State Senator
Theodore F. Davis, of Ohio, was the
first witness before the industrial COM
mission today. He is both a producer
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 Determinations of the
railroad companies, saying that the
managers Of some of the roads were
interested in rival companies which
were so favored that his company had
been compelled to suspend business.
This discrimination was also practiced
by the pipe lines against producers not
in the combine. Outsiders were also
unable to secure fair rates from rail-
roads, witness averred, forcing the
conclusion that the railroad compa-'
MES were concerned for the success of
the pipe lines.
Mr.. Davis said that the Standard
company had been able to come into
the control of most of the producing
area through cooperating companies.
He declared that a refiner he had
purchased considerable oil from the
Standard company and that it was the
custom of the Standard company to
charge up it's losses of oil by fire, leak
age, etc, in any given district to the
purchasers in that district.
He also said that the Standard COM
pany had such close relations with the
railroad companies and so completely
the DldTkSlS DIS " I6IloGI II
almost impracticable for any refinery
to enter upon the manufacture of lubri-
cantS.
He said that on one occasion a clerk
of his firm had been offered money by
the Standard company for information
as to the business of the concern. This
scheme the clerk refused, but the firm
became satisfied that the Standard COM
pany had information of eyerV barrel
shipped by his house. Every shipment
was followed up and the consignees ap-
preached with offers of oil at lower
rates. The competitors also reSOrted to
duplicating his brands and sending out
under them inferior articles of Oil The
competition became so fierce that his
house was compelled to quit business.
Mr.. Phillips asked Mr.. Davis if it was
not a fact that the profits of the Stan
dard company were greater on each
barrel of oil sold than. the cost of the
article, but the witness declined to an
swer, pleading ignorance on the point.
1t was a fact, he said, that the Stan
dard Oil company had purchased sew
eral refining plants and then disman-
tied them, but he was not prepared to
say that such refineries were well
enough located to render it profitable
to maintain them. Nor was he prepared
to say that any oil company was en-
gagged in practices which any other
would not resort to to get business I'M
der the same circumstances.
Mr.. Davis was followed by Mr.. T. U.
Westgate, an oil refiner of T1tusville
Pa. Among other companies in which
he is interested is the Pure Oil COM
pany. He said that in both New York
and Philadelphia the Standard COM
pany had reduced the price of oil i'm
mediately upon his company's entering
the field and that owing to this reduc-
ton, oils were now being sold in both
markets at prices which render the
business Improbable.
Mr.. Davis gave some particulars of
his competition with the Standard COM
pany, saying that the Standard man
ayers kept a strict account of all the
oil sent out by rivals. His company
was in the habit of protecting custom
ers where necessary. His general pol
icy to try to get only a small per
centage 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 in
crease the quantity prices were imme-
diately reduced with the intention of
driving him out of the field.
Mr.. Westgate had no doubt that the
Standard company knew each morn
ing 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 eniOyed