Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-06-09
EI-STAHE SENATOR DAVIS HEARD
Attempt to Bride an Office
Boy,
MIR. WESTGATE' EXPERIENCE

sion, was a member OF the lower house or
the Ohio Legislature. Mr.. Davis is a pro-
Queer of petroleum. and prior to four years
ago was a refner of OIL He testified In
the courts of Marietta regarding the Stand
ard OIL Company. He has been in the oil
business for twenty years.
The failure of his refinery was brought
about by inability to market its product
at a margin sufficient to pay. His firm was
confined to one grade of OIL as it could
not compound oils with other grades.
The Argau Refining Company got the
market for IubriCatinE oils. and sold oil to
the Baltimore and Ohio Southwestern. The
officials Of that road became owners of
large block Of the stock of the Argan COM
Fany. and il made 10 difference what their
quotations were they were not able to sell
10 them.
Same Methods Employed.
Prof Jenks-''Was the Argan company
connected with the Standard Oil Com
pany?"
Mr.. Ddvis-"Not that we knew Of"
Prof. Jeuks-''Was the Argan Company
able to get special rates from the rail-
roads,?
Mr.. Davis-'We had no direct evidence
OF that, but we suspected it. We believed
We were manufacturing as cheaply they,
and that II the freight rates had been equal
We could control some of the trade, but
we Were not able to do it."
Their oil was transported in tank lines.
the witness said. Once he had telagraphed
10 one road for a transportation rate out
of Marietta, and 1t took a month to get the
rate. When they got it 1t was one cent a
barrel more than the rate through the pipe
line.
The oil in the Corning fields was not quite
equal 10 oil of the MaXburg field, and we
sold it at Il cents barrel less. This
ZION was met by the transportation being
made II cents barrel more than oil from
the Maxburg field
In this way ii became just as profitable
for the witness firm to sell to the Stand
ard oil Company, as it would have been to
sell outside This oil was a higher grade
than the Lima oil. handled by the Stand
ard. but it WIS all put on the market at
Jns price As producers they could lot
get their product on the market without
being subjected to extra charges. He had
never been engaged in litigation with the
Standard Oil Company over alleged dis
examinations Of this kind in transportation.
Controlled Large sums of Money.
He said that a good deal of territory had
been bought up by different branches of
the standard Oil Company. and IN some
cases eXorbiJant prices had been paid for
It Their advantage in an action of this
kind was merely because they controlled
large sums Of money. Oil sent through tins
pipe lines Of the Standard OIL Company is
charged with 2lz per cent for leakage and
evaporation, and there is another charge OF
l per cent for insurance He did not know
what right the company had to charge
this insurance, buJ the amount of money
at stake was not sufficient to cause the in
dependent producer to contest it. His com
pasny is now producing from 500 to 1000
barrels & week although their capacity is
very much larger.
Power of the standard Oil Company.
Witness said that his plant could not
utilize all the by-products of refining oil to
utilizing heir products must be in charge
Of an expert. and could only be carried out
in very large oil refneries. He had never
made an estimate to know just what profit
might be secured from these by-products.
He said that today the power of the
Standard Oil Company is such to make
II very hazardous for any one 10 invest any
large amount of money in an oil refinery.
The compromising of oils. he said, is also
another branch of the business which
quires the services of an expert. and the
high grade Of oils frequently sell for very
good prices. He said from his experience
he was satisfied that his competitors had
sold lUbricating oils of the same grade al
different prices
To Corrupt the Office Boy.
on one occasion Mr.. Davis found that his
office boy had been approached by agents
Of the STANDARD Oil and offered money if he
would give them Information In regard TO
MS US -btIltIS- 1 ne boy Idu come TO MIN
and told him about it. and he advised him
TO go ahead, in order 10 see how far they
would proceed In this effort: but for some
reason they did not pursue the matter.
The witness had been compelled to go out
0f the refining business on account of the
competition Of the Standard Oil Company.
and is only a producer of oil. selling
his product TO that company.
Since he had been driven out of business
prices in his section had been restored to
1 uniform basis and hf r6e ed he
genera average of prices, as probably
higher than they were in that section when
he was refining oil. He told of one in
stance in which water had been put in bar
rel= OF oil. and distributed where he was
doing business. in order. as he believed
10 produce the idea that he was selling oil
- adulterated. but as it turned out he was
able 10 snow that the oil was not in bar
rels that had come from his refinery and
IL resulted in benefit To him among the
trade. He said that chemicals and other
things used il the refining of<il today
lower III price than they We're twenty
years ago. although the iron used in va
rious ways for producing oil has within
the last four months very materially ad-
vanced IN price.
Price of OIL.
Mr.. Philips asked questions which
brought out the fact that in COM
pairing prices OF oil today, with prices of
twenty years ago. to show the cheapeniug
value Of the by-products.
The witness also stated that the Argan
oil Company had within a year been
bought by a branch Of the Standard OIL. on
basis Of Is per cent on S2OOUIO He could
reproduce the works Of the Argan company
Tor $I5npo but in reply to a question said
that the higher price was probably paid in
consideration OF the good will.
Mr. Davis had no suggestion 10 make in
regard 10 the legislation that was necessary
70 control the Standard OIL Company He
said that practically the Standard Oil and
other companies operating in connection
with 1t used the same methods that would
be used by men In other lines of business
he also said that even under present condI-
tons the oil industry is profitable for in
dependent producers, the profit VARYING
considerably by the character of the wells
that are sunk. Some Of them are very ex
pensiye and others very remuneratIyA He
knew nothing in regard TO the price maid
by railroad companies for the oil thew nur
chased from the Standard Oil Comnanv
He said that wages paid men engaged in
the production OF oil were very good OK
N,-TuT A,g,, II I.