The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1899-09-07
STANDARD
OIL COMPANY
is REVIEWED
From q Strictly Corporation View
of the Matter Before the In.
dustrial Commission.
EDITOR DOYLE SAYS
About the History of the Combine.
Claims the Standard has
Been Much MaIlgned.

QuSIFlul SOLlullsbluu EG9uLASu 10 oAN-
tings in this city to-day. P. C. Boyle,
editor of the Oil City Journal. 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 pro-
ducers generally. He said that the
Standard OIL Company had afforded no
occasion for criticism for the past ten
years.
He had come before the commission
upon his own initiation, and not in re-
sponse to the solicitations of the STAN
dard Company.
Mr.. Boyle read prepared statement
of great length. 1t was a general re-
view Of the history of oil production
in the United States. In reply to a
question, Mr.. Boyle said there was now
no tax on the oil production.
would not such tax be good
source of revenue?" Mr.. Livingston
asked.
ut would be a source Of revenue,
certainly" the witness replied, ''but I
am not prepared to say that 1t would
be a good source. either for the pro-
ducer or the consumer"
Coming to the year OF 1872. Mr.. Boyle
entered upon the history of the South
Improvement Company, one Of the first
efforts to form a combination Of the oil
interests. This organization was, he
contended, the result of a movement
by the railroads, and not by the oil
men.
"The Standard oil Company" he
added, has been much mallgned In
connection with this organization"
The purpose of the combination was
to give special dlfferentlal rate, he
said. but there was SO much complaint
between the oil interests that the pur-
pose was not carried out
Replying to Mr.. Livingston, Mr.. Boyle
said that he did not know that any ad-
vantages were now extended to the oil
producers or reflners.
At the afternoon session. Mr. Boyle
gave "a history of the construction Of
the various pipe lines connected with
the oil industry, for the purpose. as he
said, OF showing how the consolidation
was ultimately reached
Mr.. Livingston urged that the history
be omitted, saying that II each witness
was to be prepared to enter upon such
detail a thousand volumes would be
required to print the proceedings.
Boyle's Own Way.
The commission decided, however. to
hear Mr. Boyle In his own way. Origin
ally, he said, the pipe lines were mere
ly transporters OF oil, but later they
became buyers. Each paid Its own
prices, so that by 1877 the competition
had become so sharp that none OF them
were able to sustain themselves. To
save themselves. they then began to
consolidate, under the name Of the Uni
ted Pipe Line Company, with n capI-
tai OF SS,OOO,OOO There was no doubt
that the competition had been the cause
Of this consolidation. The business
could not have existed long II the
companies had not united their inter
ests.
In reply to question he said that the
United Pipe Line Company was a part
of the Standard OIL Company system,
and had been practically from the be-
ginning of the history of the line. There
had been a constant Increase OF produc-
tlon soon after this consolidation, until
1856. when there was daily production
OF $1,000 barrels, with the necessary re-
suit of n rapid decline in prices. This
condition cHused the organization OF
the Producers Protective Association,
which is In existence to-day. This or
ganizatIon was separate from the
Standard OIL Company. though work.
ing in harmony with 1t. As result
of this consolidation crude oil advanced
20 cents per barrel. There had, how
ever, not been a corresponding increase
in the price Of the refined oil.
Mr.. Boyle said that while he had
heard a great deal Of the reduction of
prices by the Standard oil Company to
destroy competition. he knew nothing
of any such practices. Certainly no
such practice existed In the oil country,
and he knew nothing about operations
elsewhere. He thought It probable
that low prices had been made In order
to dispose OF the surplus stock at DIFF
ferent times.
Giving the statistics OF oil production
to the present time, Mr.. Boyle said that
in the thlrty-eIght years OF the history
of the industry, lOO.S3i wells had been
sunk, at cost of $3.50, 12l, 900, the value
of the crude oil product being $77s,77l
900. OF this amount ne estimatcd that
SlOi. 100000 went to the land owners.
Deductlng all expenses, the profits OF
the producers for the entire period
amounted to $2G3,OOO,OOO.
He introduced a table to show that
since 1870 the production OF oil had In
creased to the extent OF four hundred
per cent, while the price had dcprcclat-
ed 10 per cent.
Speaking OF the Pure oil Company,
Mr.. Boyle said 1t had become vcrIta-
BILE trust, being In reality the only oil
trust, It was. he said, far more socrc-
tive In Its methods than the STANDARD.
He declared that the Independent move
ment had had no effect in the way OF