The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1904-05-06
YOUNG STATE OEFIES
ROCKEFELLER TRUST
South Dakota Makes Standard
OIL Furnish llIuminant Ac-
cording to Law.
WANTS TO SELL CHEAPER
Though the standard Raised the Price
Two Cents Per Gallon il Purposely
Tries to Escape tho
Test.
1sloux City Tribune.l

tSioux City Tribune.)
A second time has the Standard OIL
company been defeated in its attempt
to force South Dakota to give up a
test adopted by the state to secure a
good grade of kerosene. This time
Judge Garland of the federal court at
Sioux Falls has refused to do the will
of the big monopoly.
Shortly after the law went into ef-
feet last July 1, the Standard Oil COM
pany announced it would be tested,
claiming it would not endure the light
of a judicial inquiry. The history Of
the conduct of the Standard Oil COM
pany in reference to the law is enter
tanning.
few days before the law became
effective, it was announced by j. A.
Gheen, the Standard Oil representa-
tive at Sioux City, and by other rep
resentatives, that the price of kerosene
would be advanced about two cents 4
gallon throughout South Dakota. The
new law provided that all kerosene sold
in the state must muster 46 Baume
hydrometer and degree gravity
test. The bill was secured largely
through the efforts of Professor AlSeley,
of Vermillion, S. D., and because of
general complaints that the Standard
Oil company was foisting a poor grade
of illuminant upon the state.
Already Met the Test.
When the advance in the price of
oil was announced by Mr.. Gheen he
was asked the reason for it,
Have you been selling in South Da-
kota any grade of oil that will meet the
46 Baume test?" he was asked.
Yes, we have been giving the people
there one grade testing that we'll or
better"
"Win the price of that grade be .ad-
vanced?"
Yes, for the reson that heretofore
this grade has been sold in barrels al
,rcst altogether. Now we must put 1T
| in the tank wagons, which is naors c->-
penSiNe."
The advance of cents a gallon was
duly made, but, though the Standard
was receiving more money for its prod
uct, anxiety was manifested to be rid
of the law. An altruistic spirit WAS sud
/ denly manifested 10y the big corpora
ton, and the people of the state were
told how much better it would be for
them, and how much cheaper, If the
law were wiped off the books.
Started Test Case.
To assist the state in getting rid of
the obnoxious statute the Standard was
good enough to pay the expenses of a
test case at Pierre, S, d. For some rea-
son, not of record, this case was dis
missed before it reathed a decision.
A few weeks ago the Standard Oil
! company deliberately shipped into
i South Dakota $40 barrels of oil that
! Erauch, state inspector, found that five
of these barrels tested 4412 Baume hy-
| drometer and 51a degree gravity, where
i as the law required 48 Baune hydro
meter and A degree gravity.
When Brauch rejected the oil the
! Standard Oil company, still claiming to
| act in the interest of the people of
| South Dakota, secured a temporary re-
| straining order from Judge Garland to
/ prevent the inspectors from rejecting
i the oil.
Last week the question of whether
| this restraining order should stand un-
til final adjudication Of the right of the
state to impose the test came up for
hearing. The Standard Oil attorneys
| claimed that all these $40 barrels Of oil
| would go to waste or be handled at
loss if the court did not force the in
spectors to keep their hands of.
Set UP Different Reason.
| Further, in the discussion Of the work
ings of the law, the attorneys for the
/ Standard presented different reason for
| the 2-cent advance than that given by
| Manager Gheen last July. Whereas Mr..
| Gheen said the Standard had been selling
| oil in the state that would pass the test,
and the advance was necessary because
I the oil would be sold from wagons in
! stead of from barrels, the attorneys at
Sioux Falls set up the claim that it was
more expensive to furnish q grade of oil
that would pass this test. No explanation
: was made during the trial of the advance
/ in the grade Of oil the Standard has been
/ selling in South Dakota right along.
-1- AZ
| prescribed test could be made only from
crude oil Of the Pennsylvania and West
/ Virginia fields. 1t argued that the
| test resulted in no better oil. however.
| The court was told that If the company
| were allowed TO use Its own tests an
equally satisfactory oil. such as that in
| the $40 barrels, could be supplied at 2
| cents less per gallon.
Found Against Company.
Judge Garland dissolved the restraining
! order finding against tho Standard. He
declared that 1t was asking too much of
1 the court to practically suspend the work
ings of the state Of South Dakota while
the Standard Oil company was testing the
right Of the state to impose this test. AS
for the $40 barrels of oil that might result
i'll loss to the company, the court said
that these conditions were brought about
by the company for the purpose Of max
ing a case in court.
! The case will now proceed to hearing
upon its merits. Upon the question of is
| suing permanent injunction. the court
| will decide whether South Dakota ex-
ceeded her authority in requiring that oil
pass this test.
In the meanwhile. the Standard OH
company is receiving higher prices from
South Dakota. AS the annual sales of
kerosense in the state amount to about
two and half million gallons. 1t appears
that the Standard OIL company has taken
from South Dakota. since last July about
$4,000 in advances in oil prices.