The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1907-10-05
FORCED TO SELL OUT
Witness Tells Of Oil Trusts War
on Its Competitors.
METHODS OF The OCTOPUS
Cut Prices In Territory Where inde.
pendents Did Business and the Lat
ter, in Many Cases, Were Compelled
TO Give Up and Sell Out.

New York, Oct. 5--W. w. Tarbell,
treasurer Of the Pure Oil company
and the United States Pipe Line com
pany, testified in the government 5
suit to dissolve the Standard Oil COM
pany. Mr.. Tarbell said the Standard
fought tho United States Pipe Line
company at every step to prevent it
from reaching the seaboard with its
pipe line. Mr.. Tarbell is brother of
Miss Ida Tarbell who has written ex-
tensiyely Of the affairs of the Standard
OH company.
When the pipe line reached Han
cock, Pa, in 1892, Mr.. Tarbell said,
the Erie railroad objected to its pass
ing under their right of way and at
Wilkesbarre the Pennsylvania and
I-ackawanna railroads tried to pre-
vent the pipe line passing under their
tracks. Mr.. Tarbell said the National
Transit and the Tidewater Pipe Line
companies had secured the privilege
of passing under railroad tracks. Mr..
Tarbell said that while the independ-
ent pipe line was being constructed
the Standard cut prices and the inde-
pendent refineries were forced in
some instances to sell refined oil un-
der the cost OF crude oil. When the
independent pipe line reached Marcus
Hook, Pa, the witness said, further
cuts were made In prices by the
Standard and three independent COM
panies-the International Oil COM
pany, Union Refining company and
the S. Y. Ramage company-gave up
the fight and sold out. The Stand
ard. he said, bought the refineries and
through the purchase obtained con-
United States Pipe line. He said the
Standard had no interest In the Pure
Oil company.
Cuts Prices on Competitors.
Mr. Tarbel said that in 1900 the
Pure Oil company purchased nearly
all the stock of the Producers Oil
company, limited; the Producers Re-
fining Oil company, limited. and So
per cent of the stock of the United
States Pipe Line company In the
early nineties, Mr.. Tarbell testified, a
trust agreement was entered into by
stockholders in the Pure Oil COM
pany to prevent interests inimical to
the company from obtaining control.
Mr. Tarbell said the Standard cut
prices In Philadelphia so that the
Pure Oil company was forced to with
draw from that market. The Stand
ard cut prices in this city and for
three years the Pure Oil company lost
money, after which the price rose so
that the company now is doing a
profitable business.
Mr. Tarbell testified that the Pure
OIL company laid out districts In
which to do business so as to keep
away from certain railroads which
were more to be feared because Of
their determinations than the Stand
ard Oil company These discrimina-
tions We're in favor of the Standard
Oil company, Mr.. Tarbell said
George Chesebro, accountant for
many of the subsidiary pipe line com
panies of the Standard Oil company,
followed Mr. Tarbell on the stand and
through him Mr.. Kellogg placed on
record many statements showing earn
ings, costs and charges of various
character in transporting oil by pipe
line companies Most of the afternoon
session was consumed in getting the
statements on record
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