The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1907-07-16
DENIED BY OIL TRUST
Octopus Replies to Allegations in
Government Suit.
DID NOT STlFLE COMPETITION
Asserts That Unlawful Deals Charged
Against the Corporation Were Le-
Ultimate and Not for the Purpose Of
Monopolizing the Trade.


Monopolizing the Trade.
st. Louis, July 16.-The answer of
the Standard Oh company and It's
allied companies and officers to the
action brought against them here by
the federal department Of justice was
fled during the day. Taking up each
OF the specific allegations Of the com.
plant 1t denies that the defendants
have engaged in any conspiracy in re-
straint Of trade in Oil; that it has at.
tempted to stiae competition by COM
polling competitors to sell out; that
1t has crushed competition or that 1t
secured rebates which were denied to
Its competitors.
Special denial Is made that in 1876
and 1877 the Erie and New York Cen
trail Railroad companies made prefer
entail rates to the Standard Oh COM
pany on shipments of oil from West
ern Pennsylvania to New York as low
as 20 cents per barrel for oil, while
competitors were compelled to pay
$40 to Sits for similar Shipments
The higher rates are declared to have
been we'll known to all shippers as
nominal and that they knew that the
actual rates were matters Of special
arrangement between the shippers
and the railroads because of the rate
then prevailing between railroads anx.
1ouS to secure oil traffic.
Denial Is also made that these pref
ercntial rates were made to enable
the Standard Oil company to make
war on the Empire Transportation
company or destroy it's competition
The answer denies that an agreement
was made between the Standard Oil
company, the Erie, New York Central
and Pennsylvania Railroad companies
In 1877 by which the oil traffic was
divided between these roads under
an agreement to pay the Standard OH
company an exclusive rebate Of 10
per cent.
its Intentions Legitimate.
The allegation that the Standard Oil
company forced a sale of the business
OF the Empire Transportation COM
pany Is denied, but it is admitted that
the Standard bought out the business
In order to extend its own.
Denial is made that In 1872 or 1882
the Standard Oh company secured a
monopoly Of the pipe lines from the
Western Pennsylvania oil field, en-
abling it to fix the rates of trans.
portation, or that the Standard OIL
company caused the railroads to dis
criminate against competitors or to
monopolize the commerce in oil.
Admission Is made that in 1887 or
1889 the Continental Oh company,
subsidiary of the Standard Oil com.
pany, contracted with the United
States Oh company and the Florence
Oh and Refining company to take
their entire products and that it con-
tinues to do 50 now that the contract
has expired, but the defendants de.
clare that this was not done to sup.
press competition.
The allegation in the governments
complaint that the Standard Oil COM
pany has secured monopoly Of the
oil trade in the Northwestern states
by inducing the railroads to refuse to
make through rates from st. Paul and
Duluth to Eastern points is denied.
The charge that the profits Of the
Standard OH company in excess of
dividends are enormous is declared to
be false.
In conclusion the defendants denied
that they have entered into any un-
lawful combination or confederacy