New-York tribune., 1907-10-05
OIL WAR EVEN ABROAD
SMALL FRY FROZEN OUT.
Witness Tells of ErceSSiUe Rates
to South africa.

FurIheT commentaries on tne standard Oil Com
panys intolerance of any competition in the fields
II considers peculiarly its own were made yester-
day in the governments suit to have the corpora
ton dissolved a monopoly. Two witnesses told
Of their painful experiences in endeavoring to COM
pete successfully with the trust.
Through the testimony of one of them Philip
Harrison, manager OF the sales department of the
New York Lubricating OIL Company, Mr.. kellogg
succeeded In bringing out of the interest
ing bits of information TO the lengths to which
the Standard would go TO stife a show of COM
petition from comparatively insignificant rival
On Thursday Mr.. Kellogg succeeded in getting
into the record the story of how the Standard had
got into its control more than 95 per cent of the
sales Of lubricating oil to the railroads of the
United States. Canada and Mexico
The method by which the so-called conference
of steamship lines plying between New York and
South African ports used to further the Stand
ards efforts TO force the New York Lubrcating Oil
Company out of the South African market was
disclosed during Mr. Harrison's testimony yester-
day afternoon when. despite repeated objections of
the company's attorneys, Mr.. kellogg succeeded in
getting into the record evidence OF discrimination
IN freight rates granted TO Standard Oil and its
subsidiaries by the conference"
The conference includes the Hansa Line, the
Union Clan Line the Prince Line. the Houston
Line and the American and African Steamship
Line the group which sued in the United
States Circuit Court in this city last winter an
alleged trust which compelled shippers TO South
African ports 10 agree 10 ship by no other lines.
The exposition of the respect and awe in which
the Standard is held by this combination of lines
came when Mr.. Harrison told of his experience in
trying receive fair treatment from the agents of
one Of its members. the Union Clan Line. Mr..
Kellogg had a member of the firm of agents Bar
Der & Co. Limited first identify a copy OF a con-
tract made between the five lines on the one hand
and the Standard of New York. the Colonial OIL
Company, the Vacuum OIL Company. Swan & Finch
and Bourne. Scrymser & Co, all controlled by the
Standard Of New Jersey. for the transportation or
oil between New York and South African ports.
The contract was made on February TO- 1906. and
does not expire until March. 1905. Under this ar
rangement the Standard has its oil carried to Della
goa Bav for approximately 16s. Sd, or 81 So
ton Of forty cubic feet. Up to September, 1900 the
New York Lubricating Oil Company was charged
for like accommodations 21s. Sd. Then the rates
were sunmarily raised by Barber & Co, Limited,
IN as Cd and two months later there another
advance TO 42s. Cd. making a charge OF about
SO 80 to the New York Lubricating Oil Company
where the trust companies have to pay no more
than $3.50.
Mr. Harrison told how the agents of his company
in South Africa had been forced to buy tho
oresner grades of iubricating oil and greases from
the Standards representative in South Africa to
keep its own business Finding that the business
was being kept at no profit, however In an attempt
10 get fair treatment, Mr.. Harrison made Wig
orous protest to barber & Co. last June, after
learning that the conference" steamships were
quoting the Standard concerns freight rates less
than half Of those forced the New YORK
Iubricating Oil Company Later he wrote long
letter embodying his ideas on the treatment that
had been accorded his company and asking for
consideration in the matter. The only considera-
ton he ever got perfunctory reply TO his
letter last June saying that the matter would
be considered
After Wesley H. Tilford, treasurer Of the Stand
ard OIL Company of New Jersey. had beer in
structed at the morning session to find out who
controlled the 'crosstown pipe line under
Central Park, William Walker Tarbell contributed
some information the history of the oil war In
Pennsylvania. Mr.. Tarben is brother OF Miss
Ida NJ TarbeII, and. judging from his testimony or
yesterday may have been helpful in supplying TO
his sister information valuable in the compilation
Of her History Of the Standard OIL Company
He asked 10 correct the impression taken from the
testimony of Mr.. Tilford, when examined during
the first week Of the hearing, that the Standard
now controls the Pure Oil Company. formed in
1895 OF which Mr.. Tarbel is treasurer. The Stand
ard does own 80 Per cent Of the United States Pipe
Line Company, which is controlled by the Pure OIL
Company with holding Of 50 per cent of the stock
The former company has never been able 10 get a
pipe lire through New Jersey to the New York sea-
board owing 10 the opposition Of the Pennsylvania
and Lackawanna railroads.
When the Producers Protective Association was
formed IN 1s9z, said Mr. Tarbell it had member
ship OF than two thousand. Its object was
70 oppose the Standards aggressions, and for that
the organization was kept secret, and no
person affiliated with Standard interests ad-
mitted 10 membership The association started in
with a capital of 10000. and built tank and
pipe lines. The former II never used, as the Penn
sylvania and Baltimore & Ohio railroads quoted
rates that prohibitive. The oil men inter-
ested in the Producers Protective Association also
organized the United States Pipe Line Company.
Then followed a war with the Standard in which
prices Of oil were cut both In this country and
Europe. In Europe, Mr.. Tarbell testified, refined
OIL at time sold for less than crude OIL Tho
war ended by the extinction of three companies
the International Oil Company. Ltd. the Union
Refining Company and the s. Y. Ramage Company.