Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-09-24
OIL PRICES MADE
BY SEEP AGENCY
This Purchases the Crude
Product. X
ACTING Fer THE STANDARD
Contradicts Company's Previous Posi-
tive Assertions.
"LAPORT" LARGELY UNDER TEST
Matter of the Sale Of the Manhattan
Concern, With Guarantee of Sup p.
ply From Purchaser.
Contradicts Company's Previous Posi-
tive Assertions.
"EAPORT' LARGELY UNDER TEST

Special Dispatch to The Star.
NEW YORK. September 24.-Robert d.
Benson, an officer Of the Tidewater OH
Company and the Tidewater Pipe Line
Company, who testified yesterday that the
Standard OIL Company OF New Jersey
owned 81 per cent OF the total stock of both
Tidewater companies, was the first witness
called to the stand by Frank B. Kellogg
when the hearing in the governments case
for the dissolution of the Standard OF New
Jersey was resumed In the Federal build
ing this morning. Mr.. Morrison conducted
the examination.
When did the National Pipe Line Conn
pany get its line through to the seaboardTa
was Mr. Morrson's first question of Mr..
Benson.
Some time after the Tidewater." was
the answer. 1t was in about 1883 Mr..
Benson thought. He was at the meeting
when the contract between the Tidewater
and the National was made
Was there a division Of business rati.
fed at that meeting in 1882"
The tidewater companies got IL and Q
fraction per cent Of the business" Mr..
Benson answered, and the Standard
the rest. The contract was to have run
fifteen years. but was abrogated later and
a new contract made"
The contract agreed that the tidewatee
companies, in purchasing from the Stand
ard, should pay the same price as the
Standard, including premiums paid by the
bigger company.
Isn't 1T a fact that a premium Is often
paid for Oil in certain fields, where one
company desires to get 1t away from an
other company with which 1t may be com-
peting?"
How Standard Sets Prices.
IT think that enters into the question"
The Standard Oil, the witness said, sets
ha ric nf he oil
agency, which purchases the crude oil for
the Standard. The prices are announced
through the newspapers. and all that COM
panieS like the Tidewater knew about 10
was when they read it in the newspapers.
Then the Standard fixes the price at
which you sell oils?'
They fixed the price at which they sell.
We can't sell for any more and we don't
The STANDARD has denied that it fixes the
price of oil for any but its own subsidiary
companies.
The larger companies-the Standard"
DO they consult with you as to the
prices on export and crude oil?''
No, SIR"
When Mr. Morrison had brought out tho
fact that John II. Cuthbert had been con-
nected with the Standard before he be-
came director in the Titusville Company,
he rested and Mr.. Rosenthal cross-exam-
ined the witness.
You say the Seep agency representing
the Standard oil in Pennsylvania, fixes the
price of crude oil. What do you mean by
that?"
Il mean that the Standard, being the
largest purchaser. has a price of its own,
and this is accepted by the smaller COM
panes.'
Then, the other companies could hE
their own prices if they chose to do so, but
on account of the Standard being the larg-
est purchaser, they accept its pr:ce7"
Export Poorer Oil.
That is SO. believe"
Mr.. Benson explained the difference be-
tween export oil and that for domestic sale.
The domestic oil is 15O test, and OF that
which is exported 80 per cent does not meet
that test.
When you say the Standard fixes tho
export price. do you mean that the Stand
ard offers you anything more than bid
for your oil?'
mo; we sell our Oil to the Standard IN
the form of a consignment"
DO you know who created the foreign
export market
THE Stardard, SO I've heard"
In reply to questions of Mr.. Rosenthal,
MT. Benson explained why II was that 96
per cent of the Tidewaters u toduct is sold
Fifty per cent he SSd o,ssr Is n9s
per cent is sold abroad because ii is more
profitable. The Standard had built up the
On redirect Mr. Morrison asked moro
about the price.
""seep. the standard OIL agent. sets the
get it for any less and don't want to get It
for any more"
The price set by Seep is the market
price. them" asked Mr.. Morrison:
Yes, that is the market price"
This ended the examination Of Mr., Ben
son, and Anthony N. Blady was called to
the stand to tell about the requirement OF
the Manhattan Oil Company, ~ ~
Negotiations were opened when Mr..
Johnson had called with letter Of intro
duction from Brown Brothers"
Was the sale ever carried out?'
Yes"
THE stock was sold at par?'
Il don't remember"
Mr.. Brady could not remember whether
the bonds of the company were purchased
1t that time or later.
DO your books show total sums paid
by the General Industrial Development
Syndicate for the Manhattan Oil Com
pany?"
rs it your recollection that the stock
brought par?'
Il think So"
Now, Mr. Brady, tell US all about your
negotiations for the sale of this stock
Standard Guarantees Protection.
1T is not long story. The stockholders
we're willing to sell. provided that they
could get a fair price for their stock. and
hat the Chicago Gas, Light and Coke Com
,any should surely be protected. At each
meeting of the gas company avs represent
I'd and 1t was insisted that suitable con-
.ract assuring the gas company with a
supply of crude oil should be obtained for q
ong term of years.
Was II obtained?'
Yes"
..From the Standard OIL Company"