New-York tribune., 1907-09-24
RULED TIDEWATER co.
HOW STANDARD WORKED.
Oil Concerns Officials Sag They
. Had to Sign Trust Contract.

year was disclosed yesterday in the hearing
before Special Examiner Ferriss-
The Standard has never been able TO obtain
a stock control in the Tidewater Oil Company.
but despite that the latter corporation. it is de-
clared. gets only much business the
Standard thinks fit for rival have
There was a time when the Tidewater company
broke away from the arrangement by which ic
was allowed to have liz per cent OF the oil
business. but the company found it disadvan-
tageous to its interests and signed a ten
years contract in 1898. and has found itself
compelled TO renew II for another ten years.
although the Standard dictates the terms of
distribution of the oil business
Under this contract the Tidewater company
| exports 95 per cent of the yearly product or
it's refinery OF this amount % per cent Is sold
direct to the Standard. the Tidewater company
being compelled TO keep out OF the European
| field Most of the remaining D per cent Of its
| exported oil goes to the Argentine Republic
| the rest being sold IN other countries of South
| America in the West Indies and South Africa-
| for which trade the Standard does not seem TOT
! be particularly keen
The per cent of the Tidewater's producri
| which fs not exported the company can sel
| IN any market 1t can find There is a provision
| in the contract. however. that the oil for do
| mestic consumptfon must he sold in cases, bus
at that the Standard markets % per cent Of thiA
| product.
| r,reI,r,tnarv 70 the story OF the Standards
| grin on an independent company. when Vas
| told yesterday by it's vice-president and nan-
| ager Robert d Benson. disclosure made
! of an attempt the part OF certain stockhoid-
| ers Of the Tidewater who were friendly 10
/ Standard OF TO get control Of the company.
| They afterward disposed of their stock holdings
i ss4 share-to a representative OF the Stands
/ ard Oil, and these wheld IN It's Interest,"
| by H. c. Foger. ir.
| c. B MORRISON CONDUCTS HEARING
! Charles B. Morrison. OF Chicago, who was
\ one of the governments attorneys in its suic
/ for rebating against the Standard OIL Conn
/ pany Of Indiana took the place Of his COLI
/ league, Frank B. Kellogg. IN the examinations
/ of the Tidewater officials in endeavortng TO
| show how keenly that company had been al
/ fected by the Standards policy.
! Mr. Morrison made rapid progress IN ssettins
/ the information he was after. He was greatly
/ aided In this by the attitude OF his Witnesses
/ Neither Mr.. Benson nor Benjamin Franklin
Warren showed any disposition to hedge on
/ his statements or 20 have attack OF for
| getfulness when Mr.. Morrison was trying 10
| exact the testimony he needed to confirm the
| allegations made in the governments bill OF
| complaint about the Standards arrangements
| with the Tidewater company in It's errorts %
| get control of the export business
| Moreover the two Tfdewater officials were
! armed with all the books and records that the
| lawyer needed in his inquiry. so that II was
| possible TO place the records Connected
| story of Tidewaters relation with Standard
| Oil.
| Messrs. A1ilburn and RoseuthaI sat grimly by.
! the former making many objections to the ad-
mission Of the testimony. which were duly
| noted on the record. but which did not preyenr
| Mr. Morrison from going on in his determines
| ton TO exact the story from his witnesses
| Mr.. Warren, who Is a civil engineer. told or
| the difficulties he encountered IN the survey
and construction OF the pipe line of the Tide
| water Pipe Company. which was organized IN
| Pennsylvania in 1878. 1t now has pipe lines
| running from a point near Bradford. PENN TO
Constable Hook " J., thoush Ihe Aile was ~
| completed till 1886
--bs coropanv exercised great secrecy in mak-s
| inc the survey for the line. owing to the oppo-
| sition OF the railroads and the Standard on
COMPANY Interests opposed 10 the new COM
| pany learned of its projects. however and Wehs
| about preventing its achieving them LanN
along the line was bought up and everything
nossible done to prevent the company getting,
its line
In one case near wiliansport. Penn, thss
| mines of the company were pulled out by agents
of the Northern Central Railroad. oranen OF
the Pennsylvania and at another point shot-
guns were used to prevent the construction o.
the line There was a good deal Of opposisionI
manifested at Harrisburg, but tne company
finally succeeded In getting Its line through 40
the sea board to it's refinery
THE RI7uP PARLIAMENT.
Than with the assistance Of Mr. Morrfsona
questioning Mr.. Warren told how ne ano a
Mr. Allen had been instructed TO guard the o.
foes of the company, which were N 1lIusVlIes
Penn. for ten days in January looS' foiIoNins
. meeting of minority stockholders. This meet
ing which Mr. Benson. who is secretary ana
manager Of the Tidewater OIL Company re-
ferred TO as the 'runp parliament was hastHs7f
cauad on January IL OF the nine stockholders
$50, seven we're favorable to Standard Oh
and proceeded to elect'a new management
- -, dov another meeting Of the conpany'S
managers was called IN Philadelphia the ac'ioni
:, ,ra ,,tnoritv stockholders on the previous day
rescinded. and the minutes Oh '"e s
dered sealed by the board
Tho hoard consisted Of B. D. Benson, father
Of Yesterdays witness and first president of tho
company; James r. keene and F. ID. Gowan
Io,er an attempt was made to legalize the
,,oat,ne hut the Judge Of the Court of Common
pleas in. crawford County Penn, sustained the
action of the board of managers. and in his de-
cis;on declared the whole proceedings of the
truuned-up meeting "farcical," their character
|r.rduIant and their result void The records
urara again sealed up and remained untouched
until entered on the records of yesterdays
hearing
with tho failure of that attempt 10 get con-
troll the Standard has been in a minority in
The stock representation of the Tidewater
panes
told hou he