The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1907-07-16
DENIED BY OIL TRUST
Octopus Replies to Allegations in
Government Suit.
DID NOT STIFLE COMPETITION
Asserts That Unlawful Deals Charged
Against the Corporation Were Le-
gitimate and Not for the Purpose Of
MonopoIizing the Trade.

st. Louis, July 16.-The answer of
the Standard Oil company and its
allied companies and officers to the
action brought against them here by
the federal department of justice was
filed 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 sti1e competition by COM
pelling competitors to sell out; that
it has crushed competition or that it
secured rebates which were denied to
its competitors.
Special denial is made that in 1876
and 1877 the Erie and New York Gen.
trail Railroad companies made prefer
ential rates to the Standard Oil COM
pary 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
$1.40 to $l.75 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
ard the railroads because of the rate
ious 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 Oil
company an exclusive rebate OF 10
per cent.
Its Intentions Legitimate.
The allagatinn that tho Cta-l~-a Oil
company forced sale OF the business
Of the Empire Transportation COM
pany is denied, but it is admitted that
in order to extend it's own.
Denial is made that in 1872 or 1882
the Standard Oil company secured
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 Oil company, a
subsidiary of the Standard Oil COM
pany, contracted with the United
States Oil company and the Florence
Oil and Refining company to take
their entire products and that 1t con-
tinues to do SO 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 a 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 Oil 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.