RISE OF THE STANDARD OIL COMPANY 201 



monopolistic power of getting higher prices. Perhaps the 

 most significant criticism which the independent refiners pass 

 upon the price which the Standard Oil company gets for its 

 oil is that the improved methods of utilizing by-products in 

 recent years have made by-products as remunerative as the 

 refined oil itself; and yet the margin of price between refined 

 oil and crude oil during this period has only slightly decreased. 

 The statement has frequently been made that the Standard 

 has reduced its prices in the territory of its competitors, and 

 maintained prices at more profitable rates as non-competitive 

 points. Such a practice, as an instance of ordinary business 

 competition, is not extraordinary. A similar charge could be 

 brought against most large businesses; and, as those who 

 bring the charge seldom take into account the varying cost 

 of transportation to markets of varying means of communi- 

 cation, small probative value can be attached to their bare 

 statement of difference in price. Of more serious nature are 

 the charges that the Standard Oil company suborns the 

 employees of its competitors to secure information as to 

 their shipments and customers, and that it resorts to unfair 

 tests and adulteration of its oils and to the copying of brands 

 with the design to deceive purchasers. On all these points 

 the evidence is at best vague and inconclusive. The officials 

 of the Standard Oil company testify that it is their practice 

 to ask their salesmen to keep their eyes open, and to inform 

 the company as to those from whom different dealers are 

 buying; but they flatly deny the charge of suborning the em- 

 ployees of their rivals, and very conclusively explain away 

 the charge of fraud in the copying of brands and in the tests 

 and adulteration of their products. The energy of the Stand- 

 ard Oil company, in developing new departments of the in- 

 dustry, and its enterprise in undertaking the production of all 

 the chemicals and materials incidental to the process of refin- 

 ing, has been recognized, even by independent refiners, as 

 truly great, and quite beyond what smaller competitors could 

 have attempted. The leading by-products are gasoline, 

 naphtha, paraffin, lubricating oils, and vaseline products. 

 In addition to these, fully 200 other by-products are extracted 

 and used for medical purposes and for aniline dyes. To 



