Q. Yes, but is there not a regular importation, and an increasing importation, of Russian oil ? A. No, it is not an increasing importation ; it is not, certainly. Of course the Anglo-American Company are getting the whole business practically (Report and Evidence, 1897, Q. 4,834).
This is how an " independent " oil merchant talked of the colossal power of the Standard Oil Trust at that date, and their influence extended even to the smallest transactions. When a great proportion of oil was still im ported in barrels, at least one London firm did a very good business buying up the empty oil barrels from the hawkers and small dealers, who used to collect them at the consumer's premises. The barrels were well made, and the Standard gladly bought the empties to use again. But it found somebody else was making a living. This would never do. At once the Standard began to offer small induce ments to the hawkers, and the barrels went to them direct, so that the small factor's busi ness was killed.
Very interesting evidence was given by Mr. W. T. Rigby, Secretary of the Liverpool Oil Dealers' Association, who was called in support of the Standard's opposition to the raising of the flash-point. He said the members of his association objected to the Anglo-American Company supplying so small a quantity as five gallons to small shops which had formerly been supplied by the small wholesaler. He went on :— In the first instance, when the Anglo-American put their tanks on the ground they gave us their word that no less a quantity than twenty gallons would be delivered, but when they found that the retail dealers of Liverpool would not embrace the new system of tank-wagon delivery, but pre ferred to take it in the old style of barrels, they, in the words of their Liverpool manager, were forced to administer a stab in our backs—this is, go really behind us and secure that trade which legitimately belonged to the Liverpool chandler doing a small wholesale business, and that is why they [his associa tion] are objecting to the delivery of anything less than ten gallons of oil (Report and Evidence, 1897, Q. 6,052).
But some of the wholesalers, especially where in the provinces they had built up a good business which it would be difficult for the Standard to capture, were allowed to remain as " tied houses " in the trade. Some evidence was with difficulty extracted by the Lord Advocate and Mr. M‘Killop, M.P., at the same committee from Mr. Geo. Base, a large " inde pendent " oil dealer of Norwich, who had come up to give evidence in support of the Standard's views against raising the flash-point :— Mr. M`Sillop, M.P.: Have you any freedom to use any class of oil you like 2—We prefer American oil. In fact, we have dealt in nothing else.
Have you a general freedom to use Russian oil, for example, if you choose ?—We don't like Russian oil.
Are you bound to any particular dealer ? Are you bound to use American oil 2— Yes, that is so. That is largely because of choice.
You are under contract 2—Yes.
You are not allowed to sell any other 2—Yes, that is so.
Mr. Ure, M.P.: What do you mean by contract 2-1 mean I have an arrangement at present in distributing American oil.
Do you mean that you have a binding agreement with the Standard Oil Company to sell nothing but their oil for a specified period 2—No, not for a specified period.
For an indefinite period 2—There is no period specified whatever.
Do you mean that you have a signed agreement to this effect, " signed, sealed, and delivered " 2—If it is a binding agreement, it does not matter whether it is signed or not.
Is that a common type of agreement with the American Company and its customers 2--I don't know.
Does it specify any price 2—No.
Does it preclude you from dealing in the oil of any other company yes, it does to a certain extent.
What happens supposing you have oil from any other com pany ?—That I can hardly say, but I am perfectly at liberty to determine the agreement at any time I choose.
Do you mean that breach of the agreement would not entail a claim for damages 2—No.
Then what " consideration" do you get for entering into such agreement 2—The consideration is the larger volume of busi ness.
But you can without an agreement deal in it 2—Yes.