Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-03-04
THE PRODUCERS REMEDY.

Both for the sake OF the Legislature and
of the public it was to have been wished
that the Burdick bill would receive a favor
able. or at the very least, full hearing in
open session. For the Legislature 1t was
important to show that it is not the servant
of the Standard Oil Company. For the
public it was desirable to have the principle
asserted that the creation of a practical
monopoly, by the use of franchises and priv
ileges granted by the State, requires the in
tervention of legislation to prevent the evils
of discrimination and excessive charges.
But that measure being defeated, the
petroleum interests should understand that
neither are the remedies exhausted, nor is
the most efficient aud thorough cure for the
present evils placed beyond their reach.
The policy which was urged in these columns
before the Burdlck bill was framed is as
much within the reach of the producers as
ever. 1t always will be within their reach,
unless their supineness permits the absorp-
ton of the producing territory to so on un-
til there is not enough of producing inter-
est left to be worth saving. The relief will
not perhaps be as immediate as that from a
legislative reduction of rates; but when it is
reached it will be much more complete and
lasting.
This remedy of course lies in the en-
couragement of competition in the purchase
and transportation of their production.
Nothing can be more indisputable than that
the sole foundation of the power Of the
Standard over the producers lies in its con-
troll of all ths means of taking petroleum.
from the producing districts to the markets
of the world. When the producers find the
means of either taking their products into
the marts of commerce, or of inducing COM
petitors of the Standard to do it for them,
under conditions which will be lasting, the
grasp of the great corporation on the oil in
dustry will be loosened. No better measure
of the value of competition to the producers
is needed than the fact that wherever a
competing pipe line and competing re-
fneries have reached the wells, there pre-
MUM on crude oil OF from to 20 cents per
barrel has existed. This simply testifies
that with the competition which the pro-
ducers should aim to call into exist
ence the producers oil is worth 10 to 25
per cent more than it is without.
While it may be difficult to call competing
lines into existence, it is entirely within
the reach of united and intelligent effort.
Outside capital cannot be expected to enter
into competitive fight with the Standard
without any encouragement from the pro-
ducers. But If the producers hold out a
guarante of profitable business, capital can
be obtained for pipe lines In any city of the
country. 1t is not necessary that such an
organization shall embrace all the pro-
ducers. If the leading ones of a district like
Wildwood should obtain a competing pipe
line by guaranteeing it enough business to
make it profitable, there is no gu .stion that
the prosperity of that district would cause
others to follow its example.
All that is needed is for the producers to
break down the barrier which the Standard
has built up between them and the dis
tributing markets. That can be done by
bringing their production pipes to any
point where competitive routes are open for
the transportation of the refined product.
This requirement is met anywhere along the
banks OF the rivers, where water route is
open for two-thirds of the year Tor the trans
portation of export oil at a cheapness rival
ing those of the seaboard pipe lines, and
where railroad and water routes will COM
pete with each other for distributing refined
oil to the domestic trade. Whenever pipe
lines reach any such distributing point indie
pendent refneries will spring up as surely
as any trade or industry will appear wher-
ever there is demand for it.
The producers still have their remedy
within reach. Since the Standard will not
take their products to the consumers with
out excessive charges, let them take steps to
do that work for themselves.