The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-01-07
STANDARD OIL IN
FAR WEST PROBED
Special Federal Agents Will Con-
duct an Inquiry in CAL
ifornia.

San Francisco, Jan. 7.-Adv1ces from
Washington contain the information
of commerce and labor will arrive very
shortly to investigate conditions exist
ing in the oil industry Of California. AS
this investigation is part Of that ordered
some weeks ago by President Roosevelt,
and IS aimed at the aegressions, OF the
terest is manifest turnout the state as
to the outcome Of the work Of the COM
mission.
The investigation will commence in
the oilfelds and include all branches
Of the oil business in California, to-
gether with the pipe lines and refining
Works that have 0 been sstab9he5 by
Richmond. A few years ago there were
nothing but vacant fields along the
shores of San Pablo bay, where the
company's works now stand. Today an
actual city has grown up around the
refneries and the buildings represent
the expenditure Of millions, with the
work by no means completed.
Little for Producers.
According to the producers and inde-
| pendent middlemen Of the state, the
| condition of affairs which predicated
the investigation and made the insti
| tuition Of commission necessary in the
| eyes of the chief executive is the sig
niticant fact that prices for oil have
been gradually forced down by the
Standard Oil company until there is
Fuel oil in California, Of the best
quality, is now selling for IS and 20
cents a barrel. Producers claim that
there is single buyer in the state, and
that the Standard Oil, which sets its
own price, which the seller can take or
leave as he pleases:: The contention is
pay a reasonable price for a commodity
whose usefulness has been clearly
proved, but that conditions have been
brought about which force the producer
to sell to Rockefeller's trust and its
agents or let the wells lie idle.
The California oil fields are the finest
those in .Baku, Russia. Nature has been
bountiful in the supply, and California
fields have not been developed to one.
tenth Of their capacity.
Monopoly in West.
The demand, however, has not been
left to the natural laws which would
regulate it, for as soon as oil was dis.
covered in California the Standard Oil
company Immediately proceeded to lay
it's plans and it's agents went to work al
most at once to corner the market ano
monopolistic conditions wi Which CHI have have
forced all competitors out Of business
in the east. Millions have been ex
pended by Rockefeller's trust in pipe
lines, storage plants, pumping. station:
the Standard OH company does not owl
one acre on which there are actual we'll:
in operation. Standard Oil does MOI
calculate to become a producer except
when forced to it, for the trust is salts
fed to be the one great middleman
debating the price at which oil shall b,
sold and the amount of it which shall b.
bought.
Railroads in Deal.
consumers Of fuel oils are closely asso
ciated with Standard Oil, and Will
: the Standard company is not ostensibl,
;. buying a barrel Of fuel oil, it's agent
the Associated Oil company, is the sol
and only purchaser in California today
The progress Of the Standard Oil com
pan,y toward the ideal monopolistic con
a paign has been conducted with the ut
! most quiet and the vast expenditure
! already made have been all very, unos
t tentatious and consummated with a
Q little notoriety as possible. AS resul
h Of these operations the price Of oil i
r now at point below which it canno
J. be forced if there is to be any produt
Q tion whatever.
n When oil was first projected for
d fuel the Santa Fe railroad purchased
h at $1.30 barrel and conducted e.
periments which demonstrated that 8
l. that price the use Of oil brought the1
Is a saving Of 80 per cent over all the
e lines. The first railroad contracts fc
I, fuel oil stood at 81 a barrel, but tn
le price is now IS cents, forced down b
4 the buyer, which is the Standard o
a company. The average price of co;
Is is 81 ton, tho the Southern Pacif
1t company, which owns it's own mine
al gets it for something over S.. The pr
Queer is now forced to deliver to IL
G. Standard Oil company the same nur
st Der Of units Of heat there are in a tt
N Of coal for 70 cents. The difference
m the profit, which it must be admitte
le John D. Rockefeller. j..
* Trouble for Investigators.
:, Tt Is anticipated that the commissio
II II which arrives on the coast in week
at so, will have a great deal of difficulty
~ ~ conducting their investigation. Rock
i'll Teller claims the Standard Oil compa1
the officials of the trust are always al
n to offer plausible excuses for each
xt their acts. There has been a pretty fir
I'D market up to the present time, t
prices have been constantly slidi,
en- back, and the Standard Oil people W
c) offer the fact in proof of their asst
lions. The Independents maintain til
I'd the Standard Oil company will not he
I'd tate to employ all of their vast J
sources, to fight every move Of the, !
ali substantial inducements will be offer
Lch which would enable every member
the, committee to return to Washingt
a wealthy man.
lo. ---------
Is, YELLOW FEVER AT HAVANA.
in EJovan. Tan Fitness reported amc