The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-05-05
Requires Special Study.


Requires Special Study.
The control of the Standard Oil company
over the entire oil industry is so great
as to require a special study Of Its re-
lations to transportation companies.
I therefore first submit the accompany
ing report upon the subject of railway
transportation and freight rates. AS 1t
necessarily covers many details, beg to
invite your attention to the following
summary of its more prominent feat
ures.
monty known as kerosene, is about 26,-
000, coo barrels annually. of which the
Standard OIL company directly and indi-
rectly controls about 1900. 900. 1t also con-
trolls approximately the same proportion
OF the other. finished products of petrol
leum.
The refineries owned or controlled by
the Standard Oil company are located
near New York, Philadelphia, Baltimore,
Chicago, Kansas City, in western New
York and Pennsylvania. in West Virginia,
Ohio. Kansas. Colorado, California and
Texas. Its largest refineries are located at
the great centers of distribution, which
are connected by pipe lines with the
crude oil fields The refined products are
carried by rail and water. The independ
ent refineries-that is, those not owned
or controlled by the Standard Oil COM
pany-are located. with very few excep-
lions at or near the crude oil fields. The
difference of location. as will be seen
later, is of Importance.
The Standard claims that the location OF
its refineries and the use of pipe lines are
natural advantages to which it is Justly
entitled by reason of the energy and fore
sight of its managers. While in meas
ure that is true, 1t must not be forgot
ten that these advantages were in part
obtained by means of unfair competitive
methods after years OF fierce Industrial
strife.
The development Of the pipe line sys-
tenn nv the Standard Oil company was
the result of special agreements with
railroad companies. Furthermore, tnose
so-called natural advantages have been
and are being greatly increased by ols-
examinations in freight rates, both pup
lished and secret. interstate and state
which give the Standard monopohstic
control in the greater portion OF the eoun-
try. and which so limit competition as
to practically prevent the extension or
the business of any independent to
point which even remotely endangers the
supremacy of the Standard.
Immediate Results.
An Immediate result of this delimitation
of the competitive area is shown by the
prices OF ordinary Illuminating OH
tbrougboYt the country. After deducting
the freight rate the price OF such oil is
usually from cents to cents salioh
higher in the competitive than In the
com netitive fields. reasonable profit up
on refined oil is about one-half cent
per gallon. 1t is clear that exoroltant
nrotits are obtained in the non-competl-
five fields. This monopolistic control ex-
tends from the we'll of the producer to
the doorstep of the consumer.
The facts regarding freight rates nave
been obtained by the examination Vi
thousands of entries upon fallroad rec
ords With but single important excep-
ton. railroad companies nave upon APP
plication of the bureau OF corporations
given access to records OF poth state anu
Interstate business. The New YORK Cen
trail company refused Tor ltself ana its
affiliated lines to give access to records
of state rates. At the beginning OIL TINS
investigation the officials OF the STANDARD
Oil company stated that that company
bad NOT obtained In recent years and was