New-York tribune., 1906-07-13
NO MORE OIL MONOPOLY
4 FAIR FIELD OPENED.
Po5Cer of Standard Oil Company
Broken by Recent Legislation.
rFrom The Tribune Bureau. ]


Washington, July 12.-"The absolute domina-
ton by the Standard OIL Company of the busi-
ness in petroleum products has been broken 80
declared Charles d. Chamberlain, head OF the
National Petroleum Association, speaking to-
day Of the Lodge amendment to the Railway bill
and the administration prosecution OF trusts
Mr.. Chamberlain came to Washington to testify
before the Interstate Commerce Commission.
Il do not mean,' he hastened to add, that
the time is near when the Standard will cease
to control a great share Of the business, but a
fair field and equal opportunity are now in sight
Tor the independents and the developments Of
the near future will be startling"
Mr. Chamberlain maintains that even the vast
financial power Of the Standard will prove in
sufficient to stem the tide Of capital which will
now rush into the independent producing pipe
line and refining companies. He predicts a de-
crease in the price Of petroleum products aver
aging 20 per cent as result of the abolition of
the Standards complete monopoly. and thinks
that this will make itself felt quickly in terri
tories. like New England. which have been en-
tirely at the mercy of the Standard It was in
that territory, where there was no competition
according TO Mr.. Chamberlain, that the Standard
mace lts immense profits, a large portion of
which 1t devoted to crushing it's competitors In
other regions. The extent to which Senator
Lodge has benefited not only New England but
the entire country by his able though quietly
conducted campaign against the Standard is. in
the estimation of Mr.. Chamberlain incaiculable
AS an instance Of the manner in which the re-
cent legislation will affect the Standard Mr.
Chamberlain cited the case of a company in
Cleveland.
One company in Cleveland" said he "started
twenty years ago with q capital of $4,000 1t
mas fought the Standard all the way and recentlv
1t increased its capital to S5000O1O and the
additional amount was Oversubscribed almost as
soon as the books were opened. That is the ex-
perience everywhere. The oil business will have
an enormous development. and the Independents
will get share of it from this time forward.
The independents are getting an immense
access of business from two sources. First. be-
cause of the cessation Of the aggressive and pi-
ratical methods of the Standard in lighting COM
petitors It is Withdrawing from many fields the
subordinate companies that used to sail under
the colOrs of independents and do the price cut
ting for the Standard That sort of thing has
become dangerous. There Is disposition to
expose and punish conspiracies OF that sort
Then the public is strongly In sympathy with
us. and IL helps immensely.
The railroad law and the powerful move
ment TO enforce the antitrust laws are doing us
immense good. For the first time we are get
ting an equal chance, as illustrated in the re-
storing Of prorating rates into New England
For many years the roads would not prOrafe on
oil going there; no independent could send oil
to New England without paying the sum OF the
local rates to all roads handling it, The Standard
piped its oil to seaboard at Bayonne NJ n
thence shipped 1t in tank vessels to New Haven
and distributed 1t at local rates throughout New
England. Independents were as ehectualIy shut
out as IL there had been a Chinese wall around
the territory. But now the roads have nut in
joint rates. and can get in, and we are al
ready doing So It means a saving Of from $50 |
to S120 on every car of oil.
THE Standard has the advantage vet OF it's |
pipe line system, which represents the cheapest !
method Of handling OIL known, but making these |
lines common carriers will help u.s. although It |
presents to the Interstate Commerce Commission /
the most difficult problem 10 has ever had TO !
solve. Then the Standards system Of man |
agement is expensive The spy system is per- |
feet. espionage reaches everywhere: every COM
petitOr. every railroad. every empOye is watched |
and reported on. The company's legal expenses |
are immense; its corruption fund is huge. These |
expenses largely Offset its physical advantages.
Finally, the independents will have their own
pipe lines and further equaliZe matters"
"One thing still needed Mr.. Chamberlain con-
tinued, els federal anti-discrimination law |
recognize IL as an extreme Of liberalization, but
we ought 20 have II. Kansas has such a law
has made it possible to develop ten independent
refneries in place OF one struggling one Iowa
passed the same law and Governor Cummins
signed 10 in May. 1t provides severe penalties
for making cut prices for the mere purpose Of
driving out competition. as the Standard has al
ways DONE
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