Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-05-05
COM. oARFIELo's REPORT.
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Continued from Page One.)
details, I beg to invite your attention
to the following summary Of Its more
prominent features.
1he manufacture Of refined Oil, COM
monty known as kerosene. Is about
100000 barrels annually, of whicn
the Standard OH Company directly and
indirectly controls about 100000. II
also controls approximately the same
PROMOTION, Of the other finished pro-
ducts Of petroleum
Tn rAfneries owned or controlled by
the standard OIL Company are located
rear Nv York. Philadelphia, Balti-
more chicago, Kansas City. in western
New York and Pennsylvania, in West
Virginia. Ohio. Kansas Colorado. Cali
fornia, and Texas. Its largest refin-
cries 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 independent re-
fneries-that Is. those not owned OIL
controlled by the Standard Oil Com.
pany-are located. with very few ex-
captions. at or near the crude Oil fields
THIS difference Of LOCATION, as will be
seen later. IL Of Importance.
The standard claims that the loca-
ton Of its refineries and the use OF
pipe lines ara natural advantages to
which it Is Justly entitled by reason
Of the energy and foresight of its man
ayers While In a; measure that IS
true, It must not be forgotten that
these advantages were in part obtain
ed by means or unfair competitive
methods after years Of fierce Industrial
strife. ~
The development Of the pipeline
system by the Standard OIL Company
was the result Of special agreements
with railroad companies Further-
more. those so-called natural adVan-
tages have been and are being greatly
increased by Determinations In freight
rates, both published and secret. In
terstate and State, which give the
Standard monopolistic control In the
greater portion Of the country, ana
which 30 limit competition as to prac-
tically prevent the extension OF the
business OF any independent 10
point which even remotely endangers
the supremacy OF the Standard.
An immediate result of this delimi-
tation of the competitive area is shown
by the prices of :, ordinary illuminate
Ing oil throughout the country
After deducting the freight rate the
price of such oil is usually from
cents to s cents a gallon high
or in the noncompetitive than In
The competitive fields. A reasonable
profit upon refined oil is about one
half a cent per gallon. 1t is clear that
exorbitant profits are obtained in the
noncompetitiveN fields. This monoplis-
tic control extends from the we'll of
the producer to the door step Of the
consumer. 90 -"'''-'
The facts regarding freight rates
have been obtained by the examination
Of thousands Of entries upon railroad
records. With but a single important
n>cap.ion. railroad companies have.
upon application Of the Bureau of Cor
potatio1,. Gi,.fp access to records of
iit,! sat. ami interstate business.
TIL. Erw. york Central Company re-
fuh-ti FOR itself Sand its affiliated lines
10 give access to records of State rates.
At the beginning of this investigation
the osflcials- of the Standard Oil Com
:pany stated that that company had not
obtained in recent years and was not
r5M obtaining any rebate or other
transportation discrimination as
against its competitors. They invited
nc most careful investigation of the
shbjsc,. 49,. g. ~ - .,.>-
sUonn the request of it's attorney, all
the essential facts discovered by this
Bureau were presented to the COM
pany at the close Of the investigation.
and an exhaustive statement relating
thereto was made by Its chief traffic
officer. There was no denial of the
Facts fouOd, but explanations of par
-tf3uIsr Situations We're offered and it
wan ura-1 that the facts did not show
any violation by the Standard of the
letter OF spirit Of the Interstate COM
,ncrce law. A most careful review Of
The facts and the explanations leads to
the following conclusion:
The Standard Oil Company has ha-
bitually received from the railroads.
and Is now receiving. secret rates and
Other unjust and illegal discrimina-
tions.
During 1904 the Standard saved about
through the secret rates discovered by
the Bureau. and OF course there may
be other. secret rates which the Bureau
has not discovered. This amount rep
resents the difference between the
open rates and the rates actually paid.
Many Of these determinations were
clearly in violation Of the Interstate
commerce law, and others, whether
technically illegal or not. had the same
effect upon competitors On some
State business secret rates were ap-
pled by means of rebates.
These determinations have been so
iong continued. SO secret. SO Ingenious
~ applied to new conditions of trade
and so large In amount as to make it
certain that they were due to con-
certed action by the Standard and the
railroads.
The Standard Oil Company is re-
ceiving unjust determinations in onen
rates. III UPON
The published rates from tho ,e,d,ra
Standard shipping points are re,at,va,.,
much lower than rates from tba shtn,
ping points of It's co.npetitors TN
advantage to the Standard over ;ts