The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-05-05

ion as to amount to thwarting the pur-
pose of the law, although the forms of
the law may be complied with.
1t is unfortunately not true, he says,
that the Standard Oil company is the
only corporation which has benefited
and is benefiting in wholly improper
fashion by an elaborate series of rate
determinations. The Sugar trust, he
adds, according to the results of the
investigation now in progress, rarely,
II ever, pays the lawful rate for
transportation. He declares that in the
effort to prevent the railroads from
uniting for improper purposes; I'VE
have very unwisely prohibited them
from uniting for proper purposes; that
is, for purposes of protecting them
selves and the general public as against
the power of the great corporations"
He favors, as an element of cOmpe-
tition, putting alcohol used in the arts
on the free list and of keeping the fee
to oil and coal lands of the Indian
Territory tribes or on the public do
main in the government, the lands to
be leased only on such terms and for
such periods as will enable the govern
ment to entirely control them
GarfieId's Report.
In summarizing his report Commits
sioner Garfield speaks of his personal
visit to the oil fields and of the great
mass of data obtained by him either
personally or through agents of the
bureau of corporations. The prelimi-
nary study of this was transportation,
which enters so largely into the cost
of the finished product and hence
most important factor in competition.
Taking up the subject of the output
of refined oil, Mr.. Garfield finds that
il amounts to about 81, 100000 barrels
annually, of which the Standard Oil
company directly and indirectly con-
trolls about %, 000, 900 and approximately
the same proportion of the other fin
ished products of petroleum. COntinu-
ing, the report says:
The Standard Oil claims that the 10
cation of its refinerieS and the use OF
pipe lines are natural advantages to
which it is justly entitled by reason of
the energy and foresight of it's mana
gers. While in a measure that is true,
it must not be forgotten that these adj
vantages were in part obtained by
means of unfair competitive methods
after years of fierce industrial strife.
Result of Special Agreement.
.eThe development of the pipe line
system by the Standard Oil company
was the result of special agreements
with railroad companies. Furthermore,
those sO-caIIed natural advantages have
been and are being greatly increased
by determinations in freight rates,
and state. which give the Standard mo-
nOpOlstic control in the greater portion
of the country. and which so limit
competition as to practically prevent
the extension of the business of any in
dependent to a point which even re-
moteIy endangeTs the supremacy of the
Standard.
"An immediate result of this delin-
cation of the competitive area is
shown by the prices of ordinary illum-
mating oil throughout the country. At
ter deducting the freight rate, the price
of such oil is usually from 2 cents to
cents a gallon higher in the nOn-cOm-
petitiVe than in the competitive fields
A reasonable profit upon refined oil
Is abcu a half a cent a gallon. 1t is
clear that exhorbitant profits are OBJ
tanned in the non-competitive fields.
This monopolistic control extends from
the we'll of the producer &c the doorstep
of the consumer"