The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-11-16
d MoNoPoLIzATioS.

aLhu hNihAcIHs
EsTRAIN AMI MoSoPoLIZATIoS.
1t is alleged that the Standard Oil Com
pany have monopolized the carrying bust
ness by pipe linesg that they are common
carriers, hui hat they have refused and
failed TO perform their duties az common
carriers Of oil; that they have charged ex-
cessive rates, and rates which were dis.
~criminatory in favor Of the Standard Oil
Company; that they have refused to furnish
equal facilities for independent shippers;
that they have refused to ira nspoTt oil
belonging TO others than the defendants
and their associated companies, and since
the month of August, 1908, have refused to
transport oil of others except in such large
quantities as to completely prevent indie
pendent producers and refiners of oil from
using their service; and that they have
forced sixteen independent ~refiners 10Y
doing business in P~ennsylvania and OHIO.
and procuring their crude oil through the
Standard Oil Company's pipe lines, TO sell
all of their export oil to the Standard Oil
Company, thereby eliminating their com.
petition. This contract was procured
through threats of the Standard Oil Com
pany TO reduce the amount of crude oil
which it would sell to the independent
refiners.
UNFAIR ~PRACTICEs.
The bill alleges that the Standard Oil
Company. through their various pipe line
companies, paid high prices or premiums
vi VII Ill lIIllllCu lcEIilOIltS dbJdNthN W
competing pipe lines. thereby taking away
the business OF such pipe lines; but, as soon
as the pipe lines were crushed out or pur-
chased by the Standard, withdrew the
premiums and lower the prices.
RATE Determinations.
1t is alleged that one of the principal
instrumentalities through which the de-
PENDANTS have m~onopolized the commerce.
In petroleum has been preferential rates,
and rates discriminatory against COM
p~etitors, both in published tariffs and by
secret and unpublished rates, and by re-
bates granted to the Standard Oil Company.
The bill goes into the details Of many Of these
rates and shows a systematic discrimination
substantially all over the United states.
40 that rates from STANDARD shipping points
are very much lower, for the same distance'
proportionally and per ton per mile, than
from shipping points Of independent COM
peting concerns. These differences in most
instances amount to more h a reasonable
profit upon the oil.
The petition gives many instances Of rail-
way favoritism in the South and Southwest,
and alleges that for more than ten years the
Pennsylvania Railroad Com pany established
and had in force a secret and unpublished rate
from Clean to Rochester, n. Y. Cboth being
refining and manufacturing points OF the
~Standard), of 50 cents per ton, while the
independents from S~truthers, Oil City,
Clarendon, Titusville and Warren paid
from $3.50 to s2.sI a tOn-more
than four times tho Standards
rate. The Standard rate from Clean
TO Buffalo was 10 cents per barrel,
while the rate from Bradford, Clarendon,
Oil City. housewife. Struthers, Titusville.
and Warren independent points, was 81
cents per barrel.
Ire New York Central road also made a
secret rate Of v cents per hundred pounds
from Rochester to Norwood, ". u, in con-
nection with the Rutland Railroad. to Yer
mont.
II is also alleged hat the New England
railroads, principally the New York, New
Haven and Hartford, the Boston and Maine.
the Rutland and the Central Vermont re-
fused to prorate- that is, to Join with
the railroads connecting with said rail
roads, from independent refining points
in western and northwestern Pcnnsyl-
vania aud Ohio. in making through rates
on petroleum products but charged their
full local rates, although it was customary
TO prorate IN other products.
That by refusing Ia Irorate, they dis
eliminated against the independent re-
timers on an average Of 8 or . cents per
hundred pounds.
That by reason Of these matters the
andar Oil Company has had q substantial
monopoly of all of the New England and tho
northern and eastern New York business.
Instances of rate discrimination in many
other States are given.
CONTROL OF RAILROADS.
II is alleged that discriminate has
been obtained through the ownership and
influence of the individual defendants,
and others acting in their interest. i'm the
various railroads OF the United States,
and by reason of the fact that they were
enabled to give such railroads large traffic
or TO take such traffic away from them in
the event the rates were not satisfactory,
A list Of Standard Oil Company men and
the railroads in which they are interested
is given.
MONOPOLY OF SALE OF OILS TO RAILROADS,
II is alleged that by reason Of the in
fluence Of the defendants over the railroads,
and the large tonnage which they are able
to control. the Standard Oil Company sells
substantially all of the lubricating oils to
the railroads of the United States, amounting
to exceeding Si,300,O go per annum: tina IL
charges some railroads very much higher
prices than others; that In nearly all cases
the prices charged TO railroads are excessive
and unreasonable. being from 80 to 100 per
cent. more than the prices at which other
manufacturer are willing and able to sell the
same, and that the railroads are willing 20
and do pay these excessive charges by
reason OF and as a condition Of securing
shipments of traffic in petroleum and its
products; and that the said excessive prices
have been substantially the payments Of
rebates to the Standard Oil Company upon
its shipments of such products.
uNFA IR METHODS OF COMPETITION
IL is alleged that the Standard has used
unfair methods Of competition, Among
others named in the bill are the following;
Where an independent has attempted TO
sell in any community, the STANDARD would
cut the price below the cost TO such indie
pendent, and in many instances below the
cost TO the Standard company, until the
com petitor was driven out, when the price
would he raised; and that all over the United
States, wherever no competition exists,
the Standard has charged very much higher
prices, in many Instance nearly twice as
much as in places where competition did
exist.
Another means OF unfair competition
used by the Standard Oil Company was to
obtain from railroads and railroad employees
reports 81 the shipments of competitors,
thus enabling the Standard Oil Company
to find out where the competitor was ship
ping or about 10 ship oil. whereupon the
Standard Oil Company would go into the
community and cut the price below that
OF the cOmT etitOr.
IL il alleged that by reason of its monopoly
the Standard Oil Company has made
enormous and unreasonable profits on the
actual value of its property; that the truss
tees valuation Of all the property and
stocks placed in their hands in 1882 was
SIS, T1O, 89S. "a. and that the additional
property purchased or acquired by the
issue OF trust certificates was sI3, BID, 100;
80. aL-A Az a A - Ill 49,. 49,