The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1906-05-04

F3ezitIJnEluIeQfIIOkl1& Z
dat.fIs s. beg to invite your attention
TO the following summary Of It's more
prominent features:
the manufacture OF refined oil.
commonly known as kerosene, is
about &c. 100000 barrels. annual Of
which the Standard on Company d.
rectIy and indirectly controls about
s23.o0o, 900. It also controls approx
mately the same proportion of the:
ssother products of petroleum.
The refners owned or controlled
BY the STANDARD ON Company are 10
Gated near New York, Philadelphia,
Baltimore, Chicago. Kansas City. IN
western New York and Pennsylvania.
I IN West Virginia, Ohio. Kansas. Colo
rado. California and Texas Its 1ars-
lest refneries are located at the great
ceuters of distribution. which are con-
5nected by pipe lines with the crude
\ OH fields. The refined products are
carried by rail and water. The in
dependent refneries-that is, those
not owned or controlled by the Stand
ard on Company-are located, with
avery few exceptions. at or near the
crude oil fields. This difference OF 10
cation, as will be seen later. is OF i'm
portance-
The STANDARD claims that the loca-
ftion OF its refneries 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
managers While in measure that is
true, it must not be forgotten that
these advantages were in part obtain
ed by means of unfair competitive
methods after years Of fierce indus
trial strife.
4 The development of the pipe line
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 N the.
greater portion OF the country. and
which so limit competition as TO prac-
stically prevent the extension OF the
business of any independent to point
which even remotely endangers the,
supremacy Of the Standard.
An immediate result of this elini-
tation OF the competitive area is.
sssss:aewn= by the prices of ordinary iliuIn-
i:,ating OIL throughout the country.
After deductnS the freight rate the
price of such oil is usually from
cents to 5 cents a gallon higher in
the noncompetitive than in the COM
petitfve fields. A reasonable profit
upon refined oil is about one-half 4
Scent per gallon. 1t is clear that ex-
orbitant profits are obtained in the
Snoncompetitive fields. This monopol:s-
tic control extends from the we'll OF
the producer to the door step OF the
5sconsumer-
The facts regarding freight rates
have been, obtained by the examina-
Stion of thousands of entries upon rail
road records With but a single I'M
portant exception. railroad companies
have. upon application of the Bureau
of Corporations. given access TO rec
ords OF both State and interstate bust
ness The New York Central Com
pany refused for itself and its af-
hliated lines to give access to records
of State rates. At the beginning OF
this investigation the officials of the
Standard on Company state that that
company had not obtained in recent
years and was not now obtaining any
rebate or other transportation dis
elimination as against its competitors
They invited the most careful investi-
cation of the subject
Upon the request of its attorney.
all the essential facts discovered by
this Bureau were presented to the
company at the close of the investi-
cation, and an exhaustive statement re-
Iating thereto was made by its chief
{ traffic officer. There was no denial
: of the facts found, but explanations OF
! particular situations were .offered,and
: it was urged that the facts did not
show any violation by the Standard
of the letter or spirit Of the interstate
commerce law. A most careful re-
view Of the facts and the explanations
leads to the following conclusion:
The STANDARD Oil Company has ha-