The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-01-28


toned by superior officials of the roads,
but 1t does appear that such informa-
ton is systematically obtained from
railroad employees. The testimony
if 1t does not now, devoted fund TO
the purpose of obtaining this Informal
ton. 1t has frequently happened, when
the supply of independent oil in a par
ticular territory was low and ship
ment was peculiarly necessary, that the
shipment has unaccountably gone
astray. Information also appears TO
have been given the Union Tank Line.
a creature of the Standard, concerning
the whereabouts of its cars, while such
information was not furnished to other
owners of tank cars and some discrimi-
nation in tank car mileage in favor of
the tank line is shown for one rail-
road"
1t is asserted that it is the practice
of the Standard, whenever a competl-
tor erects storage tank to which the
oil is transferred from the tank car, TO
reduce the price of oil in that locality
to such a point as to make the BUSH
ness Improbable to such competitor,
while prices were maintained in other
localities. There was much complaint
that the railroads allowed the Standard
to erect its tanks at convenient points
on the right of way and declined to ac-
cord this privilege to independent re-
finers. The commission says 1t is salts
fed that such discrimination has been
very generally practiced in the past
The report shows that ''at present
every considerable railroad in the
United States is buying of the Galena
Oil Company, one of the Standard COM
panieS, most of its lubricating and sig
nal oils, the prices paid for lubricat-
ing oil, which is of three grades, be-
ing substantially the same to the vari-
Gus railroads. The contracts generally
contain a guaranty to the road that the
cost of fabrication shall not exceed
certain sum per mile or engine mile,
and provide for oil inspectors appoint
ed by the oil company to supervise the
use of the oil. The CSalena company
is rarely called upon to pay anything
under the guaranty. and the prices
obtained by the oil company are eX-
travagantly high. Oils of the same
grade could be bought in the open
market for about one-half the Galena
company's prices
The report severely arraigns the
Standards methods of competition,
saying:
The Standard has repeatedly, after
becoming the owner of a competing
continued to operate it I'M
der the old name. carrying the idea to
the public that the company was still
independent, and competing with the
Standard. 1t has used such purchased
or independently organized companies
to kill off competitors by such COM
panies reducing prices. The operation
of such fake Independent concerns has
been one of its most effective means
n.
ard has habitually reduced the price
against its competitor in a particular
locality. while maintaining It's prices a t
other places. When competition was
destroyed it advanced or restored
former prices. The Standard has sold
prices from the same barrel. It has
paid employees of independent oil
companies for Information as to the
business of these competitors and has
"a n or7I0 To- st.
to secure the addition of it's oil in
preference to that of its competitors.
1t has followed every barrel of indie
pendent oil to destination. Its agents
are INSTRUCTED to secure customers at
any sacrifice. It has tempered with
the oil inspectors in different states.
The laws of several states concerning
the inspection of oil are singularly de-
fective, and this has been turned to
profit by the Standard
THE commissions only knowledge
of the competitive methods of the
Standard Oil company is obtained
from evidence taken under cath in
this investigation. The Standard was
given permission to explain or rebut
the facts.
This. if true. demon strates the COM
petitive methods of the company In
the past have been unfair and dis
reputable. Its motto has been the de-
struction of competition at any cost
and this policy has been pursued with
out much reference to decency or con-
science and it is significant that the
larger Independent refiners sell the
greater part of their produce in for
eign countries. One independent tes-
titled that IS per cent of his product
went abroad and said that he could
compete with the Standard in Ger
many. where its methods as followed
in this country, would not be tolerat-
ed. but that he could not compete with
1t here.
On the question of remedies the re-
port says:
More than anything else the pipe
line has contributed to the Standard
Oil monopoly, and its supremacy must
continue until its rival enjoys the same
transportation facilities. The amend
ed act to regulate commerce makes |
the existing pipe lines common car
riers subject to that act, and the power !
to prescribe just the reasonable rates, |
and practices. after COM
plant and hearing, is conferred upon |
he commission. But the pipe line tar
ifs filed with the commission are az
eyed to be of no actual advantage to |
he independent operators. The COM /
mission only can act upon these sched- /
1les after complaint has been made
specific rates, regulations /
pr practices. Some complaints are now !
pending. How far the amended acr
will prove adequate to the correction /!
Of such injustice as now exists in re-
spect to this traffic remains to be seen. |
Since in the past petroleum rates |
have not always been established to |
promote, but often to check traffic |
and the tariffs are more or less per- i
meated with Determinations in favor /
Of the Standard OIL company, having !
been built up during a series of years |
in that view. it may be that this dis
will never be eliminated I
by any process of complaint against a |
specific rate nra ctice nv
the past, Determinations as to this !
traffic may arise more frequently than !
those now existing can be routed our !
by that method. AS to no other i'm I