The Roswell daily record. [volume] (Roswell, N.M.) 1903-current, 1907-05-20

SCORES THE
OIL TRUST

Washington, May 2O.-The repor
of the Commissioner of Corporations
Herbert Knox Smith, was today trans
mitted to the President, regarding the
oil industry. This report was accom-
panied by the following letter of sub
initial:
Department of Commerce and Labor
Bureau of Corporations,
Washington, May 20. 1907
Sir: 1 have the honor to submit
herewith the part of the report on tbs
oil industry which mas to do with the
position of the Standard Oil Company
in that industry.
The first report on the industry was
that on the Transportation of Petro
leum, issued May 2, 1906. The pres
ent part sets forth additional results
of the investigation in connection
with selected topics. Further parts OF
this report, on other topics, will also
be issued shortly, as the same become
ready for publication, particularly on
prices and profits, on foreign trade,
and on the situation il California and
the Mid-Continent field.
aside from the parts above mentioned
certain other portions of the informa-
ton acquired during the course of this
investigation are for the present with
held from publication. This withhold
ing is in pursuance of your instruc-
tions, and based upon the fact that
the Government has filed at st. Louis
a bill in equity against the Standard
Oil Company and related concerns,
charging the defendants with viola
tions of the Sherman Antitrust Law.
The publication of all the facts now
in possession of the Bureau would
interfere with the proper prosecution
of that suit.
While the investigation has covered
the entire petroleum industry, it is
hardly necessary to say that one COM
pany, the Standard Oil Company of
New Jersey with its affiliated con-
Germs 0referred to for the sake of
convenience as the Standard Oil Com
pany or the Standard), is so far the
dominating factor in the industry tnat
its position therein is properly made
the subject matter of at least one
part of the report. A brief considera-
tion of the essential facts as to its
control makes this obvious.
A specific period, to-wit, the year
l9Uf, was SeIeCISu 10 WHICH W ISlSi
the general study of conditions. In
that year the Standard Oil Company
and affiliated concerns refined over
S4 per cent of the crude oil run thru
the refineries; produced more tnan
Sc per cent of the coultry's total out
put of Illuminating oil; maintained
a similar proportion of the export
trade in Illuminating oil; transported
through pipe lines nearly nine-teltls
of the crude oil of the older fields and
SO per cent of the crude oil of the Mid
Continent, or Kansas Territory field;
secured over SS per cent of the sales
of Illuminating oil to retail dealers
the country, and obtained
in certain large sections as high as
80 per cent of sucn sales. 1t also con-
trolled practically similar proportions
of the production and marketing of
gasoline and lubricating oil, While
handling a much smaller proportion
Of the oil, both crude and refined, in
the Gulf and California fields, this
fact has little significance as to its
control of Illuminating oil. gasoline,
and lubricating oil for the reason
that the crude oil of those particular
fields produces comparatively small
per cent of these products and is
lsed mostly for fuel.
Detitors in the refining business about
IS small refineries, whose total con-
sumption of crude oil is less than that
If a single one of the Standard, to wit
he Bayonne refinery, and less than
e-fifth of the Standards total con-
Over Is of these competitors
Ire dependent for their supply of
crude oil upon the Standards pipe
ines, and are so restricted by this
as to be capable of little
competition or growth. In
he pipeline business of the eastern
md Mid-Continent fields it has up to
Pure Oil Company
md that competitors pipe line busi-
less is not more than one-twentieth
If that of the Standard.
The general outline of the history |
If the Standard Oil Company is so
veil known as to need but little repe- |
ition. 1t is only necessary to point |
mt certain salient facts and conclu- |
ions therefrom.
The most important fact is that |
throughout the entire history of this |
,oncern, from 1867 to the present, |
throughout its various forms and in |
pite of several purely formal reorgan |
Zations. there has been an absolute |
There has been apparent |
their operation a definite,
'ersistent policy of exclusive domina-
ion of the petroleum industry.
Starting with the partnership of
Andrews & Flagler. form
ID in 1867, in 1870 these interests
ook the corporate form of the Stan
ard Oil Company. of Ohio, with 4
capitalization of LOCO, 100000. At that
ime they controlled not over 10 per-
ent of the refining business of the
ountry. Within ten years from that
ate the process of combination under
nese interests had been so rapid that
hey admittedly controlled from 80 to
5 per cent of this branch of oil indus
~, and their control of the pipeline
usiness had increased with equal
apidity. Tho commanding position
aving been gained, in 1882 they con-
entrated their holdings under the
standard Oil Trust, which included
ne entire stock of IA companies and
majority interest in 26 additional
sSe capitalization of the trust was
20 .000. 900 and the appraised valua-
lon of Its property over SIS. 5.000, ,000g