The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1907-08-15

those 81 the eonutract made NTH tha a..
lena. and that II the bid 81 the former ma
sWenid hsvs SAVED about tss.oooas yss asss a
q similar INSTANCE was that u the Louis.
VILE and Nashville Rallroad company.
;ram q, 81 3, nnd asa. eo1 prsssr w1 ~, Is ss, ss 8
paid IS per CEN Of the invoice prices -
against the - per e paid by the PENN
eylvania, and yet the oil company pro-
the fun invoice price would be paid. A
memorandum which the purchasing agent
submitted to the presidentsof the railroad
conSasy Ssoi Ish M', on the lie p1sPSed. s n trs
Galenas
Attached to h papers is a memoran-
dunn left by Mr.. - "a representative
have o see, which 1t Is claimed shows
the business his gave our road
in the way Of freight during the hrst n.ne
one-half months OF 1902
Apart From fabrication.
The railroad made a contract for two
years, from March ], 1903 with another
company. at prices 81 much lower that
for the two years OF this contract ME rail-
road company paid 80. 900 less han It
ofrered BY the Galena. When this contract
with The New York company expired, that
company offered still more favorable
terms. but in the face Of that offer the
the Galena and made a contract with 1t
at Its former excessive prices. The pur-
chasing agent Of the railroad testified that
pany were entirely satisfactory. The busi-
ness was taken from the New York Lub-
rtcating Oil company n given to the
S Saisea- prlesa for G sssssns e n ysEy m anaas
from the matter OF fabrication.
These Illustrations are typical OF the ex-
OF independent concerns In at
roads in competition with the Standard.
Except In rare instances, they are not In
vitcd to bid on contracts nor are their
ton, although the bids submitted and the
contracts made by some OF them In recent
show that they were ready and Of
fered to sell oils Of the same quality at
the invoice prices Of the Galena,
and even less,
As stated above. 1t is fair to use the
prices paid by. the Pennsylvania in Judging
the country. The total amount paid by
the ninety-four reads for which the bu-
G has returns, for lubricating oils used
Had this oil beeh bought at the prices paid
by the Pennsylvania, the payments would
been q, 3ss. 21s. or $1,s7S.755 less than
they actually paid. These figures cover
80 S4-C pei SO1lI. Va
the locomotive and car mileage of the
country. It Is probable that, taking into
consideration the total purchases of lubri-
rolling stock large quantities OF the same
oils are bought for other ~purposes) by all
railroad companies in the country under
contract with the Galena. the payments
600 per year more than the fair market
value of the lubricants. In all the evil
dence gathered on this subject there is
roads Of the country should pay the Stand
ard this excess OF 81 900, 900 per year except
the suggested connection between these
co. fIa f, and nd the d%,strib1 nu OF freight
the possible weight of financial influence.
Admitted Efficiency.
The obnoxious character of the Stand
price policy and It's methods is thus
made clear from the present report. The
combination, as Illustrated by its own his
tory. is a great benefit to the public. in
reducing costs and consequently prices.
It may readily be that in some industries
suits. 1t is probable that the Standard
by reason Of Its undoubtedly great eff
cheney. could, had it been content with
lower than would have been
possible for smaller concerns, and thus
have maintained its great proportion of
the business by wholly fair and legitimate
means.
The Standard Is, however, a most con-
spicuous example OF precisely the opposite
of a combination which maintains a sub
monopoly, not by superiority of
service and by charging reasonable prices,
but by unfair methods of destroying COM
petition; a combination which then uses
the power thus unfairly gained to Cypress
the public through wholly extortionate
prices. 1t has raised prices instead of
lowering them. 1t has pocketed all the
advantages Of It's economies instead Of
sharing them with the public. and has ad-
ded still further monopoly profits by
charging more than smaller and less
economical concerns could sell for If the
Standard allowed them the chance.
Some Of the unfair and illegal means by
which the Standard has been able to do
this have been proved in the reports al
ready published by his bureau, namely,
railroad determinations, wtde-reaching In
extent and enormous in degree: failure to
perform the duties of a cennmo carrier In
pip line transportation, and unjust meth
DDS Of destroying competition in that busi-
ness; and price discrimination Of the most
fragrant character. BY your direction. in
general against the Standard OIL company,
some of the more detailed evidence secured
by the bureau regarding price discrfmina-
ton Is at present withheld from pubIica-
ton: and the same is true OF evidence re-
garding other unfair practices, the most
Of which are the maintenance
Of bogus Independent companies, espion-
pecially by bribing railway employees to
disclose their shipments, and deception as
to the quality Of oils sold.
STANDARD OIL AND TWO