Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-05-20
Commissioner Of Corporations
Shows Up the Power OBJ
tanned By Standard
lNlaN,rles Barred TO PUBLIC
Defiance Of Rate Law Insofar as Pike
Lines are Concerned Pointed Out in
Report to President-Domna alton by
tho Stand ard-Rebate System Key to
Power-More Vet to Tell.

Washington, May 20.-More amazing
in connection with the In
iquitous practices of the Standard Oil
Company are made In section OF the
report of the commissioner of corpora
lions on his investigation of the oil IN
dustry Of the country made public here
yesterday.
The report shows that the great
of the Standards operations
has been attained thru unfair and pre-
datory practices, involving the EXTERN
ination or Gripping of rivals and the
Of the rise Of new ones thru
the use of vexatious and oppressive
methods. 1t establishes that the policy
of the corporation has been "a dellb-
crate destruction of competition and
"a consequent control of the Industry
by less than dozen men who reaped
enormous profits therefrom."
The names Of these men are given
as
John d. Rockefeller, who owns more
than two-fifths of the stock, Henry NJ
F'lagler, who owns about one-eishth;
Charles Pratt, who has a slightly
smaller interest; o. H. Payne, who has
one ninth of the stock under his con-
troll; William Rockefeller, j. A. Bost-
wick, w. G.. Warden. John D. Arch
bold and Benjamin Brewster.
The report declares:
That the Standard, while owning
only one-sixtil of the wells, handles
seven eighths of the crude oil supply.
That the Standard controls seven
eighths Of the production Of illuminat-
ing oil, gasoline, lubricating oils, and
paraffin wax.
That this monopoly has been secured,
not by superior ability and RESOURCES,
as claimed by the Standard, but by I'M
fair practices. grouped under three
heads, as follows:
fragrant railroad discrimination In the
form partly of secret rates and partly
Of open rates more favorable from
Standard than from independent ship
ping points
Refusal to operate its pipe line sys-
ten1--4O.000 miles in length-so as to
extend to Independent interests the
benefits to which they both legally and
morally are entitled, while at the same
time preventing such independent in
terests from constructing lines of their
own. Prosecution of the Standard for
failure to conform to the common car
rier provision in the railroad rate law
of 1906 is suggested.
Unfair methods in selling products,
including the bulk system Of delivery,
which lends itself to the avoidance of
and to discrimination, the
Of the jobber, which en-
ables it to maintain differences in
prices between different towns and sec
tons Of the country out of all proper
ton to differences in cost, and the es-
adjustment of bogus independent con-
Germs. which really are controlled by
the Standard.
After reviewing the facts, published
in prior reports with reference to the
operations, the commission
er says that data in his possession
bearing on the same subject are with
held upon the fact that the govern
tnent has filed at st. Louis bill in
equity against the Standard Oil Com
pany and related concerns, charging
the, defendants with violations Of the
Sherman antitrust law. The publica-
ton Of all the facts now in possession
Of the bureau, he says. would interfere
with the proper prosecution Of that
suit.
Summarizing the result of the inves-
legations, the commissioners report
says, in part:
1.-The year 1904 was selected to which
to refer the general study of condi-
lions. In that year the Standard Oil
company and affiliated concerns refined
over "a per cent of the crude oil run
thru refneries; produced more than SO
per cent of the country's total output
Of Illuminating oil; maintained sim
liar proportion of the export trade in
oil; transported thru pipe
lines nearly nine-tenths Of the crude
oil of the older Nfields and SO per cent
Of the crude of the midcontinent, or
Kansas territory field; secured over
sS per cent Of the saleA Of illuminat-
ing oil to retail dealers thruout the
country, and obtained in certain large
sections as high as 80 per cent of such
sales. 1t also controlled practically
similar proportions Of the production
and marketing Of gasoline and lubr1-
eating oil.
cit is of the utmost Importance to
Indicate clearly those fundamental
facts that form the basis of the Stand
ards power. The monopoly of. this
concern has never rested on ownership
of the source of supply of crude Oil.
Not over e-sixth of the total pro-
auction Of crude oil in the country in
1905 came from wells owned by the
Standard interests. 1t cannot be too
emphasized that it's growth
and present power rests primarily on
the control of transportation facilities
in one form or another. Additional
means of domination have been found
in local price discrimination and other
unfairlcompetitive methods in the sale
of products. as we'll is in the elimina-
ton of the jobber; but turnout it's en-
tire history the factor of transporta-
ton has been the keystone of it's sue
cess.
"The scandalous railway discrimina-
tons obtained against its competitors
did more than all other causes to-
gether to establish it in its controlling
position Later, when the rebate was
--------------- -
n Drink Pabst Blue
. ~ Ribbon at meals and be-
NJ, tween meals, and you need
never WnrrY about dYs-