New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-20

ybipping points We're brought to light by this bu-
the transporfaton Of petroleum one of these Sc
cret rates exposed in that report has already been
The STANDARD at Chicago. and numerous other in
dictments based on secret rates similarly exposed
are now pending.
RAILROAD D1scA1MINArIoN
Within after os the if 5o fs tSs s St 5ae
ard interests had acquired position in the oil in,
onstrs almost nor Satte b fhe most impor
single element IN this early extension or the
this entire period the Standard interests almost
constantly obtained concessions Of immense impor-
The south Improvement ComPany scandal 1al+ has Ia;
credible contract between !hat company anu sjI
leading oil carrying railroads. providing, as II uld
the shipments of that concern but on those or It's
competitors as wen. was terminated almost imme-
vantages were later repeatedly obtained by Stand
Numerous arrangements were made under which
the open rates oil were advanced against the in
dependent shipper and a rebate given to the stan
over, given 10 the Standard on shipments Of its
competitors, and this over very cons1 periods
of time The provision was often insisted upon by
allowed it's competitors unless these able TO
lender amount of business as valuable as that
illustration Of the Importance Of these dscrim!na,
tons, at time when the open rate on crude oil
81 10 barrel the Standard OH Company. by a
cumulative arrangement Of rebates was able to
ship SSlk cents while the refined product it
paid only SO a barrel. against 81 AN
charged its competitors An officer of the Penn
sylvania Railroad Company admitting these ex-
traordinary determinations significantly added THAI
ping at that time-a statement which. IN view of
the determinations indicated. may readily be
The railroads also aided the Standard in securing
Tide Water Pipe Line Company. independent
concern laid its pipe line 70 point near TIE A.
duced The open rate from Western Pennsylvania
from 81 10 TO cents barrel, while the Standard
got still lower secret rates. At that time and at
terest of the Standard Oil Company than in their
own have hindered and prevented the construction
OF independent pipe ines by refusing rights way
across their roadbeds The railroads have, more
vantage Ia refiring due 70 is Sire lire MONOPOLY
du Mhsh s6nqa Of Oh The a a aad c6
Germ and had completed pipe line Of its own
tidewater the railroads. whose natural policy would
have been 10 foster the business OF independents by
Keeping charges crude and refined OIL low, ad-
vanced their rates to the seaboard instead precti
cal!y preventing competitors of the STANDARD from
the Pennsylvania. allotted 26 per cent of the
business of transporting petroleum from che Appa-
maintaining rates agreeable TO the National Transit
Company STANDARD; Other similar increases of
Of ,s STANDARD Ts. pipe lines .--,. .-,.--,-,
t fact gannot be zoo str9ngy emphasized that
power to-day was contributed by railroads in the
company at the beginning OF its career. These
abuses continued almost extensively after the
domination Of the Standard had been established.
During the sos common form of dscrinina-
LII ~ SiNF iAi1Nlt lD"fE rates On Oh IL TANK
West raiIroaas deiiberateI er3arsd 51tn an aT
~, |-,b ,I Ilt9 an ar
to be occasionally reduced for short periods after
previous notice 10 the Standard in order to allow
The Standard on Company to accumulate supplies
on the Pacific Coast, after which they were TO be
promptly advanced in arder TO prevent independ-
entf from placing s,1go their oil in that territory
lost much of their effect had competitors of the
Standard Oil Company been able advantage
pipe lines since this would have enabled them 10
establish reineries vicinity Of the great dis
radTlN aiybt
costs on the refined product BY the laws Of Penn
lines have long been declared common carriers.
II the independent oil producers and refners could
have used the standards pipe lines without re-
striction and at reasonable rates, they could have
6ass % 1 as sown on az fY b6 ths
Standard pipe lines have been practically closed to
means If transportafion the Standard has bitterv
fought the construction OF Independent pipe lines.
and has resoTted 70 unfair methods OF competition
succeeded in getting lines established detailed
description Of these Practices against Independent
HEY be briefly summarized here
ATTACKING INDEPENDENT PIPE LINES.
One method adopted by the Standard OIL Com
pany TO prevent independent interests from laying
PIPE ines parucnla 1 TO the Atlantic seaboard.
rivai line was TO follow or to secure rights of way
method has been to enlist the support OF railroads
IN Gstusng 10 rival rights of way across their
pipe lines delay. litigation and expense even in
oN4leS Nieie ileg nave Dy law the right of emf
nent domain - 100
Another method several times employed by Stand
ara interests Is 10 obtain complete partial con
trol OF independent pipe line enterprises hv nur-
chase OF part OF their securities AS the stocks OF
several such concerns have been widely distrib-
nted the Standard by Offering absurdly high prices
mas oeen able 10 buy up a large proportion In the
case OF the Iidewater Pipe COMPANY the mr.
chase OF large interest in the stock Iinouesion-
amy proved an efficient forcing. that CON
Germ into virtual subsection. Similar atten1Dfs
were made 70 dominate the United States Pine Line
company and the Producers and Rehners' on
company; but in each instance these tactics were
defeated, though the Standard has represent atiyas
on the directorate OF the former. the
standard has purchased oil wells refneries upon
which competing pipe line dependent thus
reducing its volume OF business and Increasing IT'S
costs a unit. This method was employed in ar
tacking the T1dewater Pipe Company and the Pro
ducers and Refiners' Pipe Line.
Inc most ehective method. however employed
the payment Of '-premiums'' on crude oil az the
wells TO those producers in the Immediate vicinity
OF the independent line That is TO say the Stand
ard OH Company has frequently gone TO the pro
ducers supplying. or likely 20 supply the rival
line and offered for their oil to 20 cents a barrel
Dr. even more, above the current price In view
OF the immense operations OF the Standard the
company can easily afford to pay such premiums
on the limited amount OF oil affected by competi-
ton without influencing TO appreciable degree
tho average price which IL pays: whereas. I'm the
OF small competitor. the payment of an eoual
premium 70 retain his patrons affects very large
percentage, or perhaps all. OF his purchases and