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


In 1892, as a result of a legal attack
on this form of organization, the trus
tees announced that the trust would
be dissolved, and a process of SO
called dissolution took place. This in
no way, however, affected the origi
lal control of the aforesaid individuals
over the entire concern, because the
stocks of each of the various subsid-
ary corporations were not returned
to their original holders, but were al
| loted to the holders of trust certificat-
es on pro rata basis, with the result
| that the trusees, who had previously
held the majority of the trust certi-
Gates, now held majority of interest
in each one of the constituent com
pa1ies.
In 1898 contempt proceedings were
started against the Standard Oil Com
pany of Ohio on the ground that it
| had not withdrawn from the trust.
| Thereupon, pending the decision,
| these interests selected the Standard
| Oil Company of New Jersey as a hold
| ing corporation for the constituent
| Standard companies and increased it's
stock to $10O, ,000,0 900, for that purpose
This company then gave its own stock
| in exchange for the stock of such
companies. This change, like the pre-
viOus one in 1892, as was its obvious
purpose, left the monopoly power of
the Standard capitalists undisturbed.
The same group of men who had been
holders of a majority of the trust GER
tificates, then a majority of the sub
sidary companies, now became hold
ers of a majority of the stock of the
controlling New Jersey company
The outstanding stock of this COM
pany is about $9S, ,000, 900. 1t controls
at least 10 refining companies, lu-
bricating oil, companies, crude oil
producing companies, 13 pipe line and
other transportation companies, 6 mar
keting companies, 16 natural gas
companies, and Is foreign concerns,
besides having close affiliations with
a considerable number of other con-
Germs.
For many years, and until about
1900, the oil industry of the country
rested almost wholly on two great
eastern fields, the so-called Appalach-
ian and LimaIndiana fields, in both
of which the Standard was dominant.
In five years ending with 1900, the
oil from these fields was 95 per cent
of the total output of the United
States. Since 1900 there has been a
very large new development of oil
production in the so-called Mid-Conti-
nent, Gulf. and California fields, the
Mid Continent lying in Kansas and
Oklahoma; The Gulf in Texas and
Louisiana, and the California in the
southern half of that State. These de-
velopments, however, have not sub
stantially affected the Standards con
troll of the industry, because the Stan
dard has been able to acquire the
Mid-Continent field substantially the
same control as in the older fields,
while as state above, the crude oil
of the Gulf and California fields is
chiefly of such a character that it
does not materially affect the refining
industry.
In the past two years there has also
been developed a new and very i'm
portant field in Illinois, and in this
field also the Standard is at present
line outlet therefrom, and has ac-
quired holdings there estimated at
about one-nalf of the oil lands of that
field. The Mid Continent and Illinois
field together now produce so per
cent more oil than the Appalachian
and Iima-Indiana fields combined. |
The growing importance of these two
new fields, therefore indicates strong
ly the necessity of considering with |
date, such suggestions for future re-
facts set forth in this report.
1t is of the utmost importance to in |
dicate clearly those fundamental facts |
that form the basis of the Standards |
power. The monopoly of this concern |
has never rested on ownership of the |
source of supply of crude oil. Not !
over one-sixth of the total production |
of crude in the country in 1905 came |
from wells owned by the Standard in
terests. 1t can not be too strongly |
that its growth and pre-
sent power rests primarily on the con- |
troll of transportation facilities in one
form or another. Additional means |
of domination have been found in To-
cal price discrimination and other
unfair competitive methods in the sale
of products, as we'll as in the elimi1a-
ton of the jobber; but throughout its
entire history the factor of ransporta-
ton has been the keystone of its
success.
The scandalous railway discrimi-
nations obtained by the Standard in
its earlier years as against it's COM
petitors did more than all other causes
together to establish it in its control
ling position. Later, when the rebate
Continued on Page Four.)
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