The Birmingham age-herald., 1907-01-29
Interstate Commerce Commission
 Makes Report to Congress
UNFAIR AND O.SREPUTABLE
Says Standard on's Policy Is to sys- tematlcally Ruin Competitors, and Secret Railroad Rates Make
 It Possible to Do So.

Washington. D. c. January 28.--The interstate commerce commission today sent to congress report of the investi- gations made by it under the Tillman- Gillespie resolution approved March 7th last. concerning tho relations of conn mon carriers by rail to the production and distribution of oil The report cov- | CTS the distribution of petroleum and it's products cast of the Mississippi river. | and incidentally the Kansas and Texas fields The report points out generally the methods by which the Standard oil company has built up and perpetuated it's monopoly and the relations of trans portatlon agencies to that monopoly" It is asserted that "the ruin of it's com petitors has been distinct part of the policy of the Standard oil company in the past, systematically and consistently pursued"
 Considerable of the ground covered has been gone into fully in the report on oil and it's distribution, made public by the bureau of corporations.
 No instance" the report says. Ifs found where any railway company has been interested in oil lands or in petro- eum production and only one instance is shown where officials of a railway company were interested In the produc- ton and sale of oil, This relates to certain officials of the Baltimore and Ohio Southwestern railroad having owned stock of the Argand Refining company. which was on their recommendation af- l forwards sold to the Standard and the 1 lIbricating contract of the road trans ferred to the Galena on company, a l Standard company
 Immense Profits.
 "1he Standard oil company largely l monopozes the handling of petroleum | from the mouth of the well until 1t is | sold to the retailer, and under ordinary instances it's margin of profit Is very
 large Estimates made In the report show a profit on refined oil from the Su
 gar Creek refinery at Kansas City, of ] from to 8 cents per gallon A much 1 higher profit Is indicated for gasoline. The sale of refined oii from the large 1 Standard refinery at Whiting, Ind. is | correspondingly profitable
 "The evidence shows little basis for 1 tho contention that the enormous divl- dends of the Standard oil company are l the legitimate results of it's economies.
 Except for it's pipe lines. the Standard has but little legitimate advantage over | the Independent refner.
 The Standard buys advertising | space in many newspapers which 1t fills l not with advertisements but with read 1 ing matter, prepared by agens kept for 1 that purpose, and paid for at advertising rates as ordinary news matter. The as- sumption is that this literature furnishes
 many of the ideas touching the great benefits conferred upon the public by the Standard OH company.
 Controls Situation.
 Possession of the pipe lines enables l the Standard to absolutely control the price of crude petroleum, and the price | which it's competitors in a given locality l shall pay. It oan raise the price in one | locality and obtain it's own oil from an- l other and reverse the process when 1t
 desires to do 80. Whoever controls the avenues of transportation of the raw ma l terial or of the refined product can speed 1 idly drive his competitors out of exist 1 ence, and the production and distribu- ton of petroleum is no exception to the | rule.
 "I'hs pipe line system of the Standard !" | the report contends, is not a natural, | but rather an artificial advantage. It is | argued that the resaon why long pipe l lines competing with those of the Stand | ard have not been provided. Is found in
 
 dertaIungs having been opposed by the l railroads, whose right of way has gen 1 orally stood as Chinese wall against | all attempts to extend pipe lines. Ordi- 1 narily 1t s said the Standard has not re- l oeived rebates ln recent years, so far l has been discovered but ft has neverthe-
 less enjoyed secret rebates possessing all l of the elements of illegal rates, and the l advantages so obtained. over Independent l shippers have been of very great value
 to that company.
 Rstae Determinations. "Nnnspous instances of discrimination | in favor of the Standard resulting from the published railroad rates were 1uund,' | says the report. Tn this connection the following Is an instance given by the l commission
 | "A low rate of 10 cents per 100 pounds upon petroleum and it's prudlBctjom ex- | isted from Eeodosha, Kas.. for years, l where the Standard operated a refinery. 1 to Kansas City. This was for the interest | of the Standard, but when the Standard l constructed it's refinery at Sugar Crock, l Kansas City, and connected 1t by pipe l line with the Kansas oil wells, the rail l rate was advanced from 10 cents to 17 | dAnts per 100 pounds. While the railway 1 insists that this was not done at the l instance of the Standard. the significant 1 fact remains in this and many other 1 cases called to the oommission's attention l that the rate was not changed until it | came to be for the interest of the Stand | ard that 1t should be changed. and 1t | was also changed as that company would | naturally desire"
 l Tn discussing the assertion contained in | the report that ''The ruin of it's competi- tors has been q distinct part Of the policy | of the Standard oil company the com | mission says tpat one method has been | the organization of a perfect system of | espionage over the shipments of it's com petitors, resulting in knowledge as to the | destination of every car of oil leaving | the refinery of an independent. Agent Held Responsible. The Standard agent at the destination,
 says the report is held responsible If the | Independent oil is sold.
 The report continues:
 'It does not appear that the railroad companies have directed the furnishing
 of this information. although that prac- tlce has been sanctioned by superior of ] ncials of the roads. but 1t does appear that such information Is systematically |