The Roswell daily record. [volume] (Roswell, N.M.) 1903-current, 1907-01-30

Washington, Jan. 2S.-The Inter
state Commerce Commission sent to
Congress a report of the Investigations
made by ii under the Tillman-Gilles-
pie resolutions concerning their rela-
tions of common carriers by rail to the
production n distribution. of OIL.
The report covers the distribution of
petroleum and its products east 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 its mono
poly" 1t is asserted that tine ruin
of its competitors has been a distinct
part of the policy of h Standard Oil
Company in the past, Systematically
and persiste1tly pursued"
n instance" the report says, lis
found where any railway Company
has been interested in oil lands or in
petroleum production, and only one
instance is shown where officials of
a railway were interested
in the production and sale of oil. This
relates to certain officials of the Bal
timore and Ohio Southwestern Rail
road having owned stock of h Ar
gand Refining Company, which was
on their recommendation afterwards
old to the Standard Oil Company
and the Lubricating contract which
the road transferred to the Galene
Oil company, a Standard Company.
THE Standard Oil Company largely
monopolizes the handling of petroleum
from the mouth of the well until it is
sold to the retailer anu some times
to the and under ordinary
circumstances its margin of profit
is very large. Estimates made in the
export show nat a profit or refined oil
from the sugar Creek Refinery at
Kansas City of from five to eight Gets.
per gallon. A much higher profit is
indicated for gasoline. The sale of
refne oil from the large Standard
Refinery at Whiting is corresponding
ly profitable.
THE evidence shows little basis for
the contention that the enormous di-
vidends of the Standard Oil Company
are the legitimate result of its econo-
mics. Except for its pipe lines the
Standard has but little legitimate ad-
vantage over the independent refiner.
1.-The Standard buys advertising
space in many newspapers which it
fills. not with advertisements, but
with reading matter prepared by its
agents kept for that purpose. and paid
for at advertising rates. as ordinary
news. The assumption is that this
literature furnishes many of the ideas
touching h great benefits conferred
upon the public by the Standard Oil
Company.
Possession of the Pipe lines enab-
les the Standard absolutely to control
the price of crude petroleum and the
price which its competitors in a given
locality shall pay. It can raise the
price in one locality and obtain its
own oil from another. and reverse the
process when it desires to do so.
Whoever controls the of
transportation of the raw material or
of he refined product can speedily
drive his competitors out of existence
and the production and distribution
of petroleum is no exception to the
rule"
the pipe line system of the Stand
ard. the report contends, is not a ma
tural, but rather al artificial adva1-
tage. 1t is argued that the reason
why long pipe lines competing with
those of the Standard have not been
provided is found in obstacles in the
way of such undertakings having been
opposed by the railroads wnose right
of way has generally stood as a Chi
nese wall against all attempts to ex-
tend pipe lines. Ordinarily. it is
said. the Standard has not received
rebates in recen years. so far as has
been discovered, but it has aeverthe-
less enjoyed secret rates possessing
all of the elements of Illegal rates and
the advantages so obtained over indie
pendent shippers have been of very
great value to that company. Numer-
GUS Instances of discrimination in IA
vor of the Standard resulting from the
published railway rates were found.
says the report In this connection
b following is an instance give:
A low rate of 10 cents per o pounds
upon petroleum and its products exist
ed for many years from Neodosha,
Kansas, where the Standard operated
a refinery. to Kansas City, This was
for the interest of the Standard; but
when h Standard constructed Its
refinery at Sugar Greek. Kan, and