Arizona republican., 1907-05-20
THE COUNTRIES
 OIL BUSINESS
ReyOrt of the Commits.
 SiOner of Corporations
The Standards Disregard of the Law Especially Dwelt Upon.

Washington May 19.-A report sub mitted to President Roosevelt by Com missioner of Corporations Smith. was made public today. It charges that the Standard oil has monopolized the petroleum industry for the past thir- ty-five years and has destroyed com petition; that less than dozen men have reaped enormous profits largely through abuse of transportation facil- ities. Certain information acquired is withheld for the present by the in structions of the president, who feels that its publication might interfere with the governments suits pending against the Standard oil and subsi- diary companies.
 The report contains a history of the growth of the Standard oil company and its affiliated corporations. and at tributes its dominating position to it's systematic disregard of the law. At tention is called to its violation of the rate law as to pipe lines.
 Concluding. the report says: "Thcse facts show, therefore. the enormous advantage which the Standard OH Company possesses over competing re- liners by reason of its control of the pipe lines in the id-Continent. Ill., nois. Lima Indiana, and Appalachian fields. Whether the Standarl pipe lines charge to the Standard refiner- ies these same exorbitant rates for transportation is obviously a matter of indifference to the Standard organi- zation asa whole. To the independent concern which might. if not otherwise restricted. make use of the Standard pipe lines. the excessive charges mean that it is at a tremendous disadvant age as compared with its great com retitor IL has been shown that the Standard charge for transportation from the Appalachian field to the sea board is more than 25 cents per barrel higher than the cost of transportation plus 10 per cent on the cost of repro ducing the pipe lines. This Is more than half a cent a gallon. and half a cent a gallon will bring a profit of about 10 per cent on the necessary investment in the refining business. The independent refiner whose plant Is situated in the oil regions is at an equal disadvantage in reaching large proportion of the markets of the coun- try: he must pay the rail freight rates on his refined product. while the Standard brings its crude oil to the TcfineTies near to the centers of con sumption a a cost but small fraction of the rail rate. Even those refiners who make use of the trunk pipe line of the Pure oil company from the Ap- palachian field to the seaboard. are at very considerable disadvantage. since this line is SO small that its ex penses per unit of product handled are considerably higher than those of the Standard
 "The Standards abuse of its pipe line monopoly is thus one of the great est sources of its power. If the Stand ard pipe lines were obliged to trans port oil for others at reasonable charge the opportunities for cOmpetit- ton in the refining business would be enormously increased. The failure of independent concerns to establish sim ilarly efficient pipe lines has not been due to the lack of enterprise or cap ital It has been due in part to the unfair practices of the Standard in directly attacking independent pipe line undertakings. and in part to the other unfair practices by which the Standard has attacked the indeDendent refiners in the marketing of their product and hence has prevented them from securing a sufficient volume of business to warrant the construction of great pipe line systems.