Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1907-02-01

the standard mas out little leBitlmate
advantage over the independent re-
flners. At the basis Of the monopoly
rests the pipe line. The Standard may
today pump oil from a we'll In Indian
Territory to it's refinery at Jersey City.
The cost Of piping a barrel Of oil from
the Kansas field to the Atlantic sea-
board would not be much, IL any,
above thirty cents. The independent
refiner Is located usually near the
source of the crude supply, but the
Standard locates its refineries near
the great centers Of distribution. The
independent refiner in interior Kansas
finds 1t difficult to dispose Of this resid-
umm, such as fuel oil, because the
railroad rate Is almost as much as its
value: but the Standard has at the
doors Of its refinery in Kansas City a
market at a favorable price for large
part of this by-product. and this is
Of itself an enormous advantage.
Possession of the pipe lines enables
the Standard absolutely to control the
prices of crude petroleum and the price
which its competitors in a given local
ity shall pay. 1t can raise the price In
one locality and obtain its own oil
from another and reverse the process
when it desires to do so.
1.-The pipe line system OF the Stand
ard is not a natural but rather an arti-
fetal advantage. The reason why lone
pipe lines competing with those OF
the Standard have not been provided
way of such undertakings. having
been opposed by the railways. whose
right Of way has generally stood as a
Chinese wall against all attempts to
extend pipe lines. However. in cases
brought to the attention of the COM
mission every facility has been extend
ed by the railways to the Standard
for the construction Of pipe lines.
while the Standard has not receiv-
ed rebates 1t has nevertheless enjoy
ed secret rates possessing all of the
yelements of Illegal rates and the ad-
vantages so obtained over independ-
ent shippers have been a very great
value to that company"
The commission then relates several
instances Of this kind similar to those
detailed in the report Of the commits
sioner Of corporations, and proceeds:
"The ruin Of its competitors has
been a distinct part of the policy OF
the Standard Oil company in the past
and persistently pur-
sued. One method has been the or
ganization of a perfect system Of es-
tpionage over the shipments Of its COM
petitors, resulting in knowledge as to
the destination of every car Of oil
leaving the refinery of an independent
The Standard agent at the destination
Is held responsible IL the independent
oil is sold. 1t does not appear that
the railroad companies have directed
the furnishing of this information or
that the practice has been sanctioned
by superior officials Of the road, but
1T does appear that such information
Is systematically obtained from rail-
road employees. The testimony shows
that the Standard at one time, II II
docs not now, devoted fund to the
purpose of obtaining the infarmotion
1T has frequently happened when the
supply of Independent oil in partic-
ular territory was low and a shipment
was peculiarly necessary, that the
shipment has unaccountably gone as
tray.
Information also appears to have
been given the Union Tank Line, a
creature Of the Standard, concerning
the whereabouts Of its cars, while
such information was not furnished to
other owners Of tank cars, and some
discrimination in tank car mileage In
favor of the tank line Is shown for
one railroad. Many roads issued
passes on account of the Union Tank
Line which were in fact used by SELL
ing agents Of the Standard. Many To-
cal agents of roads have been in the
employ Of the Standard, and this may
account for the unsatisfactory service
accorded to independent shippers.
Most roads charge higher rates on
oil in tank cars destined to consignees
who do not have proper facilities for
unloading. such as storage tanks so
situated that the oil can be transferred
by pipe from the tank car to the stor-
age tank.
This has brought about the erec-
tion Of distribution tanks in all parts
Of the country. The tanks are neces-
sarily located near the railroad tracks,
and there was much complaint that
the railroads allowed the Standard to
erect it's tanks at convenient points on
the railroad right of way and declined
to accord this privilege to Independent
refiners. The commission is satisfied
that such discrimination has been very
generally practiced in the past
Closing its report with a discussion
of the difficulties confronting the gov
III SOpiib WIN ehSoS S''S'
the commission says:
"Since in the past petroleum rates
have not always been established to
promote, but often to check, traffic, and
the tariffs are more or less permeated
with determinations in favor Of the
Standard Oil company, it may be that
this discrimination will never be elm
mated by any process of complaint
against specific rates or practice. Judg-
ing by the past determinations as to
this traffic may arise more frequently
than those now existing can be routed
out by that method. In no other i'm
portant traffic is there an approach to
the monopoly of the Standard Oil COM
pany in that of oil. What other reme-
dies in addition to those already pro-
vided it may be necessary to prescribe
can be better determined in the near
future by the result of experience in
administering the present law"
-~$--
PLANTS NEED MORE BREATH.-Of-
ficials of the department of agricul-
ture are much interested In expert
ments that have recently been made
with the view Of bringing out certain
facts as to the circulation of air in