The Clarksburg telegram. [volume] (Clarksburg, W. Va.) 1874-1926, 1907-08-08

ing concerns to charge reasonable
rates. 1t is the duty of the Stand
ard pipe lines. under the laws Of
several States and under the Fed
eral law, to act as common carriers,
transporting oil for others at rea-
sonable rates. II the Standard did
this, its advantage over its present
competitors would be enormously
reduced. As has been shown in
Part l Of this report, the Standard
pipe lines have very generally failed
and refused to transport oil for 9th
ers, and in the rare cases where they
do SO have charged altogether extor-
Tomato rates. One of the principal
advantages, therefore, which the
standar dpossesses over competitors
in respect to costs is an improper
and even an Illegal advantage.
Even by the aid OF this advantage
in respect to pipe lines. however, the
Standard. as has already been demon
strated, does not, as matter OF
fact, sell oil for less than Its COM
petitors can AFFORD to charge. It
EFFORTS profit over and above all
the profits due to It's economics. The
question arises how the Standard is
able to maintain Its substantial
monopoly while still charging such
prices. What, 1t may be asked. is
to prevent independent concerns from
either taking away part of the
Standards trade or forcing 1t to re-
duce prices? The answer to this
question is found in the unfair prac-
tees of the Standard.
1.-THE most important OF these, the
corner stone on which the Standards
power was first built up, was rail-
road discrimination. The Standard
was able to maintain in position this
primary support of its domination
down nearly to the present time
that is, until Its system OF preferen-
tlal freight rates, secret or open, was
exposed by the report of this Bureau
on the Transportation OF Petroleum
In May. 1906. The difference be-
tween the rates charged to the
Standard by the railroads and the
rates charged to Independent con-
Germs for similar service has, in
many cases and for enormous areas.
been alone greater than fair profit.
Almost equally effective In main
tanning the Standards position have
been Its unfair methods OF competi-
ton in the selling of products. The
immense Importance OF the practice
of price discrimination In restrain
ing the business OF competitors and
augmenting the aggregate profits OF
the Standard will be set forth later.
The Bureau has also secured a great
mass OF evidence regarding other
unfair practices of the Standard,
most of which, however, are simply
uxiliary means OF rendering price
discrimination effective. Thus, the
Standard maintains bogus independ-
ent companies and thereby is able to
escape the disadvantage due to anti
trust sentiment. as well as to cut
prices to the particular customers oil
competitors without incurring the
further loss Of cutting prices to the
entire trade in the locality. Again,
the Standard maintains an elaborate
system OF espionage on the business
of Independent concerns, in particu-
lar securing almost complete reports
OF their receipts and shipments Of oil
by bribing railroad employees. This
practice enables the Standard to
direct its policy of local price cutting
in the most effective manner. other
less important methods of unfair
pursued by the Standard
are the giving of short measure and
deception regarding the quality of
the oil sold.
without railroad Determinations
and unfair methods of competition
the Standard could never have main
tanned its great proportion of the oil
business in the United States while
at the same time extortlng such i'm
mense profits from the American
consumer. The claim of the Stand
ard that its control of the business
is due to its ability to maintain low
prices because OF superior efficiency
is a complete Misrepresentation of
the facts"