The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1907-01-30

|
company, continued to operate it
under the OLD name, carrying the idea
to tie public that the company was
still independent and competing with
the Standard.
ct has used such purchased or in
dependently organized companies to
kill off competitors by such compa-
MES reducing prices.
'The operation Of such fake inde-
pendent concerns has been one of its
most effective means Of destroying
competition.
''The Standard has habitually re-
duced the price against its competitor
in a particular locality, while main
tanning it's prices at other places.
When competition was destroyed it
restored or advanced former prices .
The commissions only knowledge
of the competitive methods of the
Standard Oil company, says the re-
port, was obtained from evidence TAX
en- under oath. It is stated that the
Standard was given permission to ex-
plain or rebut the facts.
'This evidence if true" continues
the report, demonstrates that the
competitive methods of the company
in the past have been unfair and even
disreputable. It's motto has been the
destruction OF competition at any cost,
| and this policy has been pursued
without much reference to decency or
conscience, and it is significant that
the larger independent rehners sell
| the greater part Of their product in
foreign countries. One Independent
testified that rs per cent. of his pro-
duct went abroad, and said he could
compete with the Standard in Ger
many, where it's methods as followed
in this country would not be tolerat-
ed, but that he could not compete
with it here
It is the opinion Of the commission
that the existing law is inadequate to
cope with the evils complained Of.
cit may become necessary says
| the report, "for the uprooting of es-
tablished wrongs and the prevention
Of others that the government shall
| fix in the first instance the rates and
regulations for the transportation Of
oil. This method has been adopted
by the legislature of one State. 1t will
probably be found necessary to dis
associate, in the case Of oil, as in that
Of other commodities, the function Of
trasportation from that Of production
and transportation"
The investigation by the commits
sion failed to disclose any instance
where a railway company has been
| interested directly in oil lands or in
petroleum production. Only one in
stance was discovered where officials
Of railway company were interested
in the production and sale Of oil. This
related to certain officials Of the Bal
timore and Ohio Southwestern rail-
road who owned stock Of the Argand
Refining company, which was on
their recommendation afterwards sold
lubricating contract which the road
transferred to the Galena Oil compa-
ny, Standard concern.
Discussing in detail itc charges
against the Standard Oil company the
commission says, in part:
"The Standard Oil company largely
monopolizes the handling of petro-
leum from the mouth of the well un-
til it is sold to the retailer, and some
times to the consumer, and under Or
| binary circumstances its margin Of
profit is very large.
"The evidence shows little basis for
the contention that the enormous div
idends 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 rein
ers At the basis Of the monopoly
rests the pipe line. The Standard may
today pump oil from a well in Indian
Territory to its 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, if any,
above 80 cents. The Independent re-
finer is located usually near the
source Of the crude supply, but The
Standard locates it's refneries near
the great centers Of distribution. The
Independent refner in interior Kansas
finds it difficult to dispose of his
residuum, such as fuel oil because the
railroad rate is almost as much as it's
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 en-
ables the Standard absolutely to con-
troll the price Of crude petroleum and
the price which its competitors in
given locality shall pay 1t can raise
the price in one locality and obtain
it's own oil from another and reverse
the process when it desires to do so.
''The pipe line system Of the Stan
dard is not a natural, but rather an
artificial advantage. The reason why
long pipe lines competing with those
Of the Standard have not been pro-
vided is found in obstacles thrown in
the way Of such undertakings, having
been opposed by the railways, whose
right of way has generally stood as
Chinese wall against all attempts to
extend pipe lines. However; in cases
brought to the attention Of the COM
mission every facility has been ex-
tended by railways to the Standard for
the construction Of pipe lines.