The Oakes times. [volume] (Oakes, N.D.) 1906-current, 1907-01-31
COMMERCE COMMISSION SENDS
REPORT TO CONGRESS on
OIL INVESTIGATION.
.oMpEuHs POLICY OF THE TRUST
RUIN OF COMPETITORS ONE OF
THE PRINCIPAL FEATURES
OF THE SYSTEM.

Washington, Jan. 29.-The inter-
state commerce commission has sent
to congress report of the investiga-
tions made by it under the Tillman-
Gillespie resolution concerning the re-
lations of common carriers by rail to
the production and 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 it's monopoly
and the relations Of transportation
agencies to that monopoly" 1t is as.
serted that "the ruin Of its compel
ttors has been a distinct part Of the
policy Of the Standard Oil company
in the past, systematically and per-
sistently pursued"
"The Standard Oil company" the
report says. largely monopolizes the
handling of petroleum from the mouth
Of the we'll until it is sold to the re-
taller and sometimes to the consumer
and under ordinary circumstances its
margin of profit is very large. The
profit on refined oil from the Sugar
Creek refinery at Kansas City is from
s to 8 cents per gallon. A much higher
profit is indicated for gasoline. The
sale OF refined oil, from the large
Standard refinery at Whiting is CORE
spondingly profitable.
Not Result Of Economy.
"The evidence shows little basis for
the contention that the enormous
dividends of the Standard Oil COM
pany are the legitimate, result of its
economics. Except for its pipe lines
the Standard has but little legitimate
advantage over the independent re.
finer.
"The Standard buys advertising
space In many newspapers. which it
fills, not with advertisements, but
with reading matter prepared by
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 the great benefits conferred
upon the public by the Standard Oil
company.
"The pipe line system of the Stand.
ard is not a natural but rather an
artificial advantage. It is argued that
the reason why long pipe lines COM
peting with those Of the Standard
have not been provided is found in oh.
stacles In the way Of such undertake
ings having been opposed by the rail-
roads, whose right of way has gen.
orally stood as Chinese wall against
all attempts to extend pipe lines. Or
dinarily the Standard has not received
rebates in recent years, SO far as has
been discovered, but it has neverthe-
less enjoyed secret rates possessing
all of the elements of illegal rates and
the advantages so obtained over inde-
pendent shippers have been Of very
great value to that company"
Destruction Of Competition.
In discussing the assertion con-
tanned In the report that "the ruin of
its competitors has been a distinct
part Of the policy of the Standard Oil
company" the commission states that
one method has been the organization
of a perfect system of espionage over
the shipments Of its competitors, re-
sulting in knowledge as to the destina-
lion Of every car of oil leaving the
refinery of an Independent. The
Standard agent at the destination,
says the report, is held responsible If
the Independent oil Is sold.
The assertion is made that it is the
practice of the Standard whenever
competitor erects storage plant to
which the oil is transferred from the
tank car to reduce the price of oil in
that locality to such a point as to
make the business Improbable to
such a competitor, while prices are
maintained in other localities. There
was much complaint that the railroads
allowed the Standard to erect its
tanks at convenient points on the rail-
road right Of way and declined to ac-
cord this privilege to independent re-
finers. The commission says it is sat-,
tsfied that such discrimination has
been very generally practiced in the
past.
Last Of the Beeehers Dead.
Hartford, Conn.,, Jan. 25.-Mrs. Isa-
bella Beecher Hooker, the last Of the
children of Rev. Lyman Beecher, SIS
ter of Henry Ward Beecher and Har-
riet Beecher Stowe. died at her home
here at $3.50 a m. She was born in
J.itchfield, Conn, Feb. 20, 1922. Death
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