Los Angeles herald., 1907-01-29
STANDARD OIL
IS ARRA|CNED
REPORT SCORES RocKEFeL-
LER MONOPOLY
Interstate Commerce Commission sug-
eests That Government BE AL
lowed to Fix Rates and
Transportation
tContinued from Page one.)

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of the policy of the Standard oil COM
pany," the commission says one meth
cd has been the organization of per-
feet system of espionage over the ship
ments of it's competitors, resulting in
knowledge as to the destination 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.
1T does not appear" continues the
report, that the railroad companies
have directed the furnishing of this in
formation or that the prNctice mas
been sanctioned by superior officers OF
the road. but it does appear that such
information is systematically obtained
from railroad employees, The testimony
shows that the Standard at one time,
IL it does not now, developed fund
for the purpose of obtaining this in
formation. 1t frequently happened
when the supply of independent oil In
particular territory was low and
shipment was particularly necessary,
that the shipment has unaccountaoly
gone astray. Information also ap-
pears to have been given the Union
tank line, a creature of the standard
concerning the whereabouts of Its cars
while such information was not fur
nished to other owners of tank cars,
and some discrimination in tank car
mileage in favor of the tank line Is
shown for one railroad.
Uses Unfair Methods
It is asserted that 1t is the practice
of the Standard whenever a competitor
erects a storage tank to which the OIL
is transferred from the tank car to re-
duce the price of oil in that locallty
to such a point as to make the business
unavoidable to such competitor, whlle
prices were maintained in other locan-
ties. There was much complaint tnat
the railroads allowed the Standard 10
erect it's tanks at convenient points on
the right of way and declined TO accora
this privilege to independent rehners:
The commission says that 1t is satisfied
that such discrimination has oeen very
generally practiced in the past.
The report shows that lat present
every considerable railroad in the
United States is buying of the Gaiena
Oil compeny, one of the Standard COM
panies most of it's lubricating and sig
nal oils, the prices paid for lubrlcatlns
oil, which is of their grades, being SUB
stantially the same to the various rail-
roads. The contracts generally con-
tain a guaranty to the road that the
cost of fabrication shall not exceed a
certain sum per mile or engine mile,
and provide for oil inspectors appointed
by the oil company to supervise the use
of oil. The Galena company is rarely
called upon to pay anything under the
guaranty and the prices obtained by
the oil company are eXtravagantly hlgn.
Oil of the same grade could be bought
in the open market for about one-half
the Galena company's prices.
The report severely arraigns the
Standards methods or competition,
saying:
Tries to Fool the Public
"The Standard has repeatedly, after
becoming the owner Of competing
company, continued to operate it un-
der the old name, carrying the idea to
the public that the company was still
independent and competing with the
Standard. 1t has used such purchased
or Independently organized companies
to kill off competitors by such COM
panies reducing prices. The operation
of such fake independent concerns has
been one of it's most effective means or
destroying competition. The Standard
has habitually reduced the price
while maintaining it's prices at
other places. When competition was
destroyed 1t advanced or restored
former prices. The Standard has sold
different grades of oil at different
prices from the same barrel. 1t has
paid employees of independent oil COM
panies for information as to the bust
ness of these competitors and has paid
employees of industrial companies to
nf Re oil in prnfar-
ence to that of it's competitors. 1t has
followed every barrel of independent
oil to it's destination. Its agencies are
instructed to secure customers at any
sacrifice. 1t has tampered with the oil
inspectors in different states. The laws
of several states concerning the inspec-
ton of oil are singularly defective and
this has been turned to profit by the
Standard.
"The committees only knowledge OF
the competitive method of the Standard
Oil company is obtained from evidence
taken under oath in this investigation
The Standard was given permission &c
explain or rebut the facts.
Methods Disreputable
"This, if true, demonstrates that the
competitive methods of the company II
the past have been unfair and dis
struction of competition at any cost
and this policy has been pursued without
much reference to decency or con-
science, and it is significant that the
larger independent refineries sell the
greater part of their product in foreign
countries. One Independent testified
that rs per cent of his product went
abroad, and said that he could compete
with the Standard in Germany, where
its methods as followed in this country
would not be tolerated, but that h'
could not compete with it here"
On the question of remedies the re-
port says:
More than anything else the pipe
line has contributed to the STANDARD
Oil monopoly and it's supremacy mus
continue until its rival enjoys the sanl'
transportation facilities. The amended
act to regulate commerce makes th'
existing pipe lines common carriers sub
ject to that act, and the power to pre-
scribe Just and reasonable rates, resu
lation and practices after complaint anC
hearing is conferred upon the commits
sion But the pipe nne tariffs fileC
l..