The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1907-01-29
REPORT, UNDER TILLMAN.GlL
LEsPlE RESOLUTION, ATTACKS
STANDARDS METHODS.
USED SECRET RI BATES
To Club independent Dealers Into
Line-Ruin OF Competitors Part
OF Policy Of Great Corpora
ton.

Wmhlngton, Jan. 2S.-Asserting
that the ruin of It's competitors has
been distinct part Of the standard
Oil company in the past, systematic
ally and persistenerly pursued, the
Interstate Commerce Commission sent
to congress report under the Till
man -Gillesp e resolution advising the
rassIge OF legislation 10 curtail the
;ctions Of this company and to place
Independent concerns upon an equal
isis. The Tillman-Gillespie resolu
ton was approved March Z and dealt
with tha relation of common carriers
by rail to the production and distribu-
ion of oil. The report covers the dis
tilbution OF petroleum and its pro
ducts east of the Mississippi river
and, incidentally the Kansas and Tex
a; fields. 1t points ont generally, The
methods employed by The Standard OH
company, and covers much of the
ground in detail which was made pub
lie b. the bureau Of corporations.
mo instance, the report says, "is
found where any railway company has
been in terested in oil lands or in pc
troleum production, and only one in
stance Is shown where officials Of a
railway company were interested In
the production and sale of oil. This
r1lates to certain officials of the Balti-
more and Ohio Southeastern railroad
having owned stock of the Argand
refining company, which was on their
recommendation, afterwards sold 10
the Standard on company, and the
lnbricating contract which the road
transferred TO the Galena OIL company
"a Standard company
"The Standard Oil company largely
onopolizes the handling of petroleum
from the mouth of the well until II IS
S Id to the retailer, and some times
10 the Consumer and under ordinary
circumstances its margin of profit is
very large Estimated profits on re-
fined oil from the Sugar Gre k Rein
cry at Kansas City is from five to
gh tcents per gallon. much higher
profit is indicated for gasoline,
"The evidence shows little bass fC-
the contention that the enormo-s diyi
ends of the Standard Oil company
are the legitimate result of its econo
ylics. Except for its pipe lines, the
Standard has but little legitimate ad
vantage over the Independent refner.
"Pt ssession Cf the pipe lines enables
Controls All Prices.
tie Standard to absolutely control the
urice Of crude petroleum and the
rrice which its competitors in given
locality shall pay 1t can raise the
Jrice in one locality. obtain its own
oil from another. and reverse the pre-
cess when it desires to do so,'
The pipe line system Of the Stand
ard, the report contends is not ma
tural. but rather an artificial advant-
q ge. 1t is argued that the reason why
long pipe lin competing with tn, Sc
Of the STANDARD have not been provid
Cd is found in obstacles in the way of
such undertakings, having been op-I
l,osed by the railroads, whose right Of
way has generally stood as a Chimes
wall againsl all attempts to extend
pipe lines. Ordinarily, it is said. the
standard has not received rebates in
recent years, so far as has bsen dis
covered, but it has nevertheless en-
5oyed secret rates possessing All of the
alenents of illegal rates. and. the ad
vantages 50 obtained over iudepend
ent shippers have been of very great
value to that company.
"A low rate Of 10 cents per 100
pounds upon p rtoleum and its pro
ducts existed fer many years from
Neodesha. Kas.. where the tSandard
operated a refinsry. to Kansas City.
Secured Secret Rebates.
This was for the interest of the
Star ard but when the S andard con
structed it's refinery at Sugar Creek
Kansas City. and connec, ed it by pipe
line with the Kansas oil wells. the ra
rate was advanced from 10 to II cents
per 100 pounds. This and many other
cases called to the commit siOns at
tention shows that the rate was not
charged until il came TO be for the
interest of the Standard that it should
ls changed. and il was changed as
that company would naturally desire
"In discussing the assertion contain
"a in the report that the ruin Of its
competitors has been distinct past OF
the policy Of the tSandard oil com
pany." the commission says that one
method has been the organization OF
a perfect system Of espionage over
the shipments Of its competitors. re-
eulting in knowledge as to the desu-
nation Of every car Of oil leaving the
refinery f an indep ndent. The
Standard age-t al the destination -ays