The Roswell daily record. [volume] (Roswell, N.M.) 1903-current, 1907-05-20

control over the industry is secured
by the Standard through its market
ing methods. 1t uses very generally
the bulk system of delivery to retail
dealers by tank-wagols-a cheaper,
safer, and far more convenient method
of delivery than by barrels. This not
only reduces the cost of marketing
greatly, but also has eliminated large
" the jobber from the business. Deal
ing thus directly with the retailer, the
Standard is enabled to arrange such
local price differences as it may de-
sire for the purpose of destroying To-
cal competition, without disturbing
its prices over any large section of its
trade. The tank-wagon system of the
| Standard is as complete as its system
in other branches. The Bureau receiv
ed returns on this subject from over
$500 retail dealers throughout the
country. OF the towns in which tank
wagon deliveries were reported, such
deliveries were made by the Standard
in over 81 e cent.
/ 1 desire to call particular attention
to the facts as to tine cost of pipeline
transportation aid TO the striking com
parison mad between the estimated
cost of the Standard pipeline trans
p~ortation and the rates actually NAM
ed therefor by that company. These
rates are from three to six times as
great as they should be, taking into
consideration all the costs of opera
ton. maintenance. depreciation, and
profit on investment.
| desire further to call our atten-
ton to the substantial failure of the
Standard Pipe lines to comply with
the common carrier requirements of
the act of June %, 1906, the so-called
60 I--.g uv,sJo 49, 90 tho Ston
dard's trunk lines do an interstate bu-
siness and should therefore, under
that law, file tariffs or rates, four of
these interstate lines-the Prairie Oil
and Gas Company, which furnishes
the Only outlet of the d-Contfnent
field; the Ohio Oil Company, which
furnishes the only outlet from the
Illinois field; the New York Transit
Company, and the Underwater Pipe
Company-have not filed any such tar
ifs at all, refusing entirely to accept
or deliver oil owned by others. 9th
err Standard lines, while filing certain
rates, lave done so in such a amer
as to reduce their apparent compli-
ance to an absurdity-by filing rates
only to perfectly Insignificant points
where no one desires to snip oil, or to
points where the Standard Oil Com
pany only has refineries for exam
pie, naming no rates to New York
Harbor), by placing impossible ~restric
tons upon the acceptance of ship
ments (requiring single shipments to
be at least $4,000 or v 100000 bar
rels in amount), and by fixing even
the rates so filed at a point wholly
excessive and unreasonable in o
when compared with the cost of the
service. The Standard, having pre-
vented the rise of independent pipe
lines, having destroyed or absorbed
the few that were successfully con-
structed against its opposition, having
then refused the use of it's own lines
to producers n refiners who had no
other outlet, now plainly intends to
nullify, so far as its own lines are
concerned, the common carrier re-
ouirements of the rate law This con
dition should receive careful atten-
ton. 1t is clear that, especially in
view of the action of the Standard
pipe lines respecting the new and in
creasingly important MidColtinent
and Illinois fields. immediate consid-
GRAFTON should be given to the enforce
ment of the pipe line provisions of
that law. 1t should be further pointed
out that in certain Of the States which !
would naturally be crossed by indie
pendent pipe lines no law now exists
giving the right of eminent domain to
pipeline companies.
In brief the history of the present
operation of these Standard interests
shows throughout the past thirty-fve
years a substantial monopolization of
the petroleum industry OF the country
a deliberate destruction of compet-
ton. and a consequent control of that
industry by less than q dozen men,.
who have reaped enormous profits
therefrom. The commercial eficien-i
cy Of the Standard. while ver great,