The Mena weekly star., 1907-01-31
REPORT RAPS STANDARD
Interstate Commerce Commission Sends to Congress Result of Oil
 Investigation.
TIE COMPANIES METHODS DENOUNCED
Ruination of Competitors a Distinct Part of Policy of the Standard in the Past.-Profit on Refined Oil From Five to Eight Gents a Gallon


 Washington, Jan. 29-The Inter- state Commerce commission has sent to congress a report of the investiga- tions made by it under the Tillman- Gillespie resolution concerning the relations of common carriers by rail to the production and distribution Of oil The report covers the distribution of petroleum and it's products east of the Mississippi river, and incident ally, the Kansas and Texas fields. The report points out generally the meth ods by which the Standard Oil com pany has built up and perpetuated Its monopoly It is asserted that the ruin of it's competitors has been distinct part of the policy of tue Standard Oil company in the past, systematically and persstenly pur- sued'
 No instance" the report says, Is found where any rail company has been interested in oil lands or in pe- troleum production. and only one in- stance is shown where officials of a railway company were interested in the production and sale of oil.
 "The Standard oil company largely monopolzes the handling of petro- leum from the mouth of the we'll until it Is sold to the retailer, and some times to the consumer, and under or dinary circumstances its margin of profit is very large Estimates made in the report show profit on refined oil from the Sugar Creek refinery at Kansas City from five to eight cents per gallon. A much higher profit is indicated for gasoline. The sale of re- fined oil from the large Standard refinery at Whiting, Ind, is cores pondingly profitable.
 "The evidence shows little basis for the contention that the enormous | dividends of the Standard oil com | pany are the legitimate result of its economies Except for it's pipe lines, | the Standard has but little legitimate advantage over the independent re- finer.
 The Standard buys advertising space in many newspapers which IL | 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 con ferred upon the public by the Stand ard Oil company.
 Possession of the pipe lines en- ahles the Standard absolutely to con trol the price of crude petroleum and the price which its competitors In given locality shall pay" | On the question of remedies thes report says: More than anything else the pipe line has contributed to | the Standard oil monopoly, and its supremacy must continue until it's | rivals enjoy the same transportation facilities. The amended act to regu- | late commerce makes the existing | pipe lines common carriers subject to that act and the power to pre- scribe just and reasonable rates, reg ulations and practices. after complaint and hearing, is conferred upon the | commission But the pipe line tar | ifs filed with the commission are alleged to be of no actual advantage to the independent operators. The commission only can act upon these schedules after complaint has been made challenging specific rates, reg nlations, or practices Some com plaints are now pending. How far the amended act will prove adequate 70 the correction of such injustices as now exists in respect to this traf- fife remains to be seen.
 since in the past petroleum rates have not always been established to promote. but often to check traffic, and the tariffs are more or less per- heated with determinations i'll favor of the Standard Oil company, having been built up during a series of years in that view, it may be that this dis elimination will never be eliminated bv any process of complaint against n specific rate or practice Judging by past discriminatlons as to this trai- fife may arise more frequently than those now existing can be routed out by that method As to no other im- portant traffic is there an approach to the monopoly of the Standard oil in that of oil. Under these conditions it may become necessary to the up roofing of established wrongs and the preventing of others that the gov ernrnent shall fix in the first instancN the rates and regulations for the transportation of this traffic. This method has been adopted by the leg islature of one state. It probably will be found necessary to disassociate in the case of oil. as in that of other commodities, the function of trans portation from that of production and distribution. What other remedies in. addition to those already provided | may be necessary to prescribe gan be better determined in the near fu' ture by the results of experience in administering the present law.