The independent., 1907-01-31
RULE OR RUIN ITS POLICY
COMMERCE. COMMISSION SENDS A
REPORT TO CONGRESS-.
Explains Methods by Which the
Trust Has Built Up and Perpetu-
ated It's MonOpoly-KiIIed
Off Competitors.

WASHINGTON, Jan. 31--The inter-
state commerce commission sent to
congress a report Of the Investigations
made by 1t under the Tillman- -Gilles-
pie resolution concerning the relations
OF common carriers by rail to the pro-
duction and distribution Of oil. The
report covers the distribution of petro-
leum and its products east of the Mis-
s1sslppi 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 perpetuatel it's monopoly"
1t Is asserted that "the ruin of its
competitors has been a distinct part of
the policy of the Standard Oil company
In the past, Systematically and per-
sistently pursued"
mo instance" the report says. "is
found where any railway company has
been interested in oil lands or in petro-
leum production, and only one instance
is shown where officials of a railway
company were interested in the pro-
duction and sale Of OIL This relates
to certain officials OF the Baltimore &
Ohio Southwestern railroad having
owned stock of the Argand Refining
company, which was, on their recon-
mendation, afterwards sold to the
Standard Oil company. and the lubri-
eating contract which the road trans
ferred to the Galena Oil company a
Standard company.
Margin Of Profit Large.
"The Standard Oil company largely
more polizes the handling of petroleum
from the mouth of the we'll until 1t is
sold to the retailer, and sometimes to
the consumer, and under ordinary cir
cumstances it's margin of profit is very
large. Estimates made In the report
show a profit on refined oil from the
Sugar Creek refinery at Kansas City
Of from 5 to 8 cents per gallon.
much higher profit Is indicated for gas
oline. The sale of refined oil from the
large Standard refinery at Whiting,
Is correspondingly profitable.
"The evidence shows little basis for
the contention that the enormous divi-
dends Of the Standard Oil company arc
the legitimate result Of it's economies.
Except for 1t pipe lines, the Standard
has but little legitimate advantage over
the independent ref1ner.
"The Standard buys advertising
space In many newspapers which 1t
fills. not with advertisements, but with
| reading matter prepared by agents kept
for that purpose and paid for at ad-
vertising rates, as ordinary news. The
assumption Is that this literature fur
nishes many of the ideas touching the
great benefits conferred upon the pub
lie by the Standard Oil company.
Possession of the pipe lines enables
the Standard absolutely to control the
price Of crude petroleum and the price
which its competitors in given To-
cality shall pay. It can raise the price
in one locality and obtain its oil from
another and reserve the process when
| 1t desires to do So Whoever controls
the avenues of transportation of the
raw material or of the refined product
can speedily drive his competitors out
OF existence, and the production and
distribution of petroleum Is no excep-
| tion to the rule"
An Artificial Advantage.
| The pipe line system of the Stand
ard. the report contends, Is not n nat
ural, but rather an artificial advan-
tage II Is argued that the reason why
/ long pipe lines competing with those
OF the Standard have not been provid-
ed is found In obstacles In the way OF
such undertakings having been OPP
posed by the railroads, whose right
of-way has generally stood as a Chi
nese wall against all attempts 10 ex-
! h'NA fAFF AAANM* ~ - odtNt
the Standard has not received rebates
| in recent years, so far as has been dis
covered, but II has nevertheless enjoyed
secret rates possessing all OF the Gle
ments of illegal rates. and the advan-
taEcs so obtained over ind pendent
| shippers have been OF very great value
20 that company, Numerous Instances
of discrimination In favor nf the stand
ard resulting from tho published rail-
way rates were found, says the report.
| In this connection tho following In an
1 instance given
~ low rate ~ 10 cents per 100
pounds upon petroleum and is prod
ucts existed for many years from Neo.
dosha, kus., whore the standard np-
Grated a refinery. 20 Kansas city This