Los Angeles herald., 1907-08-12
Los ANGELES HERAID MONDAY MORNING. AUGUST Y, 1907

than they actually paid. These figures
cover railroads operating 915 per cent
of the locomotive and car mileage of
the country.
Get Two Millions Too Much
1t is probable that, taking into con-
sideration the total purchases of lubri-
eating oils lin addition to the oils used
on rolling stock large quantities of the
same oils are bought for other pur'
poses) by all railroad companies in
the country under contract with the
Galena, the payments actually made
are something over $2,0O0,0O0 per year
more than the fair market value of
the lubricants. In all the evidence
gathered on this subject there is moth
ing to show any reason why the rail-
roads of the country should pay the
Standard this excess of $2,000,000 per
year except the suggested connection
between these contracts and the dis
tribution of freight traffic by the
Standard Oil company or the possible
weight of financial influence.
The obnoxious character of the Stand
ards price policy and it's methods is
thus made clear from the present re-
port. The Standard has repeatedly
asserted that combination, as Illus
trated by its own history, Is a great
benefit to the public in reducing the
costs and consequently prices. 1t may
readily be that in some industries
combination has had these beneficial
results. 1t is probable that the Stand
ard, by reason of its undoubtedly great
efficiency, could, had it been content
with reasonable profits, have made
prices to consumers lower than would
have been possible for smaller con-
Germs, and thus have maintained its
great proportion of the business by
wholly fair and legitimate means.
The Standard Is, however, a most
conspicuous example of precisely the
opposite-of combination which
maintains a substantial monopoly, not
by superiority of service and by
charging reasonable prices, but by un-
fair methods of destroying competi-
ton; a combination which then uses
the power thus unfairly gained to OPP
press the public through wholly ex-
tortionate prices dt has raised prices
instead of lowering them. 1T has
pocketed all the advantages of Its
economies instead of sharing them
with the public, and has added still
further monopoly profits by charging
morethan smaller and less economical
y concerns, could Sell Tor III the oldnuaru
allowed them the chance.
Some Of the unfair and Illegal means
by which the Standard has been able
to do this have been proved In the re-
ports already published by this bu-
reau, namely, railroad determinations,
wide-reachipg in extend and enormous
in degree; failure to perform the du-
ties ofea common carrier in pipe line
transportation, and unjust methods OF
destroying competition in that bust
ness; and price discrimination of the
most fragrant character. By your d.
rectior, in view of the proceedings OF
the attorney general against the
Standard Oil company, some Of the
more detailed evidence secured by the
bureau regarding price discrimination
is at present withheld from publica-
ton; and the same is true of evidence
regarding other unfair practices, the
most important of which are the
maintenance of bogus independent
companies, espionage over the busl-
ness of competitors, especially by brib-
ing railway employees to disclose their
shipments, and deception as to the
o,oiitx- Of ollie sold