The San Francisco call., 1907-01-29

continued from Page i, column =.
was advanced from 10 cents to II cents per 100
pounds
While the railways insist that this was not
done at the instance of the Standard, the sig
nihcant fact remains in this and many olher
cases called to the commission attention tnal
the rate was not changed until 1t came 70 pe 70
the interest of the Standard that IL snonio De
changed, and ii was changed as that company
naturally would desire
The ruin of its competftors has been a distinct
part of the policy of the Standard OH company.
one method has been the organization OF per- :
It's competitors, resulting in knowledge as 70
the destination OF every car OF OIL leaving tne
refinery OF an independent The standard agent
at the destination is held responsible II the in
dependent oil is sold.
HAS SYSTEM OF ESPIONAGE
1t does not appear that the railroad companies
nave directed the furnishing OF this lnIqrmation @
or that the practice has been sanctioned Dy supe-
ror officers of the roads, but it does appear that
such Information is systematically obtained from ON
railway employees. The testimony shows that the
standard at one time, If 1t does not now, deyei-
oped fund for the purpose OF obtaining thls
Inlormatlon. IT frequently happens, Wnsnfe ~; sle
supply OF independent oil in particular terri
tory is low and shipment is peculiarly neces-
ssry that the shipment unaccountaDiy goes
Information also appears TO have been given
the Union Tankline. a creature of the STANDARD.
concerning the whereabouts of its cars, while
such Information not furnished to other own
ers OF tankcars. Some discrimination in tankcar
one railroad.
1t is the practice of the Standard whenever a
competitor erects storage tank to which the
oil Is transferred from the tsnkcar, to reduce
the price Of oil in that locality to such a point
as to make the business Improbable to such
competitors, while prices were maintained in
other localities There was much complaint
that the railroads allowed the Standard to erect
Its tanks at convenient points on the right OF
way and declined TO accord this privilege 10 IN
dependent refners. Such discrimination has been
generally practiced in the past
RAILROADS ALSO SUFFER
At present every considerable railroad in the
Company, one of the Standard companies, most
Of its lubrcating and signal oils the prices paid
Tor luoricating oil, which Is of three grades, be
ING SUBSTANTIALLY the same to the various roads.
The contracts generally contain guaranty to
the road that the cost of fabrication shall not
exceed certain sum per mile or engine mile,
and provide for OIL inspectors appointed by the
oil company to supervise the use Of the oil. The
Gaiena Company is rarely called upon TO pay
anything under the guaranty and the prices OBJ
tained by the oil company are extraYagantly
high. Oils Of the same grade could be bought in
the open market for about one-half the Galena
Company's prices.
The report severely arraigns the
Standards methods of competition, say
ing:
The Standard has repeatedly. after becoming
the owner of competing company. continued
20 operate 1t under the old name carrying the
ldea TO the public that the company was still
Independent and competing with the Standard
organized companies to kill OF fcompetition by
reducing prices. The operation of such fake
Independent concerns has been one of its most
effective means of destroying competition.