The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1907-02-02
OIL TRUST METHODS BASIS FOR TREATY
INV STANDARD COMPANY SUP.
PRESSES COMPETITION.

cation of Rockefeller Organi-
zation to Congress--Eftective
Means forStifling Competition.
Washington, Jan. 3O.-The inter
toto commerce commission has sent
70 congress report of the investiga-
tion made by it under the Tillman-
c;Ilespie resolution concerning the re-
lotions of common carriers by rail to
tbo PRODUCTION and distribution of oil.
The report covers the distribution of
netroleum and its products east of the
mississippi river, and, incidentally,
the Kansas and Texas fields. The re-
mort points out generally the methods
nv which the Standard Oil company
"bas built up and perpetuated it's mo-
ronoly.' 1t is asserted that "the ruin
of its competitors has been a distinct
mart of the policy of the Standard Oil
company in the past, systematically
and persistently pursued"
"No instance" the report says, is
found where any railway company has
been interested in oil lands or in Pc
troleum pronduction, and only one in
stance is shown where officials of a
railway company were interested in
the production and sale of oil. This
relates to certain officials of the Balti-
more & Ohio Southwestern railroadt
having owned stock in the Argand Re-
fning Company, which was on their
recommendation afterwards sold to
the Standard Oil company, and the
lubricating contract of the road was
transferred to the Galena Oil compa-
ny, Standard Oil concern.
Extent of Monopoly
1.-THE Standard Oil Company largely
monopolizes the handling of petroleum
from the mouth of the we'll until it is
sold to the retailer and sometimes to
the consumer, and under ordinary cir
cumstances it's margin of profit is very
large. Estimates show a profit on re-
fined oil from the Sugar Greek refinery
at Kansas City of from to cents a
gallon. A much higher profit is indi-
Gated for gasoline. 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
are the legitimate result of its econo-
mics. Except for its pipe lines, the
Standard has but little Legitimate ad-
vantage over the independent refiner.
"The Standard Oil company buys
advertising space in many newspa-
pers, which it fills, not with advertise
ments, but with reading matter pre-
pared 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
conferred upon the public by the
Standard Oil company.
Value of Pipe Lines
Possession Of the pipe lines enables
the Standard absolutely to control the
price of crude petroleum and the price
which its competitors in given local
ity shall pay. It can raise the price
in one locality and obtain it's own oil
from another, and reverse the process
when it desires to do so. Whoever
controls the avenues Of transportation
OF the raw material or of the refined
product can speedily drive his COM
petitors out of existence, and the pro-
duction and distribution of petroleum
Is no exception to the rule"
In discussing the assertion contained
In the report that ''the ruin of it's
competitors has been a distinct part
OF the policy of the Standard Oil COM
pany," the commission says one meth
Cd has been the organization of q
perfect system of espionage over the
shipments of its competitors, result
ing In knowledge as to destination of
every car of oil leaving the refinery
OF an independent. The Standard
agent at the destination, says the re-
port. Is held responsible If the indie
pendent oil is sold.
1t does Lot appear" continues the
report. that the railroad companies
nave directed the furnishing of this
,nlormation or that the practice has
oeen sanctioned by the superior off,
oers OF the roads, but it does appear
,nat such information is systematical-
ootalned from railroad employees.
Methods of Trust Arraigned
IL Is asserted that it is the practice
VI the Standard, whenever a competi-
VT erects storage tank to which the
vi Is conferred from the tank car, to
.euuce the price of oil in that locality
" such point as to make the bust
I.ss Improbable to such competitor,
"hiie prices were maintained in other
Qualities. There was much COM
o. S.alnt that the railroads allowed the
H; " to erect it's tanks at conven-
InS points on the right of way and
OWNED ee to accord this privilege to in.
pendent refners. The commission
a!S that it is satisfied that such dis
tbo ANIMATION has been very general in
10 Make Denatured Alcohol