The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-05-20

ITS MONOPOLY
History and Operation Of Com.

the Standard OIL interests shows
throughout the past thirty-flve years
substantial monopolization of the
petroleum industry of the country, a
deliberate destruction Of competition.
and q consequent control OF that indus
try by less than q dozen men, VINO
have reaped enormous profita- there
from" largely through abuse Of trans
portation facilities, is charged IN re-
port Just submitted to President
Roosevelt by Commissioners Of Corpo-
rations Herbert Knox Smith Part l.
of the report was made public to-day
and other parts will follow. Certain
Information acquired Is withheld Tor
the present. In accordance with In
structions of the President, who feels
that their publication might Interfere
with the prosecution Of the govern
ment's suits pending against the
Standard OIL Company and It's subsidi.
nry companies.
The report contains the net results
pf study Of the petroleum business
during the year 1904 1t is the first
official statement of the operations and
methods OF the Standard OH Company
by which. the report states, thrfNlgn
scandalous railway determinations and
other unlawful devices, they have Sc
cured and maintained an exclusive
In Complete Control
1t Is stated that In 1904 the Standard
and affiliated concerns "refinea over
81 per cent. of the crude oil run
through refneries: produced more then
sc per cent. of the country's total ou.-
Put Of Illuminating oil: maintained a
similar proportion OF the export trade
in illuminating OIL and transported
through pipe lines nearly nine-tenths
of the crude oil of the older fields and
% per ccnt.sfofsthe crude oil OF the mid
continent tield.'s
The report points out that the mo-
nopoly enjoyed by the company does
not rest in the ownership Of the source
of the oil supply, which amounts only
To about one-sixth OF the total but
''that It's growth and present power
rest primarily on the control Of trans
portation facilities"
Secret Rebate System.
After the railroad rebate was abar-
Jloned, the company. the report con-
tlnues, was able to establish a system
OF secret or open determinations OF
rates in its favor throughout practi-
cally the entire country. Having es-
tablshed its monopoly OF she pipe line
business. the company substantially re.
fuses to act as a common carrier.
1t is shown that the Standard con.
trolls not only the wholesale, but also
the retail trade in oil.
In conclusion, the report says: 1T I.
apparent that the dominating position
OF the Standard Oil Company in the OF
industry has largely been secured b,
the abuse of transportation facilities
first, by fragrant DETERMINATIONS OBJ
tanned from railroads.: second by a re
fusnl to operate It's pipe line system
as to extend to independent Interest,"
the benefits to which they are bptl
morally and legally entitled, while a
the same time the Standard has pre-
vented such independent interests from
constructing lines Of their own"
Controlled All Sales.
Tho report says that the standar,
OH and affiliated concerns In 1904 SC
cured over IS per cent OF the sale
OF Illuminating oil to retail dealer
throuGhout the country, and obtaine,
IN certain large sections as high a
~ per cent Of such sales. 1t also con
trollcd practically similar proportion
of the production and marketing q
Easolene and oil. The Standards onl
competitors In the refining busines
are about seycnty-nve small refineric.
whose total consumption of crude o]
is less than that OF single ono q
the Standard. tho Bayonne refinor,
RI
ards total consumption.
Over fifteen of these competitors ar
dependent for their supply OF crud
oil upon the Standard pipe lines, an
are SO restricted by this dependenc
as to be capable of little effective CON
petition or growth.
In the pipe limo business of the on 81
ern and mid continent fields 1t has u
TO the present but one competitor :
any Significance, the Pure Oil Con
pnny, and that Its competitors ptp
line business Is not more than ohe
twentieth of that of the Standard.
began with ROclefcllcr.
Tho report points out that through
out the entire history of this concerl
from 1867 to the present, there hn
been absolute continuity OF control b
few individuals. Thery has bee
apparent throughout their operation
definite. persistent policy of excl,
sive domination. Starting with I'll
g5 partnership of Rockefeller Andrew
and Flagler formed in 1877. tho repo
says that in 1889 the capitalization
the trust was S70,000,000, appralst
valuation $55,0Oo,00O. and that nil
mon acting as trustees, owned togetl
or ut that time $46.OOo,O00 out Of $40
100000 4of the trust certificates issue
Tho nine men were John d. Rock
Pratt, o. H. Payne, William Rock
leller. j. A. Bostwiclt, w. G. Garde
John d. ArchbOd and Benjamin Bre,
ster. The outstanding stock OF til
company Is now about $9s,OOO,OOO
Besides business of transportati
facilities. additional means of domln
tion have been local price discrimIn
ntlon and other unfair competiti
methods in the sale Of products.
woll as in tho elimination Of the 10