Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1907-01-31


terstate commerce commission sent
to congress yesterday 4 report made
under the Tillman-Gillespie resolu.
ton of March last concerning the
relations of common carriers by rail
to the distribution of petroleum and
its products. The report points out
the methods by which the Standard
Oil company has built up and per
petuated its monopoly and the rela-
tons of transportation agencies to
that 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 persistently pur.
sued"
The Standard Oil company largely
mcnopolizes the handling of petrol
cum from the mouth of the well I'M
til it is sold to the retailer and some
times to the consumer, and under
ordinary circumstances its 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 five to eight
cents per gallon A much higher profit
is indicated for gasoline.
Upon the question of the advan-
tages of the possession of the means
Of transportation, these being princi
cally the pipe lines, the report de-
clare that the Standard absolutely
hn Nrin ~ 10
and the price which it's competitors
in q given localities shall pay. 1t
can raise the price in one locality and
obtain its 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 competitors out of existence
and the production and distribution
of petroleum is no exception to the
rule.
OF other advantages of transporta.
ton the report says that The Standard
has not received rebates in recent
years, so far as has been discovered,
but 1t has enjoyed secret rates pos
sessing all of the elements of Illegal
rates. and the advantages so obtained
over Independent shippers have been
of very great value to that company.
Numerous instances of discrimination
in favor of the STANDARD resulting
from the published railway rates were
found says the report. In this con-
nection the following is an instance
given by the commission:
A low rate of 10 cents per 100
pounds upon petroleum and its prod
ucts existed for many years from
Neodosha, Kans, where the Standard
operated a refinery, to Kansas City,
This was for the interest of the
Standard; but when the Standard con
structed its refinery at Sugar Creek,
Kansas City, and connected it by pipe
line with the Kansas oil wells, the
rail rate was advanced from 10 to II
cents per 100 pounds. While the
railways insist that this was not done
at the instance of the Standard the
significant fact remains in this and
many other cases called to the COM
missions attention that the rate was
not changed until ii came to be for
the interest of the Standard that it
should be changed, and it was also
changed as that company would
naturally desire"
II discussing the assertion contain.
ed in the report that the ruin of its
competitors has been a distinct part
of the policy of the Standard Oil com
pany" the commission says that one
method has been the organization of
perfect system of espionage over
the shipments of its competitors, re.
sulting in knowledge as to the desti-
nation Of every car of oil leaving the
refinery of an Independent The
Standard agent at the destination
says the report, is held responsible
If the Independent oil is sold.
The report discloses that the bust
ness ethics of the company are basely
dishonorable and upon this point
says: THE Standard has repeatedly,
after becoming the owner of com.
peting company continued to operate
it under the old name carrying the
idea to the public that the company
was still independent and competing
with the Standard. 1t has used such
purchased or independently organ.
lied companies to kill of competitors
by such companies reducing prices.
The operation of such fake independ.
ent concerns has been one Of its most
effective means OF destroying CON.
petition. The Standard has habitu.
ally reduced the price against it's
competitor in a particular locality
while maintaining its prices at other
places When competition was de.
stroyed it advanced or restored for
mer prices. The Standard has sold
different grades Of oil at different
prices from the same barrel. II has