Albuquerque evening citizen. [volume] (Albuquerque, N.M.) 1905-1907, 1907-01-28
Great Oil Octopus Shown in
True Light by Interstate
Commerce Commission
WITHOUT HONESTY OR
CONSCIENCE IT HAS
Killed Opposition Every Where by
Methods of Procedure the
Most Disreputable.

Washington ID. G., Jan. 2S.-The
Interstate commerce commission has
reported to congress the results of its
investigation. under the Tillman-Gil-
lsspie resolution, concerning the re-
lation of common carriers to the pro-
duction and distribution of Oil.
Among much more of the same kind,
the report says:
The Standard Oil company largely
monopolizes the handling of pc
troleum from the mouth of the well
until it is sold to the retailer. and
sometimes to the consumer, and un-
der ordinary circumstances its mar
gin of profit is very large. Estimates
made in the report show a profit of
refined oil from the Sugar Creek re-
finery at Kansas City of from five to
eight cents per gallon. much
higher profit is indicated for gasoline.
The sale of refined oil from the large
Standard refinery at Whiting is cor
respondingly profitable.
The evidence shows little basis for
the contention that the enormous
dividends of the Standard Oil COM
pany are the legitimate result of its
economies. Except for it's pipe lines,
the Standard has but little legitimate
finer
In discussing the assertion con-
tained in the report that "the ruin of
its competitors has been distinct
part of the policy of the Standard Oil
company" the commission says one
method has been the organization OF
a perfect system of espionage over
the shipments of its competitors, re-
sulting in knowlrdg. 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 il
She Independent oil is sold. 1t ap-
pears that such information is sys-
tematically obtained from railroad
employees. The testimony shows that
the Standard at one time, If It does
not now, devoted a fund to the pur-
pose of obtaining this information
1t has frequently happened, when
the supply of Independent oil in g
particular territory was low and a
shipment was peculiarly necessary,
that the shipment has unaccountabiy
Sone astray. Information also ap-
pears to have been given the Union
Tank line, creature of the Stand
ard, concerning the whereabouts of
its cars, while such inform alton was
not furnished to other owners of tank
cars, and some discrimination in tank
car mileage in favor of the tank line
is shown for one railroad.
The report shows that "at present
every considerable railroad in the
United States is buying of the Galena
OIL company one of the Standard
companies, most of its lubricating and
signal oils, the prices paid for lubri-
eating oil, which is of three grades,
being substantially the same to the
various railroads. The prices OBJ
tanned by the oil company are ex-
travagantly high. Oils of the same
grade could be bought in the open
market for about one-half the Ga
lena company's prices"
The report severely arraigns the
Standards methods of competition,
saying: THE Standard has repeat
edly, after becoming the owner of a
competing company, continued to op-
crate 1t under the old name, carry
ing the idea to the public that the
company was still Independent and
competing with the Standard. Tne
operation of such fake independent
concerns has been one of it's most ef-
tective means of destroying coinpc.i-
ton. The Standard has habitually
reduced the price against its com
petitor in a particular locality while
maintaining its prices at other places
When competition was destroyed it
advanced or restored former prices
The Standard has sold different
grades Of oil at different prices from
the same barrel. 1t has paid en-
ployes of Independent oil companies
Tor information as to the business of
these competitors, and has paid en-
ployes of industrial companies to Sc
cure the adoption of its oil in pref
erence TO that of its competitors. 1t
has followed every barrel ofindepen-
dent oil to destination. It's agents
are instructed to secure customers at
any sacrifice. 1t has tampered with
the oil inspectors in different states.
The competitive methods of the
company in the past have been unfair
and disreputable. Its motto has been
the destruction of competition at any
cost, and this policy has been pur-
-ued without much reference to de-
cency or conscience. and ii is sig
nificant that the larger independent
refiners sell the greater part of their
product in foreign countries. one in
dependent testified that 75 per cent.
Of his product went abroad, and SAID
that he could compete with the Stan
dard in Germany. where its methods
as followed in this country would not
be tolerated, but that he could not
compete with il here"
Nuns Expelled from France.