New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-20


In order TO accomplish such suppression OF indie
pendent lines at minimum of expense to itself
ed the expedient of bogus competition That is to
say instead of Offering such premiums on on IN IN
its own name. Il has often employed a dummy Tor
the purpose. The object obviously is to prevent
he npe ed Who OF the paid such
premiums in Its own name, might naturally demand
the limited areas affected by competition Of rival
lines.
FAILURE TO ACT AS COMMON CARRIERS.
If the Standard OIL Company acted as a common
reasonable charges. the great advantage which it
now derives from its control of pipe lines would be
erai. 10 thus act common carrier. and by
charging pr3hibitory rates when it nominally does
So II gets full advantage OF It's virtual pipe line
The law In West Virginia Pennsylvania Ohio
and Kansas requires pipe lines TO act as common
carriers. Until 1905, however, there was no federal
in interstate business Even, however. in the alb
sence OF such legal requirement, the failure or
at reasonable rates must be Considered an abuse Of
line systems, as there would almost certainly be in
the absence of the unfair methods OF the StandaT4
riers.
As a matter of fact, the Standard Oh Company
transport Oil for others through its pipe lines In
some cases there has been direct refusal to
transport oil for others. In other instances the
Standard has refused to deliver oil at points
desired, has insisted impracticable conditions
me standards pipe lines in the Eastern fields
the pipes TO retain ownership indefinitely (on pay
ment of storage charges). but to get physical pos
session OF an equivalent quantity Of oil again has
been quite different matter. The practice to
storage mas practically meant only that the owner
could choose his time for selling the Stan
GARD This position of the Standard Oil Company
Independent refiners that for many years COMPARE
lively few requests have been made to the company
70 transport oil for other parties The bureau has
however. a record OF several fiat refusals on the
part OF oth the company to perform this service
n , OIL owned by independent refners the de-
sired point or at a point sufficiently their
obviously, this is quite effective as a fiat re-
Iusal TO transport An instance of this sort is re-
ported by the Titusville OIL Works which states
that In 1900 II requested the Standard to deliver
longer had delivering. lines at TtusviIie. Tbere
upon the Titusville OF Works bought certificates
the oil loaded into tank cars at warren Penn the
titusvlile concern paying the freight of course.
from that point TO Its refinery at Titusville In
1901 the Standard refused deliver OIL 10 this con
Ee 9a even t at Warren. claiming that their pipe
ity The Standard offered deliver at Washing
fifty miles distant from Titusvilie the Tftusviiie
on Works could not afford to pay the rail freight
Al the time this action was taken by the Stand
ara that company had pumping station within
three miles of Titusville, and, moreover. had COL
self from which IT undoubtedly could have deliv-
cred the moderate quantity of oil needed by the
Ttusville concern.
REFUSAL TO SELL CRUDE OH.
sti another abuse OF its pipe line facilities by
the Is the far refusal to sell crude oil to
the Standard might sell or decline to sell to CON-
Petitors as It saw 1T When it is re1nem beTed.
monopoly Of pipe line Transportation. refuses to
transport OIL for others and hence has become al
most the sole buyer of crude OIL 1t will be seen that
refussi 10 sell is direct outcome OF the refusal
and closes the only remainns 9Tenue ' by pW6ic
independent refiners generally could get an ade-
eneres BY ra almost inyarably too expe2s i've
90 60 De pTactcable 1t follows, therefore, that the
TO dictate whether or not Independent refners shall
Several instances OF positive refusal of Standard
Eip9 INES 10 sell OIL We're reported TO the bureau
cally every case where It also refused to trans
sired points. The Standard Oil Company It Is
true sells some crude oil TO independent refners
amount Which It would thus a furnish Misty i''''e0 THO
INDEPENDENTS BROUGHT TO TERMS.
Tho most noteworthy OF the restriction OF
the amount sold occurred In the latter part Of 1903
The circumstances in this instance are particularly
significant. A group of about fifteen rehners IN
Western Pennsylvania who had been buying from
the Standard and who had been increasing their
business for some time made plans for strengthen
ing their export trade by forming what Writ
ually joint selling agency. for which the Union
Petroleum Company and the Crew-Levick Com
pany. of Philadelphia, were TO act as agents This
plan instantly aroused the opposition of the stand
agent Informed these Independent concerns that
their supply of crude OH would be reduced 80 per
partly due TO the fact that these independent con-
Germs were growing too much, although IN tustifl-
cation Of the restriction the Standard argued that
the supply OF crude oil was falling off As COM
reduction IN the crude supply. but only on the ex-
press condition that these Independent refners
ing abroad and sell all of their export illuminating
Standard offered to sell these Independents a sup
ply OF crude equivalent to S71a per cent of the
and September OF that Year The indePendent9 re-
Of them could obtain little or no crude from any
of oil TO amount less than the existing capacity
and previous consumption Of these plants, but It
buying any crude oil from outside parties. More
ee o Wef and m I'm f grGg inc
Company, which owned short pipe lines. We're
with respect 10 the sale Of export oil it was pro
vided that the Standard would pay on the basis Of
arbitrarily by the STANDARD. Furthormore, the
f6S this lG sPa9 Of oil
Had the Standard, OIL Company acted as a COM
prevented these independents from obtaining a fun
GpPy of crude I'D 6 all w9a have 9e1 by bESs
could hardly be better illustration Of the power
portation confers upon the possesso P hereo
A59t a o f 6a Of es ta s6ona m @
crude oil from outside concerns. II also abandoned
Of OFF TIER export oil This action was not taken until
the investigation of the bureau had been carried
doubt that the Standard feared that the arrange
ment was so distinctly in restraint of trade as to
Complaints of the failure of pipe lines TO act as
common carriers TO sell crude oil have not been
confined to the Standard OIL Company severa!
interests have made similar complaints against the
pipe lines controlled by the Pure OIL Company al
though of the differences between that
pany and the compliments have been amicably adj
justed. Officers OF the Pure Oh Company say in
regard to these complaints thSs as ii has
failed to transport oil for others or TO sell oil 1t
has been forced into that position by the similar
policy of the Standard. If the Standard would act
common carrier the Independent refners
nected with the Pure OIL Company's system could
get oil from the Standard pipe lines In the
Pure Oil Company had not sufficient capacity to