Kingsbury County independent. (DeSmet, Kingsbury County, S.D.) 1894-1929, 1907-02-01
OIL TRUST STEALS
FACTS, Ruins RIVALS,
SAYS COMMISSION
Interstate Commerce Body
Tells Congress Perpetual Mo-
nopoly Is Created.
RAILROADS OUT OF 1T
Companies and Officials, as Such, Are
Declared Not interested in Oil
Lands-Remedies for the
Conditions Suggested.
RAILROADS OUT OF IT

~ 49, N@'N'
f~erstate Commerce commission sent to
a report of the Investigations
made by it under the Tillman-Gillespie
resolution concerning the relations OF
common carriers by rail to the pro-
duction and distribution of oil. The re-
port covers the distribution of petrol
cum and its products east of the Mis-
sissippi river, and, incidentally, the
Kansas and Texas fields. The report
points out generally the methods by
which the Standard Oil company has
built up n perpetuated its monopoly"
1T is asserted that 1.-The ruin of it's
competitors has been a distinct part of
she policy of the Standard Oil company
In the past, systematically and persis-
tently pursued"
mo instance" the report says, lis
found where any railway company has
been interested in oil lands or in petrol
cum production, and only one instance
Is shown where officials of a railway
company were interested in the pro-
auction and sale of oil. This relates to
certain officials of the Baltimore and
Ohio Southwestern railroad having
owned stock of the Argand Refining
Sompany. which was on their recon-
mendation afterwards sold to the
Standard Oil company and the lubricat-
ing contract which the road transferred
TO the Galena Oil a Stand
ard
The Standard Oil mpa largely
n~onopOlizeS the handling Of petroleum
from the mouth of the we'll until it is
sold to the retailer, and sometimes to
She consumer, and under ordinary cir
CUmstances it 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
pf from > TO cents per gallon. A much
higher profit is indicated for gasoline.
The sale Of refined oil from the large
Standard refinery at Whiting is CORE
Jp~ondingly profitable.
Little Legitimate ADVANTAGE.
THE evidence shows little basis for
the contention hat the enormous divi-
Sends of the Standard Oil company are
The legitimate result of its economics.
Except for its pipe lines. the Standard
Aas but little Legitimate advantage over
The Independent reliner.
The Standard buys advertising space
IN many newspapers which it fills, not
with advertisements, but with reading
matter prepared by agents kept for
that purpose. and paid for at advertising
rates, as ordinary news. The assump-
ton is that this literature furnishes
0lany Of the ideas touching the great
benefits conferred upon the public by
the Standard Oil company.
Possession of the pipe lines enables
she Standard absolutely to control the
price of crude petroleum and the price
which its competitors in a given To-
cality shall pay. 1t 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 con-
srols the avenues of transportation of
the raw material or of the refined pro-
duct can speedily drive his competitors
out Of existence, n the production
and distribution of petroleum is no ex-
ception to the rule"
Enjoyed Secret Rates.
TIL pipe line system of the Standard,
the report contends, is not a natural,
but rather an artificial advantage. 1t
IS argued that the reason why long
pipe lines competing with those of
the Standard have not boon provided
Is found liz obstacles in the way of such
undertakings, having been opposed by
she railroads, whose right-of-way has
generally stood as a Chinese wall
against all attempts to extend pipe
lines. Ordinarily, it is said, the Stand
ard has not received rebates in recent
years, so far as has been discovered,
but it has nevertheless enjoyed secret
rates, possessing all the elements of
Illegal rates, and the advantages so OBJ
kained over independent shippers nave
Secn of very great value to that COM
pany. Numerous instances OF discrim-
station in favor of the Standard re-
sulting from the published railway
Yates were found, says the report.
In discussion the assertion confined
In the report that the ruin of it's COM
p~etitors has been q distinct part of the
policy of the Standard Oil company"
the commission says one method has
been the organization of a perfect sys-
tenn OF espionage over the shipments
of its. competitors, resulting in knowl-
edge as to the destination Of every car
Of oil leaving the refinery of an indie
pendent. The Standard agent at the
destination, says the report, is held re-
ercnsible if the independent oil is sold.
ut does not appear says the re-
port. that the railroad companies have
directed the furnishing of this informa-
tion, or that the practice has been sane
toned by superior officials of the roads,
but it does appear that such informa-
ton is systematically obtained from
railroad employees
Killing by Price Reduction.
IT is asserted that 1t is the practice
of the Standard, whenever a competitor
erects a storage tank to which the oil
Is transferred from the tank car, to
reduce the price of oil in that locality
to such a point as TO make the business
Improbable TO such competitor, while
prices were maintained in other local
tues. IueIe was lluCH complaint tfldt
the railroads allowed the Standard to
erect it's tanks at convenient points on
the right-of-way and declined to accord
this privilege to independent refners.
The commission says it is satisfied that
such discrimination has been very gem
orally practiced in the past.
The report shows that Fat present
every considerable railroad in the
United States is buying from the Ga
lena Oil company, one of the Standard
companies, most Of it's lubricating and
signal oils. the prices paid FOR lubri-
eating oil, which Is of these grades, be-
ing substantially the same TO the va
vious roads.
Methods Severely Arrai9ned.
The report severely arraigns the
Standards methods of competition,
saying:
THE Standard has repeatedly. after
becoming tho owner Of a competing,
company continued to operate ii under
the old name. carrying the idea to the
public that the company was still inde-
pendent and competing with the stand
ard. IL has used such purchased CT
independently organized companies
to XII lor competitors by such COM