The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-01-28

. The contention that the enormous wv
dends OF the Standard Oh Company are
b The legitimate result of its economies,
Except for its pipelines. the Standard
has but little legitimate advantage over
fhe independent rehneFs- At the basis
OF the monopoly rests the pipe line.
Advantage of Standard.
''phe STANDARD may today pump oil
from q well in Indian Territory TO its
refinery at Jersey City. The cost OF
piping a barrel OF oil from the Kansas
Held 20 the Atlantic seaboard would not
be much, II any, above 80 cents. The
independent refner Is located usually
near the source OF the crude supply, but
fthe STANDARD locates its reIineries near
tbs great centers or distribution. The
independent refiner in interior Kansas
finds Il difficult TO dispose OF his resid-
dunn. such as fuel oil. because the
value; but the Standard has at the doors
iOf its refinery in Kansas City a market
lat a favorable price for a large part of
his oy-product. and this Is OF itself an
Possession OF the pipelines enables
THE Standard absolutely TO control the
price OF crude petroleum ana the price
which its competitors In a given locality
fshnQ pay II can raise the price IN one
Locality and obtain its own oil from
smother. and reverse the process when II
idesires 70 do so.
THE pipeline system of .he Standard
is not natural, but rather an artificial
advantage The reason why lone pipe
lines competing with those Of the Stand
ard have not been provided Is found Ia
obstacles thrown I'm the way OF such
undertakings, having been opposed by
the railways, whose right OF way has
generally stood as "a Chinese wall
against all attempts 10 extend pipe
lines. However, In cases brought 10 the
attention OF the commission, every ra-
Cility has been extended by the railways
10 the Standard for the construction OF
pipe lines.
Gets Secret Low Rates.
While the Standard has not received
rebates, il has nevertheless enjoyed Sc
.Cret rates possessing all the elements Of
illegal rates, and the advantages so OBJ
tained over independent shippers have
been Of great value 10 that company"
The commission then relates several
Instances OF this kind detailed in the
report Of the Commissioner Of Corpora
tions and proceeds:
.'rhe ruin OF its competitors has been
a distinct part OF the policy OF the
standard OIL Company ia the past,
systematically and persistently pur-
sued. One method has been the or
ganizatiOn OF a perfect system OF es-
pfOnage over the shipments OF tts COM
pstitoFs. resulting IN knowledge as 70
the destination OF every car OF OIL
leaving the refinery OF an independent.
The Standard agent at the destination
Is held responsible II the independent
oil IL sold II does not appear that the
railroad companies have directed the
furnishing OF this information, or that
the practice has been sanctioned by
superior otneials OF the road, but IL
does appear that such information is
systematically obtained from railroad
employees.
The testimony shows that the stand
ara al one tine, II IL does not now, de-
voted FUND 10 the purpose or obtain
ing this Information IL has frequently
f. happened when the supply OF indeDend-
ent oil Ia a particular territory was
low and q shipment was peculiarly
necessary that the shipment has un-
accountably gone sStray,
s- Aided by Railroads.
Information also appears TO have
been given the Union Tank line. a crea-
ture OF the Standard, concerning the
whereabouts OF its cars, while such in
formation was not furnished To other
owners OF tank cars. and some diserinl-
ination in tank-car mileage in favor
of the tank line. is shown Tor one rail-
road. Many roads issued passes on
account OF the Union Tank line which
were ia fact. used by selling agents OF
L4AE Ete14leAAl 1A1AAg AtIaA s+tl NAAAo Va
roads have been IN the employ Of the
standard, and this may account for
the unsatisfactory service accorded 10
independent shippers
Most roads charge higher rates on
oil IN tank cars destined 10 consignees
who do not have proper facilities Tor
unloading, such as storage tanks so
situated that the oil can be transferred
by pipe nom the tank chr 10 the storage
''This has brought about the erection
or distribution tanks in all parts OF the
country The tanks are necessarily To-
Gated near The railroad tracks. and there
was much complaint that the railroads
- allowed the Standard 20 erect its tanks
at convenient points on the railroad
right Of way and declined 20 accord TINS
privilege 10 independent refiners. The
b commission is satisfied that such dis
elimination has been very generally
practiced IN the past.
One Branch OF Monopoly.
AT present every considerable RAM
road In the United States Is buying OF
the Galena Oil Company, one of the
Oh standard companies most Of It's Nbri-
90 eating and signal oils. the prices paid
for mbricating oil, which is Of three
grades. being substantially the same TO
the various roads The contracts gem
orally contain a guaranty 10 the road
that the cost OF luDrlCduOu shall not
exceed a certain sum per car mile or
engine mile. and provide for oil in
spectors appointed by the oil company
10 supervise the use OF the oil. The
Qalsna Company is rarely called upon
70 nav anything under the guaranty,
and the prices obtained BY the OH COM
pany are extravagantly high.
"Ons Of the same grade could be
bought IN the open market for about
one-half the Galena COmpany's prices.
The traffic Official OF one railroad COM
panY IS said 20 have stated that the
STANDARD traffic was many times that
or an independent. and that that set
lied the proposition. Another operating
official wanted 10 contract with the in
dependent concern but declared the
matter or after a conference with his
president Most roads prefer 70 stand
on the guaranty, and no other concern
proposes 10 give such a guaranty"
Difficulties in Fighting Trust.
Closing its report with a discussion OF
the difficulties confronting the Govern
msnt IN coping with all these evils, the
b.. commission SAYS:
The amended act 10 regulate COM
900 MERGE makes the existing pipelines COM
mon carriers subject 10 that act.
and the power TO prescribe just and rea-
8 IN sonable rates. regulations, and prac-
.H.sH as