New-York tribune., 1907-01-30
THE STANDARD OIL REPORT.

The Interstate Commerce Commission seems
TO have thrashed over a good deal of old
straw in Its report to Congress on the Standard
OIL COmpanys methods. Much is said about
the past and very little about the present. 1t
has been common knowledge for at least fifteen
or twenty years that the Standard Oil Com
pany's policy was one which aimed at the elm
ination Of all competition. That company may
not have originated, but It was the first TO apply
on large scale the device OF rebates TO get It's
own product into the market at a far cheaper
rate than the product OF its rivals. It's enor-
nous freight business gave il a club which 1t
used 20 compel the railroads TO allow II COM
missions not only on ifs own oil, but on all oil
transported. Twenty years ago, when the theory
OF unlimited competition was still unchalenged,
such a policy. successfully enforced, was con-
sidered a stroke OF business genius. We had not
then developed a rational theory of the duties
and responsibilities Of common carriers and did
not comprehend the evils which would result
from an unequal distribution of transportation
charges We have seen a new light and have
now appealed 10 the federal power TO insure
every producer a square deal in transportation
facilities.
The old system was bad. Yet most Of the
offences committed under It were not plainly
understood TO be criminal or even 10 be against
public policy. Most OF those offences are COW
cred by the statute Of limitations. 1t is Of less
interest, therefore, TO inquire into the past
methods OF the Standard Oil Company than TO
determine whether those methods are still being
pursued and TO discover some practical means OF
terminating transportation advantages enjoyed
by any one great interest or industry at the ex-
pense Of others. The Standard OIL Company is
accused Of carrying TO extremes a relentless
business policy Of uDderselllng and undermin-
ing all rivals and of shutting them. by one
device or another, out Of the market We are
told by the Interstate Commerce Commission
that the company has habitually reduced the
price against its competitor in a particular To-
"cality while maintaining its prices at other
places" It has also sold different grades OF
oil at different prices out OF the same barrel"
But it Is not clear how such practices can be
corrected by federal action. The federal gov
ernment has never attempted TO compel a pro-
ducer os commodities TO sell them at a uniform
price in every community. Nor has 1t ever re-
Quired a merchant 20 dispose Of his whole stock
of any commodity at a uniform rate. Those
things must be left to the discretion Of the dealer
in every line of business, and II is quite beside
the real issue TO arralgn the Standard Oil Com
pany for practices which are inherent in any
system Of free competition.
1t would have been more satisfactory If the
commission had dealt a little less in academic
criticism and had given more attention TO the
real question in which the public is interested
that is, whether the Standard Oil Company Is
still enjoying Illicit transportation advantages;
for as the commissions report says, except for
such advantages. including its possession Of the
pipe lines, It would have no whip hand over the
independent refiners and producers. Pipe lines
have been made common carriers under the
Hepburn law. VIII IL be possible under that
law TO separate production and transportation
and compel the pipe lines to carry oil at uni
form public schedule rates, just as the railroads
are expected TO carry the freight offered themf
1t is more important 10 deal with the question Of
remedies than with vague and sweeping accusa-
tiOns OF past misdoings.