The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1907-01-29
COMMERCE COMMISSION SENDS
REPORT TO CONGRESS ON
OIL INVESTIGATION.
CONDEMNS POLICY OF THE TRUST
RUIN OF COMPETITORS ONE OF
THE PRINCIPAL FEATURES
OF THE SYSTEM.


state commerce commission has sent
to congress a report Of the investiga-
tions made by 1t under the Tillman-
Gillespie resolution concerning the re-
lations Of common carriers by rail to
the production and distribution of oil.
The report covers the distribution Of
petroleum and its products east of the
Mississippi river and, incidentally, the
Kansas and Texas fields. The report
points out generally the methods by
which the Standard Oil company has
built up and perpetuated its monopoly
and the relations of transportation
agencies to that monopoly" 1t is as
serted that "the ruin Of It's compel
itors has been distinct part of the
policy Of the Standard Oil company
in the past, Systematically and per-
sistently pursued"
1.-THE Standard Oil company" the
report says, largely monopolizes the
handling of petroleum from the mouth
of the we'll until 1t is sold to the re-
taller and sometimes to the consumer
end under ordinary circumstances its
margin Of profit Is very large. The
profit on refined oil from the Sugar
Creek refinery at Kansas City is from
s 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
spondingly profitable.
Not Result of Economy.
1.-THE evidence shows little basis for
the contention that the enormous
dividends of the Standard Oil COM
pany are the legitimate result Of it's
economics. Except for It's pipe lines
the Standard has but little legitimate
advantage over the independent re-
finer.
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 assumption is that this
literature furnishes many Of the ideas
touching the great benefits conferred
upon the public by the Standard Oil
company.
Tho pipe line system Of the Stand
ard Is not natural but rather an
artificial advantage. 1t Is argued that
the reason why long pipe lines COM
peting with those Of the Standard
have not been provided Is found in OBJ
stacles In the way of such undertak-
ings having been opposed by the rail-
roads, whose right Of way has gen.
orally stood as Chinese wall against
all attempts to extend pipe lines. Or
dinarily the Standard has not received
rebates In recent years, SO far as has
been discovered, but 1t has neverthe-
less enjoyed secret rates possessing
all of the elements Of illegal rates and
the advantages so obtained over inde-
pendent shippers have been Of very
great value to that company"
Destruction Of Competition.
In discussing the assertion con-
tanned In the report that "the ruin of
it's competitors has been a distinct
part of the policy Of the Standard Oil
company" the commission states that
one method has been the organization
OF perfect system Of espionage over
the shipments of It's competitors, re-
sulting in knowledge as to the destina-
tion of every car of oil leaving the
refinery of an independent. The
Standard AGENT at the destination,