The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1907-01-31
OIL TRUST STEALS
FACTS, RUINS RIVALS,
SAYS COMMISSION
Interstate Commerce Body
Tells Congress Perpetual Mo-
nopoly Is Created.
RAILROADS OUT OF IT


Washington. II. c.. Jan. 30.-The IN
terstate Commerce commission sent to
congress "A report OF the Investigations
made BY Il under the Tillman-Gillespie
resolution concerning the relations or
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 genern'ly the methods BY
which the Standard OIL company has
built up and pcrpetuated It's monopoly"
II Is asserted that "thc ruin OF Its
competitors has been distinct part OF
the policy OF the Standard OH company
In tho past. systematically and persis-
tently pursued"
mo instance" the report says. lis
found where any railway company hns
been interested In oil lands or I'm petrol
cum production. and only one Instance
81 shown where officials OF "A railway
company were Interested I'm the pro-
duction and sale OF oil. This relates TO
certain officials OF the Baltimore and
Ohio Southwestern railroad having
owned stock or the Argnnd Refining
company. which was OH their recon-
mendation afterwards sold TO the
Standard OIL company and the lubricat-
Ing contract which the road transferred
to the Galena OH company. "A Stand
ard company.
The Standard oil company largely
monopo.izes the handling ~ petroleum
from the mouth or the well until IL ~
1 sold TO the retailer. and sometimes to-
I the consumer. and under ordinary cir
! cumstances IL margin OF profit In very
large Estimates made In the report
! II. al
! Sugar creek refinery at Kansas City
! az from tn cents per gallon. A much
/ higher profit Is Indicated for gasoline.
The sale or refined oil from the large
standard refinery at Whiting IL CORE
spondinEly profitable.
/ Little Legitimate ADVANTAGE.
"The evidence shows little basis for
! the contention that the enormous dIvi-
,lenda OF the Standard oil company nru
the legitimate result OF It's economies.
Except for It's pipe lines. the Standard
has but little legitimate advantage over
I the independent refiner.
The Standard buys advertising space
I !n many newspapers which Il fills, not
! with advertisements. but with reading
matter prepared by agents kept for
that purpose and paid for ut advertising
rates. AK ordinary news. The aSsump-
tion Is that this literature furnishes
many Of the Ideas touching the great
benefits conferred upon the public by
the Standard oil company.
Possession OF the pipe lines enables
the Standard absolutely TO control the
price OF crude petroleum ana the price
which !ts competitors I'm n given To-
callty shall pay. IL can raise the price
/ in one locality and obtain It's own oil
I from another and reverse the process
when II desires To- do so. Whoever con
trolls the avenues or transportation OF
- a Al.
duct can speedily drive his competitors
out OF existence. and the production
and distribution Of petroleum Is no cx-
ccptiOu To the rule
Enjoyed Secret Rates.
RI pipe line system az the standard
the report contends. IN not a natural
but rather an artificial advantage. IL
Is argued that the reason why Ions
pipe lines compelling with those OF
the Standard have not been provided
is found In obstacles In tho way OF such
undertakings, having been opposed by
the railroads. whose right-Of-way has
generally stood as Chinese wall
against all attempts To extend pipe
lines. Ordinarily. II II said. the stand
ard has not received rebates In recent
years, 80 far as has been discovered
but IL has nevertheless enjoyed secret
rates. possessing all the elements oi
illegal rates. and the advantages ~ oh
taIned over independent shippers have
been OF very great value To that com
pany. Numerous instances OF dlscrim
inatlon In favor OF the Standard re
'sulting from the published railway
rates were found, says the report
In discussion the assertion confined
IN the report that the ruin OF It's com
petitors has been distinct part OF tbs
policy OF the Standard OH company.
the commission says one method ha'
been the organization OF a perfect Eys
TEN OF espionage over the shipment
OF It's competitors. resulting In knowl
edge as To the destination uf every ca
OF oil leaving the refinery OF an indie
uCndent. The Standard agent at tn
destination, says the report. n held r.
uTCnsible IL the independent oil IL sold
1T does not appear" says the re
port, that the railroad companies hay,
directed the furnishing or this informa
ton, or that the practice has been sane
toned by superior officials Of the roads
but Il does appear that such !nfurma
ton Is systematically obtained iron
railroad employees"
Killing by Price Reduction.
IL Is asserted that II IL the prartic
OF the Standard. whenever a Conpetitu
erects a storage tank To which the ui
Is transferred from tho tank car. 4
reduce the price OF oil In that localii,
TO such point as Ia make the business
Improbable TO such competitor. Will
prices were maintained In other local
titles. There was much complaint tina
the railroads allowed the standard q
erect its tanks NJ convenient points al
the rIght-of-way ana declined TO accom-
this pTivileE" To Independent TcilurrS
The commission says Il IL satisfied tina
such discrimination has been yer! g"u
orally practiccd ~ the past,
The report shows that AT prcsen
every considerable railroad In In
United States IL buying from the Ga
lena oil company, one OF the Standar
companies most OF It's lubrlcating an
signal oils, the prices paid for lubr
eating oil. which IL or these grades. ht
| Ing. amhai nnllnllA. IhL a-Ina. In the ~.