Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1907-01-31
The PROFIT ON OIL
Interstate Commerce Commission
Makes a Report as to Its Pc
trolium Investigation.
DENOUNCEs THE STANDARD


Washington, Jan. 29.-The Inter
state Commerce commission has sent
10 congress q report Of the investiga-
tons made by II under the Tillman.
Gillespie resolution concerning the
relations 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 incident
ally. the Kansas and Texas fields. The
report points out generally the meth
DDS by which the Standard OIL COM
pany has built up and perpetuated
its monopoly" 1t Is asserted that
"the ruin Of its competitors has been
q distinct part Of the policy Of the
Standard OIL company In the past,
Systematically and perslstenly pur-
sued"
mo instance" the report says, Is
found where any rail company has
been interested in oil lands or in pc
troleum production, and only one In
stance is shown where officials Of q
railway company were interested in
the production and sale Of oil.
"The Standard OIL company largely
monopolizes the handling of petro-
leum from the mouth of the well until
It IL sold to the retailer, and some
times to the consumer, and under or
binary circumstances its margin Of
profit is very large. Estimates made
In the report show a profit on refined
oil from the Sugar Greek refinery at
Kansas City from five to eight cents
per gallon. A much higher profit is
indicated for gasoline. The sale Of re-
fined oil from the large Standard
refinery at Whiting, Ind, Is cores
pondingly profitable.
1.-THE evidence shows little basis
for the contention that the enormous
dividends of the Standard OIL COM
pany are the legitimate result Of its
economics. Except for its pipe lines,
The Standard has but little legitimate
over the independent re-
liner.
"The Standard buys advertising
space In many newspapers which 1t
Hills, not with advertisements. but
with reading matter prepared by
agents kept for that purpose, and paid
Tor at advertising rates, as ordinary
news. The assumption IL that this
literature furnishes many Of the
IDEAS touching the great benefits con- {
.erred upon the public by the Stand I
ard Oil company.
Possession Of the pipe lines en-. I
lbles the Standard absolutely to con- I
;rol the price of crude petroleum and I
he price which its competitors in 4
given locality shall pay" q
On the question Of remedies the b
'eport says: More than anything
Use the pipe line has contributed to
he Standard OIL monopoly, and Its
supremacy must continue until Its .
ivals enjoy the same transportation !
ABILITIES. The amended act to regu- :,
ate commerce makes the existing
'ipe lines common carriers subject /,
o that act, and the power to pre- =
cribe just and reasonable rates, reg :
lations and practices, after complaint :,
nd hearing, is conferred upon the ;
But the pipe line tar
rs filed with the commission are
LEGGED to be Of no actual advantage
} the Independent operators. The n
commission only can act upon these {
chedules after complaint has been ii
lade challenging specific rates, reg a
lations, or practices. Some com. O
laints are now pending. How far n,
10 amended act will prove adequate r.
, the correction of such injustlces n
J now exists In respect to this traf.
0 remains to be seen.
Since in the past petroleum rates
Ave not always been established to G
remote, but often to check traffic d
I'd the tariffs are more or less per Il
Gated with determinations In favor II
the Standard OIL company, having L
ben built up during series Of years d
that view, II may be that this dis Il
animation will never be eliminated d
: any process Of complaint AGAINST