Smyrna times., 1907-05-22
The OIL TRUST
VIOLATES LAW
The Standard Deliberately Destroyed
Competition.
GOT POWERTHROUGH REBATES

Washington, May 20.-That the his |
tory and present operation of the
Standard on interests shows through
out the past 35 years substantial mo-
nopolization of the petroleum industry
of the country. a deliberate destruc-
ton of competition and a consequent
control of that industry by less than
a dozen men, who have reaped enor-
nous profits therefrom, largely
through system of transportation
facilities" is charged in a report just
submitted to President Roosevelt by
Commissioner of Corporations Herbert
Knox Smith. Certain information ac-
quired is withheld for the present, in
accordance with instructions of the
president. who feels that their publi-
cation might interfere with the prose
cution OF the governments suit pend
ing against the Standard Oil company
and IT'S subsidiary companies.
The report contains the net results
of study of the petroleum business
during the year 1904 1t is the first
official statement of the operations and
methods OF the Standard Oil company,
by which, the report states, through
'scandalous railway determinations"
and other unlawful devices they have
secured and maintained an exclusive
domination of the petroleum indus
try"
1t is stated that in 1904 the Standard
and affiliated concerns refined over S4
per cent. OF the crude oil run through
ref1neries; produced more than Sc per
cent of the country's total output of
Illuminating oil; maintained a similar
proportion of the export trade in illu-
minating oil and transported through
pipe lines nearly nine-tenths of the
crude oil of the older fields and SO per
cent of the crude oil of the mid-conti-
nent field"
The report points ont that the mo-
nopoly enjoyed by the company does
not rest on the ownership of the source
of the oil supply which amounts to
about one-sixth of the totah but THAT
it's growth and present power rest pri-
marily on the control of the transpor-
tation facilities"
After the railroad rebate was aban
doned, the company, the report con
tinues, was able to secure secret OIL
even open determinations of rates in
its favor. throughout practically the en
tire country. Having established its
monopoly of the pipe line business, the
company substantially refuses to ac
as a common carrier.
1t is shown that the Standard con
trolls not only the wholesale, but alsC
the retail trade.
The Standards abuse of its pip'
line monopoly is one of the creates
sources OF It's power. If the Standar'
pipe lines were Obliged to transport oi
for others at a reasonable charge tn
opportunities for competition in tn
refining business would be enOrmoUsl
increased. The failure of independen
concerns to establish similarly efficien
pipe lines has not been due to lack G
enterprise or capital It has been iu
in part to the unfair practices Of tn
Standard in directly attacking ind'
pendent pipe line undertakings. and
part to the other unfair practices b
which the Standard has attacked tn
Independent refners in the marketin
of their product and hense has pr
vented them from securing a sufficieI
volume of business to warrant the CO.
struction of great pipe line systems.
In conclusion, the report says 1t
apparent that the dominating positiC
of the Standard Oil company in the
industry has largely been secured
the abuse of transportation faciliue
first. by fragrant determinations 0
tanned from railroads; second, by a
fusal to operate its pine line syste
so as to extend to independent intf
ests the benefits to which they we
both morally and legally entitled, whi
at the same time the Standard has pi
vented such independent interes
from constructing lines of their own.
My Best Friend.
At..l poakou Uho lives