The free lance. (Fredericksburg, Va.) 1885-1926, 1907-01-31
OIL 7RTSTS SECRETS
Ruin Of It's Competitors the Policy
of the Standard.
BRIBEp RAILROAD EMPLOYEES

BRIBED RAILRORD EWFGO -
interstate Commerce Commission De-
clares Monopoly Didn't Get Rebates
But Did Enjoy Secret Rates Just As
Illegal.
Washington. Jan. %. - The inter
state commerce commission sent to
CONGRESS- a report Of the investigations
made by it under the Tillman-Gillespie
resolution approved March last con
corning the relations of common car
riors by rail to the production and dis
trbutidn of oil. The report covers the
distribution of petroleum and It's pro
ducts east of the Mississippi river.
and. incidentally, the Kansas and
Texas fields.
II points out generally the methods
bv which the Standard oil company
has built mp and perpetuatcd its mo
nopoly and the relations OF transpor-
tation agencies to that monopoly. IL
is asserted that the ruin of its com
petitors has been a distinct part OF the
policy OF the Standard oil company in
the past Systematically and persist
emily pursued" Considerable Of the
ground covered has been gone into
fully i'm the report on oil and its dis
tribution made public by the bureau OF
corporations.
"No instance" the report says. els
found where any railway company has
been interested in oil lands or in pee
troleum production. and only one in-
stance is shown where officials of "a
railway company were interested in
the production and sale of oil.
"The STANDARD oil company largely
monopolizes the handling of petroleum
from the mouth of the well until II is
sold to the retailer. and sometimes To
the consumer and under ordinary cir
cumetanccs It's margin of profits is
very large. Estimates made in the rr-
port show a profit on refined oil from
the Sugar Greek refinery az Kansas
CITY of from five 10 eight cents per
gallon 4 much higher profit IS indi.
Gated for gasoline. The sale of refined
oil from the large Standard refinery az
Whiting is corrcspondingly profitable.
THE evidence shows little basis for
the contention that the enormous
dividends of the Standard oil com
panv are the legitimate result of its
economies. Except for its pipe lines,
the Standard has hut little Legitimate
advantage over the independent re-
finer
"1he Standard buys advertising
space in MANY newspapers which 10
fills. not with Advertising but with
reading matter prepared by agents for
that purpose and paid for az adyertis
inc rates. as ordinary news The as.
sumption is that this literature fur.
nishcs many of the IDEAS touching tho
great benefits conferred upon The pub
lie by tho Standard oil company.
Possession of the pipe lines en-.
ablcs the STANDARD absolutely 10 COM
troll the price of crude petroleum and
the price which its competitors in a
given locality shall pay. II can raise
tho price i'm one locality and obtain iis
own oil from another and reverse the
process when it desires TO do so. Who
ever controls the avenues of transp'r.
tation Of the raw material or of the
refined product can speedily drive his
competitors ont of existence and the
production and distribution of petro.
leum is no exception to the rule.
"OrdlnTily. it is said. the Standard
has not received rebates in recent
years. So far as has been discovered
but it nevertheless enjoyed secret
rates possessing all OF the elements of
Illegal rates. and the advantages so OBJ.
tanned over Independent shippers have
been of very great value to that com
pany.
The Standard has sold different
grades OF oil at different prices from
the same barrel Il has paid employees
of independent oil companies for infor'
nation as TO the business OF those
competitors and has paid employees OF
Industrial companies to secure the
adoption of its oil in preference To that
of its competitors
at has followed every barrel of in
dependent OH TO destination Its agents
are instructed to secure customers al
any sacrifice It has tempered with the
oil inspo tors i'm different states. The
laws of eral states concerning the
I inspecti.u OF oil are singularly defec-
tive. and this has been turned to profit
by the Standard.
"The commissions only knowledge
Of the competitive methods OF the
Standard Oil company is obtained
from evidence taken under oath in
this investigation. The Standard was
given permission to explain or rebut
the facts.
This evidence. if true. demon
strates that the competitive methods
of the company in the past have been
unfair and disreputable.'