The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1907-01-30

! company, COllluUeu ~ OpCl dtO IL
under the old name carrying the idea
to the public that the company was
still independent and competing with
the Standard.
cit has Used such purchased or in
dependently organized companies to
kill off competitors by such compa-
MES reducing prices.
"The operation of such fake inde-
pendent concerns has been one Of its
most effective means of destroying
competition.
"The Standard has habitually re-
duced the price against it's competitor
in a particular locality, while main
| tanning it's prices at other places.
When competition was destroyed it
restored or advanced former prices -
The commissions only knowledge
of the competitive methods of the
Standard Oil company, says the re-
port, was obtained from evidence TAX
en- under oath. 1t is stated that the
Standard was given permission to ex-
plain or rebut the facts.
s.This evidence if true,' continues
the report, demonstrates that the
competitive methods of the company
in the past have been unfair and even
disreputable. It's motto has been the
destruction Of competition at any cost,
and this policy has been pursued
without much reference to decency or
conscience, and it is significant that
the larger independent redners sell
the greater part Of their product in
+v;a Onn
testified that rs per cent. Of his pro-
duct went abroad, and said he could
compete with the Standard in Ger
many, where it's methods as followed
in this country would not be tolerat-
ed, but that he could not compete
with it here"
1t is the opinion Of the commission
that the existing-law is inadequate to
cope with the evils complained Of.
cit may become necessary says
the report, "for the uprooting Of es-
tablished wrongs and the prevention
Of others that the government shall
regulations for the transportation Of
OIL This method has been adopted
by the legislature of one State. 1t will
probably be found necessary to dis
associate, in the case of OIL, as in that
Of other commo dities, the function Of
/ transportation from that Of production
and transportation.
The investigation by the commis-
sion failed to disclose any instance
where railway company has been
interested directly in Oil lands or in
,n{r Hn1 IN
stance was discovered where officials
Of a railway company were interested
in the production and sale Of oil. This
related to certain officials Of the Bal
timore and Ohio Southwestern rail-
road who owned stock Of the Argand
Refining company, which was on
their recommendation afterwards sold
to the Standard Oil company, and the
lubricating contract which the road
transferred to the Galena Oil compa-
ny, Standard concern.
Discussing in detail itc charges
against the Standard Oil company the
commission says, in part:
"The Standard Oil company largely
-r1oaopol.zcs the har6!!.11- of pat-o-
Learn from the Inoata Of fzehe well un-
III ! IS sol2 % the retailer, &nd some
times 20 TIE consumer. and cnee.' or
dinaTv circumstances its margin Of
profit is very large.
The evidence SHOWS little bass fcc
the contention that the enormous div
idends of the Standard Oil company
mics. Except for its pipe lines, the
Standard mas but little legitimate ad-
vantage over the Independent refn-
ers At the basis of the monopoly
rests the pipe line. The Standard may
today pump oil from a we'll in Indian
Territory to its refinery at Jersey City.
The cost Of piping a barrel Of oil from
the Kansas field to the Atlantic sea-
board would not be much, if any,
above 80 cents. The Independent re-
finer is located usually near the
source Of the crude supply, but the
Standard locates its refneries near
the great centers Of distribution. The
independent refner in interior Kansas
finds it difficult to dispose Of his
residuum, such as fuel oil because the
railroad rate is almost as much as its
value; but the Standard has at the
doors of it's refinery IN Kansas City a
market at favorable price for a
large part Of this by-product, and this
is Of itself an enormous advantage.
Possession Of the pipe lines en-
ables the Standard absolutely to con-
troll the price Of crude petroleum and
the price which its competitors in
given locality shall pay 1t can raise
the price in one locality and obtain
it's own oil from another and reverse
the process when it desires to do so.
"The pipe line system Of the Stan
dard is not natural, but rather an
artificial advantage. The reason Why
long pipe lines competing with those
of the Standard have not been pro-
vided is found in obstacles thrown in
the way Of such undertakings, having
been opposed by the railways, whose
right Of way has generally stood as
Chinese wall against all attempts to
extend pipe lines. However; in cases
brought to the attention Of the COM
mission every facility has been eX-
tended by railways to the Standard for
the construction = pipe lines.
.'While the So 9a-d has not rec