New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-10-21
DEFENDS STANDARD OIL.
BmghamtOn Man Tells Hoe Com
pany Has 4chiered Its Success.
the Editor Of The Tribune.

10 the EulJOr OF me Tribune.
Sir: In these days. when there is so little dis
elimination made. either by the newspapers or
by the general public. in their wholesale con-
demnation Of men and orporations-especially
corporations-whch have been distinctly success
full in business way il is certainly refreshing
read your editorial in to-days Tribune Spying.
The Tribune refuses TO hold up its hands in holy
horror at the custom Of the Standard Oil Com
pany in keeping tab the business done by its
competitors. and frankly states the fact which
every business man knows to DE true that the
custom is one which is practised a greater or
less extent by smaller concerns engaged in COM
petitive lines; that unless the general community
Is to brand itself with the hot iron OF reproach
1t should not condemn corporation for doing
thoroughly the thing that ordinary do
in n haphazard way"
The Tribune might go further toward bringing
about a more rational discrimination on tho part
OF the public between good and evil in and
things. y perverted public sentiment is a source
of great danger. and Just now without doubt. the
attitude Of the public, and largely Of the public
press is one Of indscrimnate hostility toward
men and corporations that have succeeded in
amassing large fortunes. That perverted public
sentiment is at the same time both the cause and
the effect Of much legislation harmful TO legitimate
business enterprises.
oven Judges. in interpreting the law are.
sciously or unconscously, Influenced by it, taking
for example. the fine of s2924oO0o recently imposed
by Judge Lands the Standard OIL Company of
Indiana. In that the Standard Oil Company
shipped oil over the Alton Railroad from Chicago
st. Louis at six cents hundred pounds
open rate which every other shipper OF like COM
modify paid, but. through some neglect or over
sight on the part of the Alton Railroad Company
the scent rate had not been filed with the COM
mission The Alton Railroad Company given
immunity for its failure TO file this rate and tho
Standard Oil Company adjudRed guilty of
violating the law in accepting openly quoted
freight rate without knowledge it's part thst
the railroad company had not done its duty in
fling such rate with the commission. The loss Of
respect for the courts is serious thing. a result
which inevitably follows when the administration
of justice Is influenced by public clamor.
Whatever may have been the offences Of the
Standard on Company, real or imaginary. the
public should keep certain essential facts in mind.
The Standard OIL Company is, without doubt. the
best managed business corporation In the world
Many things 10 its credit have been disclosed dur
ing the recent investigation into its affairs II has
never watered and uuloaded It's stock on the pub
lie. II has never loaded its books with fictitious
assets FOR the purpose OF deceving the pubic
II has never paid dividends out of capital TO in
duce the public invest ut inflated prices II
has never engaged IN Juggling with It's stocks. II
has made large profits, TO be sure but that Is no
offence in Itself. by any means. It's prohts nave
been made ont OF the business for which II was
organized producing refining and selling the prod
ucts or potroleum-and not by exploiting its stocks
and bonds.
In many respects. the methods OF the Standard
oil Company stand out IN refreshing contrast to
the methods Of other large corporations Take,
illustration, the methods OF the PETERBOROUGH
Metropolitan. as revealed by the examination now
in progress. II is a matter Of common knowledge
that there Is scarcely n railroad company a street
railroad company, gas company, an electric
light company, any other public service cor
porauou. or. indeed. any large business corpora
ton. Ia the country whose outstanding capital
stock and bonds represent actual values. dollar
for dollar. for moneys invested. Somewhere back
IN m" history OF each Of such concerns there is
q point where. in the case OF the InterborouEh-
Metropolitan. wind and water were injected into
the corporate body and capitalized as an asset
Promoters and manipuators OF such concerns
and combinations have made their fortunes not
out OF the legitimate earnings ~ the corporation
in tho transaction OF the business for which Il
was formed. but by Juggling with its obligations
Two concerns. each with 100000 capital stock
outstanding representing equal amount OF
actual tangible assets. merged or consolidated
with new capital stock Of $2HoQ0ocO. which is
unl0ad"d on the innocent investor, and the public
IS told that high rates are necessary 10 pay dvi-
bends. I'm the code Of high finance employed IN
ef"cting such combinations plus equals g or
more. The Standard oil Company stands almost
alone among the big corporations IN that It's
stock represents actual tangible values and its
profits have been made. not BY juggling with its
stocks and bonds. bur by the dnigent and intelli-
gent prosecution ~ the business for which the
company formed.
The standard OH Company has built UP an
enormous business and has made enormous profits
out Of its business. but that has been DONE so far
as appears from the published reports OF the
examination into its affairs by the employment OF
the same methods on a larger scale. which the
business community generally sanctions and en-
ploys a smaller scale. The Standard on Com
pany has diminished the cost OF production de-
vised cheaper methods of transportation and dis
trihuton. utilized waste products and introduced
economies in operation. which have enabled II TO
AXE Ia Ff{v-r-
larger than those obtained by lesser concerns
i'm the same lines Of business. That has been the
secret of its success
Whether IT has accepted rebates from common
carriers, contrary 20 law. | don't know. Time was
when every large shipper expected and received
from common carriers better rates than smaller
shippers. Subsequent legislation made that Illegal
Since then the Standard oil Company insists that
it has obeyed the law in the spirit and 10 the
letter, and that II has never knowingly violated
IN" law. That statement is made over the sig
nature of Charles NJ. Pratt. the secretary OF the
company, and any one who has known Mr. Pratt
as nave known him, and cniovod his friendship
for 'hITty years VIII accept his statement as true
except ON convincing proof to the contrary
Iiut did not purpose to go into these matters
The essential fact | wish TO emphasize and which
] hope Tho Tribune will emphasize is that the
standard oil Company has seen. so far as II ap-
pears. honest with its stockholders; thar il has
never been guilty OF stock juggling nor resorted
to the methods Of high finance" which have
brought just reproach upon many large concerns.
and in these respects, at least its methods have
been honorable. ISRAEL r DE~yo
Binghamton \. Y, oct. Il, 1907.