The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1907-01-28
Most Scathing Arraignnlent Yet
Made Against The Great Oil
Octopus In The United States

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restored or advanced former priees.r
The commissions only Knowledge
Of the competitive methods of the
Standard oil Co., says the report, was
obtained from evidence taken under
oath.
It is stated that the Standard was
given permission to explain or rebu.
the facts.
"This evidence, II true continues
the report, demonstrates that the
competitive methods of the company
In the past have been unfair and even
dlsreputable.. Its motto has been the
destruction of competition at any cost,
and this policy has been pursued with.
out much reference of deeency Of con.
science. and 1t is significant that the
larger independent refiners sell the
greater part Of their product In for.
eisn countries. One independent tes.
tilted that rs per cent. of his product
wert abroad and said he could com.
pete with the Standard In Germany,
where It's methods, as followed In this
country, would not be tolerated, but
that he could not compete with II
here"
It Is the opinion Of the commission
that existing law is inadequate to
cope with the evils complained of.
at may become necessary says
the report, "for the uprootins Of es.
tablished wrongs and the prevention
Of others, that the government shall
fix In the first instance the rates and
regulations for the transportation Of
oil. This method has been adopted
by the legislature, Of one State. Il
will probably be found necessary to
disassociate, In the case Of oil, as In
that Of other commodities, the func.
tion Of transportation from that Of
production and transportation"
CHARGE AGAINST RAILROAD.
The investigation failed to disclose
any instance where a railway com.
pany has been interested directly In
oil lands or In petroleum production,
only one instance was discovered
where officials Of railway company
were Interested In the production and
sale Of oil. This related to certain
officials of the Baltimore and Ohio,
Southwestern Railroad, who owned
stock Of the Arsand Refining Co., and
the iubrieatins contract which the
road transferred to the eaiena OIL Co.,
Standard OIL concern.
Discussing in detail its charges
against the Standard OIL Co., the com.
mission says In part:
"The Standard Oil Co. large monop-
oiizes the handling Of petroleum from
the mouth Of the we'll until It Is sold
to the retailer, and sometimes to the
consumer, and under ordinary circum.
stances its margin Of profit is very
large.
"Tne evidence shows little basis for
the contention that the enormous div.
idends Of the Standard Oil Co. are
the legitimate result Of its economies.
Except for its pipe lines the Stand.
ard Oil Co. has but little legitimate ad.
vantage over the independent refiners.
At the basis Of the monopoly rests
the pipe line.
"The Standard may to-day pump oil
from a well In Indian Territory to its
refinery at Jersey City. The cost Of
piping barrel Of oil from the Kansas
field TO the Atlantic seaboard would
not be much, II any, above so cents.
The independent refiner is located
usually near the source Of the crude
supply, but the Standard locates Its
refineries near the great eenters Of
distribution. The independent refiner
in interior Kansas finds 1t difficult TO
dispose Of his residum such as fuel
oil, because the railroad rate Is al.
most as much as its value; but the
Standard has at the doors of its re.
fineries in Kansas City a market at
a favorable price for large part Of
this by.product and this Is Of itself
an enormous advantage. s
CONTROL PRICE OF CRUDE OIL.
Possession Of the pipe lines enables