The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-01-29

not furnished to other owners of tana
cars, and some discrimination in tank
car mileage i'm favor OF the tank line
is shown for one railroad"
1t is asserted that it is the practice Of
the Standard. when ever Il competitor
crects a storage tank to which the oil
is transferred from the tank car. to re-
duce the price OF oil in the locality TO
such point as to make The business
Improbable to such competitor, while
prices were maintainedl In other lOcali-
ties. There was much complaint that
the railroads allowed the Standard to
erect its tanks at convenient points on
tie right of way, and declined 20 ac-
cord this privilege to Independent 70
finers. The commission says that it is
satisfied that such discrimination has
been very generally practiced In the
east
Compelled to Buy Of the Standard.
The report shows that "at present
every considerable railroad in the
United States is buying of the Galena
Oil company, one of the standard COM
panies. most of it's lubricating and sig
nal oils the prices paid for lubricating
oil, which is of three grades, being sub
stantially the same TO the various rail-
roads. The contracts generally contain
Il guaranty to the road that the cost Of
fabrication shall not exceed certain
sum per mile or engine mile, and pro-
vide for oil inspectors appointed by the
oil company to supervise the use Of the
Oil Tho Galena company is rarely
called upon TO pay anything under the
guaranty. and the prices obtained by
the oil company are eXtravagantly
high. Oils of the same grade could be
bought in the open market@for about
one-half the Galena company's prices"
The reports severely arraigns the
Standards methods of competition,
saying:
Competition Killed of.
The Standard has repeatedly, after
becoming the owner of competing
company. continued to operate it I'M
Ger the old name. carrying the idea to
the public that the company was stin
Independent and competing with the
Standard 1t has used such purchased
or Independently organized companies
| to kill off competitors by such compa-
MES reducing prices. The operation of
such fake independent concerns has
| been one of its most effective means of
destroying competition. The Standard
! has habitually reduced the price
against its competitor in a particular
/ locality, while maintaining its prices at
other places. When competition was
! DESTROYED il advanced or restored for
ner prices. The Standard has sold diff
ferent grades of oil at different prices
! from the same barrel. IT mas paid en-
| plOyes Of Independent oil companies for
information as TO the business of those
competitors. and has paid employees OF
| industrial companies to secure the adj
ditiOn of its oil in preference 10 that
of it's competitors. It has followed
every barrel of independent oil 20 its
destination. It's agents are instructed
TO secure customers at any sacrifice. Ii
/ has tempered with the oil inspectors
in different states. The laws OF several
states concerning the inspection of oil
are singularly defective. and this has
been turned to profit by the Standard.
Facts Secured Under Oath.
THE commissions only knowledge Of
the competitive method of the Stand
ard Oil company is obtained from evil
dence taken under oath in this investi-
cation. The Standard was given per-
mission to explain or rebuff the facts
This. if true. demonstrates that tie
competitive methods OF the company in
the past have been unfair and disre-
putable It's motto has been the de-
structiOn OF competition at any cost,
and this policy has been pursued with
4 out much reference 10 decenCy or con-
science and 1t is significant that the
larger independent refiners sell the
greater part of their product in for
eign countries. One Independent pro-
Queer testified that IS per cent of his
product went abroad, and said that he
could compete with the Standard IN
Germany, where It's methods as fol-
lowed in this country would not be toll
Grated. but that he could not compete
with II here"
On the question of remedies, the re-
port SAYS:
Remedy Suggested.
More than anything else the pipe
| line has contributed to the Standard
Oil monopoly, and its supremacy must
continue until it's rival enjoys the same
transportation facilities. The amended
act 10 regulate commerce makes the
existing pipe lines common carriers
subject to that act, and the power 10
prescribe just and reasonable rates, re-
gulatiOns and practices, after complaint
and hearing, is conferred upon the
commission. But the pipe line tariffs
filed with the commission are alleged
10 be of no actual advantage TO the in
dependent operators. The commission
only can act upon these schedules aft
er the complaint has been made chai-
longing specific rates. regulations or
practices. Some complaints are now
pending. How far the amended au-