Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-01-29
PIPE LINE SYSTEM.

out Of existence, and the production and
distribution OF petroleum is no excep-
tion to the rule"
PIPE LINE SYSTEM
The pipe line system Of the stand
ard. the report continues, is not ma
tural. but rather an artificial adNan-
tagc. II is argued that the reason why
long pipe lines competing with those
OF the Standard have not been provid-
ed is found IN obstacles IN the way of
such undertakings having been OPP
posed by the railroads. whose right of
way has generally stood as Il Chinese
wall against all attempts to extend
pine lines. Ordinarily II is said, the
Standard has not received rebates In
recent years, so far as has been dis
covered, but It has nevertheless en-
Joyed secret rates possessing all of the
elements OF Illegal rebates. aud the nd
yautages so obtained over independent
shippers have been of very great value
to that company. Numerous instances
of discrimination in favor OF the stand
ard resulting from the published rail-
way rates were found. gays the report
IN this connection the following is an
instance given:
RAIL RATES ADVANCED.
"A low rate of 10 cents per 100 pounds
upon petroleum and its by-products ex-
. lSlEu lOt many years from NCDuCSna.
Kan. ghere the Standard operated II
refinery. to Kansas City. This was for
the interest OF the Standard; but when
the Standard constructed its refinery
at Sugar creek. Kansas City, and con-
nected 1t by pipe line with the Kansas
oil wells the rail rare vas advanced
from 10 10 II cents per 100 pounds.
While the railways insist that this was
not done at the instance of the Stand
ard, the significant fact remains IN this
and many other cases called to the
commissions attention that the rate
was not changed until II came to be
for the interest OF the Standard that
IL should be changed. and 1t was
changed, as that company naturally
would desire"
running COMPETITORS.
In discussing the assertion contained
in the report that the ruin of its COM
petitors has been n distinct part of the
policy of the Standard OH company"
the commission says one method has
been the Organization of a perfect sys-
TEN of espionage over the shipments
of its competitors resulting in knowl-
edge us to the destination of every car
of oil leaving the refinery of an inde-
pendent The Standard agent at the
destination. says the report, is held re-
sponslble If the independent oil Is sold.
BUYING INFORMATION.
1T does not appear" continues the
report, that the railroad companies
have directed the furnishing OF this in
formation, or that the practise has
been sanctioned by superior officers OF
the roads, but 1t does appear that such
information is systematically obtained
from the railroad employees. The testi-
mony shows that the Standard at one
time. II il does not now devoted
fund to the purchase Of obtaining this
information. 1t has frequently hap
pened. when the supply of independ-
ent oil In u particular territory was
low and a shipment was peculiarly ne
cessary, that the shipment has unac-
countably gone astray. information
also appears TO have been given the
Union Tank line. a creature of the
Standard concerning the whereabouts
of it's cars, while such Information WAS
not furnished to other owners OF tank
cars, and some discrimination in tank
car mileage In favor of the tank line
is shown for one railroad"
COMPETITION KILLED.
II is asserted that II is the practise of
the Standard, whenever n competitor
erects storage tank to which the oil
IL transferred from the tank car, to re-
duce the price of oil in the locality to
such a point as to make the business
Improbable to such competitor, while
prices were maintained in other locali-