Evening star., 1909-04-14
UNFAIR TO THE PRODUCER
MR.. PHILLIPS CRITICISES OIL
CLAUSE IN TARIFF BILL.
Claims It Will Not Cheaper Cost tc
the Consumer, But Will Injure
Small Producers.

Il HI the Vti IdS uCSCiOpCU dS = AOcoss
Of the presence in Washington and the
entrance into the discussion Of Thomas
w. Phillips one Of the leading independ-
ent oil producers of the United States for
the past forty-ive years, and former
member OF Congress from Pennsylvania.
and chairman of the labor committee of
tho House Of Representatives He was
author OF the Industrial commission law
and served as vice chairman Of that COM
mission, and was the originator Of the
bureau Of corporations acts In his supple
mental report as member Of the COM
mission.
Mr.. Phillips has been all 'his life a
stanch republican. and his expressed opin-
lone on the enactment Of free trade in
OIL. while all the materials used by the oil
men are subject to a high tariff, make
rather a spicy comment on the present
form of the Payne bill.
Discussing the bill last night. Mr.. Phil
lips said:
OF oil producers to visit Washington to
protest against putting petroleum, on the
free list, and ask for the enactment OF a
law that would place q reasonable i'm
port duty on petroleum, arrived here one
day before the final vote was taken on
the tariff bill In the House. and after
looking over the situation I find great
confusion of ideas on the subject both In
Congress and in the public press.
I THE prevailing view seemed to be that
to place petroleum on the free list would
and the producers. but would be blow
at the OIL trust. I am firmly convinced
that this IL an error In both particulars.
| for the reason that there Is no possible
or the trust injured by placing oil on the
free list. and as a matter of fact the in
dependent producers OF Oil would be
liable TO suffer very material injury. for
| the reason that there Is q great danger
| that this country would be flooded by .
great influx of cheap oil from Mexico,
| where there Is a great increase of pro-
duction. as there has recently been
struck there the largest well yet discov-
"Great productive fields are also likely
to be opened in Central and South Amer
lea. There are 500 miles along the coast
tory. The extensive developments that
have already been made in Mexican terri
tory are near the coast and the oil can
be shipped as cheaply to the ports in
America az 1t can be shipped from Port
Arthur. Tex.
Cheap Production Abroad.
| 'Tn consideration OF building a short
pipe line from the seaboard and a narrow
gauge railroad, am informed that con-
tract has been made for the sale of large
quantities of this Mexican oil at 10 cents
per barrel to an English company. which
has very large holdings and is already ex-
porting Mexican oil. and the indications
are that q large amount Of crude oil will
shortly be produced and sold at a very
low price, with but little or no cost for
pumping the same to tidewater. which
IN the United States at great disad-
vantage, because OF the fact that the
great body of-on produced In this country
Is distant from three to six hundred miles
from the coast. and the transportation
charge even by pipe line is on the average
about 30 cents per barrel from the wells
to tidewater.
"The American producer OF oil. there
fore. cannot profitably compete with Mex
| leo or South America along the coast
with water transportation.
/ another most important fact seems
to have been overlooked by our law
makers In considering this question. That
the producers Of petroleum are COM
PEELED to pay high protective tariH on
| steel. iron, cables, cordage and lumber
| and other materials which are used 50
| largely In the production of oil. In fact,
aside from the railroads. 1t is presumed
| who pay 30 many millions of dollars FOR
iron and steel. such as pipe lines, we'll
| tubings, engines and boilers and other
iron and steel materials.
Unfair to Producers.
Now. submit that this is not fair
that the oil producers should pay high
protective tariff on all the materials
and commodities which are necessary to
carry on their business. and yet should
be compelled to sell their millions Of
barrels Of production without any pro-
lection from those who may cripple this
| great industry.
There are fifteen states producing oil,
chiefly in the interior Of this country;
there are thousands Of farmers receiv-
| ing royalty. there are other thousands Of
| operating producers and hundreds Of
thousands Of laborers and mechanics di-
rectiy and indirectly dependent on this
vast industry for prosperous and pro-
| ductive employment.
/ 1.-THE oil business 10 practically the only
| great industry aside from agriculture
which is not so monopolized as to prevent
q man with limited means from engaging
in 1t and becoming the owner and con-
| troller of his own business. The oil trust .
monopoly Is not based on its ownership
of crude oil production, but on Its con-
troll Of the refining, Transporting and
merchandising of oil. Only about 10 per
| cent of the production of crude oil in the
i United States is owned by the trust