Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-02-27
kN|FE FOR OIL PROFITS
-
Simple hange in Tariff Bill
May Cut Octopus Out OF
Many Millions
: PECULIARLY PROTECTED
Supposed to Be on Free List, Counter
vaiIins Duty Gives Standard Prac-
tical Monopoly of Business in This
Country--Combinatio Of Parties
May Revolutionize Prices.
Ispeclal Correspondencel

| Washington, Feb, 2I.--To carve tht
Standard Oil Company out of twelve
or thirteen million dollars year
profits, by a simple change In the
tariff bill. Is the plan for which it is
| believed enough votes are going to be
secured.
1t is declared positively that all the
democrats and two republicans on the
ways and means committee are now
pledged to this move. There are
| twelve republicans ana seven demos
Gratis on the committee. If three re-
puhlicans join the democrats, the
| committee will stand ten to nine In
favor of Nhe proposal. The two re-
publicans, whose names are carefully
guarded by the promoters of the plan
are said to have given their promise
that they will support the amendment
| in every possible way. There Is much
speculation as to their Identities. and
rumor suspects strongly that Mr.
| Longworth, son-in-law of the presi-
dent, is one of them.
Petroleum Peculiarly Protected.
Petroleum is commonly supposed to
be on the free list. Nominally 1t is,
The Dingiey act places it there. But
that act also contains provision I'M
posing countervailing duty on it,
equal to the duty imposed by any CIV
en- foreign country on importations of
petroleum from the United States
Under the operations of this counter
vailing duty. very high tariff is in
fact imposed on petroleum brought to
these shores.
This situation as to petroleum was
explained in much detail last session
In speech by Representative kuster-
mann. of Wisconsin. He made a de-
tailed study of the law and staff les
of the subject, and caused consider
able sensation by his calculation of
something which was not new to tar
If sharps, but was understood by few
people outside the charmed circle.
Russia a Lone Competitor.
Mr. Kustermann showed that the
only country which in fact could send
any petroleum worth while to the
United States is Russia. Russia has
for years been engaged in fight
against the Standard Oil interests OF
the United States. The Standard peo-
pie became Interested in the Bagu oil
fields Of Russia and were in fair way
TO suppress the Russian industry and
compel the czar's subjects to use
American petroleum and it's produts.
The Russians countered against this
by imposing very heavy protective du-
ties on petroleum. These range, ac-
cording to Mr.. Kustermann's figures
according to products. grade, ETC., from
| IS to $50 per cent ad valorem.
This tariff being imposed by Russia
lon American Petroleum, 1T operates
| automatically to impose a like rate
on Russian petroleum attempted to be
introduced here The result is thai
there are no imports. The Russian
fields have an immense capacity; they
could easily turn out oil enough to
export in immense amounts ITO the
United States if only it could get In.
What Might Happen.
Mr.. Kustermann has figured Out
| what would happen if the duty We're
removed. On the basis of prices II
Russia, he finds that the Russians
could produce the oil, pay transporta'
ton charges to the United States. anc
have left a profit Of to 4 cents pei
gallon. which is very large, provided
| present prices made by the STANDARD
Interests here were maintained.
| Going farther into the matter, MT
Kustermann is convinced that remova
of the tariff would force SUCH re-
duction of prices on petroleum pro-
ducts as would reduce the burden or
American consumers from 5 IL 600, 600 te
s13 900 900 a year. This would come
directly out of the Standards profits
The Standard might not lose its bust
| ness to the Russian oil producers; II
| probably would not. But it would
have to meet their prices, and tc
do that the consumers in this coun-
try would have to be given cheaper
prices.
Would Start Refineries.
1t is urged by supporters OF TINS
nlan for attacking Standard Oil tha'
under it independent retiners woulc
enter the business in this country, take
the crude Russian oil. and turn it ou1
in all the various products of petro.
| leum.
MIR. Kustermann has been quietly
working all session with republican,
of ways and means. He is positive
he has won two, and hopes for two
| more. If he succeeds, he will make
| the Standard Oil fight hard for It's
protection. The objection to fret
admission of Russian oil of course Is
! that it would take the place OF the
home produced article, The produc-
ton of crude oil is not controlled BY
the Standard. Thousands of independ.
ents produce it, but it is sold in the
main to the Standard. Ihese moe
pendents are ready to make grea
protest against running their market
in order to take shot at the Stand:
ards monopoly of the refining ane
marketing business.
cuMMlNs OPPOSED TO FOUR.