The sun. [volume] (New York [N.Y.]) 1833-1916, 1912-10-21
|0|L TRUST DISSOLUTION
| BIG AID TO INDEPENDENTS
mot q Farce" Says Secretary
Chamberlain Of Petroleum
Association.
BUSINESS NOW FREE
Letter to Wickersham Points
to Good Results Of Govern
ment's Suit.
FREE
BUSINESS NOW f

| document which deals q hard blow 10
Col Roosevelt's contention that the dis
solution Of the Standard OIL Company
has been . farce and ineffective. Mr.
Wickershams answer to this Is letter
written to him by c. d. Chamberlain
secretary and general counsel OF the
National Petroleum Association. an or
ganization Of Independent refining COM
panies. Mr.. Chamberlain says that the
decree OF the United States Supreme
Court in the Standard on case has not
only afforded the independents relief
but has given them a chance to live
I-"an unrestricted and uncontrolled op-
portunity to carry on their business
without unfair, secret and oppressive
competition" Mr.. Chamberlain says
further that there has been a very sub
stantial increase in the proportion OF the
trade controlled by the independents.
| The Chamberlain letter is regarded as
one OF the most effective documents
put out by the Taft people in the pres
ent campaign. Here is the Attorney
Generals statement and the letter:
THE Attorney-General has been maxi
Ing very careful inquiries into the pres
ent condition Of the business Of the
| country in the production and selling Of
| crude oil and the sale and distribution
Of refined oil and it's products as affected
by the decree Of dissolution in the
Standard OH case. He has already
pointed out on several occasions the
fact that the decree in that case gave
precisely the relief which Mr.. Roose-
velts Attorney General and his able
assistant. Frank b. Kellogg. sought in
the bill filed at st. Louis Mr.. Kellogg
himself on more than one occasion has
declared that Col. Roosevelt's statement
that nothing had been accomplished by
the decree was wide Of the truth, and
In Mr.. Kellogg's annual address before
the American Bar Association at MIL
waukee In August, 1912. ne said:
Il believe absolutely in the Justice. in
the soundness and in the economic ne
cessity Of the decisions In the Standard
OIL and tobacco cases The judg-
ment sss put an end to all the long
list OF unfair methods OF competition
used for the purpose of crushing out
and destroying competitors: 1t severed
the holding company. separated the sub
sidiary corporations and prohibited
them from being thereafter managed
a. one harmonious whole. and thereby
deprived them Of the power to control
the commerce Of the country. To the
smaller corporations and individuals
engaged in the business 1t brought pro-
lection from the control and domination
Of the great combinati ton and to-day the
independent manufacturer in the oil in
dustry Is enjoying the right to engage
In business with q fair opportunity to
compete D..
For the purpose Of ascertaining tho
Views Of representatives Of the inde-
pendent dealers on this latter point the
Attorney-Genera some days ago wrote
to G. d. Chamberlain. who Is secretary
and general counsel Of the National Pc
troleum Association, an association of a
very large number of Independent refin-
ing companies embracing practically all
the companies not connected with the
Standard OIL Company and its subsid-
iaries asking that he furnish as accu-
rate Information as he could concerning
the present condition Of the oil business
as contrasted with its condition prior to
the decree against the Standard OIL
combination in May. 1911.
"Mr. Chamberlain has replied to that
inquiry in the following letter:
Hon. George W. wtckersham, Attorney
General Washington. d. C.
NY DEAR Sra: i am in receipt OF your
letter Of October ., In reply TO which I
would state that II is not easy to draw a
sharp line for the purposes OF comparison
between the conditions OF the oil business
at tho date to which you refer. when the
Supreme Court decided tho Standard oil
case in May. 1911. and the present time,
because the effect OF the Governments
prosecution of the Standard OIL combina-
ton began practically with the filing of
a,if In aNI
that date the practices Of the Standard
OIL combination In large measure ceased
to be predatory and the independent
dealers began TO have q chance to live.
This condition continuously improved
during the pendency OF the Governments
since the decree Of dissolution. so that II
may be safely stated that tho giving OF
rebates upon which tho Standard OIL mo-
nopoly WAS built UP has ceased, prefer
ential rates are few and far between, dis
closure Of information by carriers OF COM
petitive shipments IL no longer practised.
price cutting below cost to kill competi-
ton 10 rare and many other unethical
commercial practices have become SO In
frequent AZ hardly to cause complaint
Now, however. the independent manu-
facturer and rehner Of oil Is able to con-
duct his business with fair share OF
proft reasonably due him and without the
kouThui nduubCdp ulucT WHICH ne lHpOTeQ
before the Governments suit was brought
In 1908 returns from the oil industry
show that tho STANDARD OIL combination
controlled about 81 per cent Of the entire
oil business OF the United States and the
remaining IS per cent. was distributed
among tho Independent companies The
most accurate data which have been able
10 secure show that at the present time
tho Independent companies control a. per
oent. exclusive OF California, where I am
Informed tho independents control nearly
80 per cent.
Ono other practical result Of the Gov
ernment's prosecution and decree is shown
In tho increased prices secured by pro-
ducers OF crude petroleum Tho total
production for the last Ave years (statcd
In millions) was: For the year 1907,
fS6. 100000 barrels; 1903, 17s,000, 900 bar
rels; 1909, $4,000. 900 barrels; 1910. 2O0,-
100000 barrels. and 1911. 100000 900
barrels.
You will of course. recall that II was
never the policy of the Standard OIL com
bnation TO own the oil wells. and their
actual ownership was but trnirg per-
centage of the whole. being not more
than IL per cent. In 1909. the latest data
that have Their policy was TO control
Il transportation. and by controlling trans
Iortation and the enormous volume of
business In the refined product they fixed
tho price OF crude oil at figures which
they chose TO give, Since the date of