The Washington herald., 1914-06-14

Parkersburr, W. Va, built . pipe line
thirty-hx miles long. on flowed the
whole distance by gravity. Then J. 8.
Hutchinson. inventor Of the rotary
pump. conceived the idea of forcing OIL
throughs the pipes. The first line into
which oil vas pumped extended from .
well near Titusville. Pa. to a railway
station three miles distant. II was q
success.
Enernoas Pipe Line Profits.
"Other lines were soon built. The
American Transfer Company, In 1871, be-
gan to construct and buy pipe lines
in Pennsylvania. II was owned by the
Standard Oil Company. The United Pipe
Lines took over the business in 1880. and
four years later was succeeded by the
National Transit Company. another
Standard organization. Soon the Ma
tional Transit Company became the
Standard Oil Company's agent for the
acquiring and transporting of petroleum
by pipe line throughout all OF the oil
fields in the United States except In
California. Pipe lines cost from $500
20 $500 . mile.
'.During a trial Of suit against the
Standard in a Federal court 1t was
shown that the Buckeye Pipe Line Com
pany, a Standard subsidiary, made a
profit Of more than 100000 in the year
1906. The total investment Of the COM
pany, SO II was stated. amounted to
only s15.a27.oco. The Southern Pipe Line
Company. with an investment of H.3s7,-
900. made q profit Of A.s50.ooo. The East
Ohio Gas Company. another Standard
corporation. made a net profit In that one
year alone Of SO. 900 on an investment
Of 81. .00o, 900.
"Of course. these amazing profits were
collected from the consumers of oil.
Many other pipe lines owned by the
Standard were doing business In 1906 and
all were highly prosperous. For ex-
ample. the Indiana Pipe Line Company.
it was found. made s2,5l3.0oo on a plant
investment Of A,s53. 900: the Eureka Pipe
Line Company made s.. .i35. 600 on an in
vestment Of E155. 900: the Northern Pip>
Line Company made 8. $50. 900 on an in
yestment Of s.. .7s7.Ooo. and the New York
Transit Company made s.. 3f3.o 900 on an in
vestment Of IS, 900.
Il would lift this extortionate tax from
the consumer. How? you ask. By CIV
ing the trunk pipe lines fair value
and having them become the property
Of the people. I would pay the Stand
ard all the lines are worth and would
throw them open to every producer and
refiner Of oil in the United States.
Suppose Railways Were Combined.
''Then the petroleum industry would be
free. and renners, the Standard Oil Com
pany with the rest. would compete with
one another for the patronage of the
people. The Standard, as I have said.
has no advantage over the independent
refiners in the manufacture OF oil. 1t
maintains its monopoly. repeat. because
of its ownership OF the pipe lines.
Suppose that all the great railways
should combine and refuse to carry the
general public except under prohibitive
restrictions, and were to compel every
producer and manufacturer to sell his
commodities to the combined railways at
the railways own prices, and were also
to compel the consuming public to buy
such commodities from the combined rail-
ways at prices fixed by the railways.
Well. that is precisely what Is going on
in the petroleum trade.
while the Standard Is still moving its
crude oil by pipe lines. the independent
refiners must use the railroads, and
railroad freights are four times greater
than the cost of pipeline transportation.
No one doubts the constructing and or
ganixing genius OF Mr.. Rockefeller. He
is the richest man. perhaps. in all human
history. And he has made his millions
In an industry that was practically non
existent fifty year, ago His service to
society has been very sreat. let us admit.