The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1923-03-16
The Chicago Tribune IN an
editorial March 9th, says:

1.-The senate committee on manufactures,
directed by Senator La Toilette, has returned
a typical La Toilette report attacking the
various Standard Oil companies as, in effect,
a monopoly more dangerous than the COM
pany was before its dissolution. The action
emphasizes growing tendency in this coun-
try to break down anything which is success.
eve quote one paragraph as illustrative of
the thought or lack Of thought which produced
the whole: while it may be that Standard
company in a particular territory does only
about half the business in that territory
and some of the Standards do more than half
and some less-yet in all territory some
Standard company is so much larger than
any single competitor that it has come to be
almost universally accepted that the tank
wagon price in any territory is controlled
absolutely by the Standard marketing COM
pany for that territory
SIN words not arranged by Senator La
Toilette, that can mean only one thing,
namely, that there is competition, and that
prices are determined by the most efficient
organization If not it is clear that smaller
company would undersell the Standard and
so bring prices down. The purpose of the
report is to break up and destroy the more
efficient organization for production and de-
livery of oil and oil products. What would
it leave as substitute? Numberless small
concerns doing business inefficiently and with
high overhead COSTS which without the COM
petition of the Standard would Immediately
force prices up, not down. incidentally 1t
would stimulate promotion Of all sorts OF
wildcat oil companies which would dupe in
vestors or spectators and help raise the price
of oil products.
''In more detail, the report complains of
the private use of Standard pipe lines, and
wants to make them common carriers In
other words it would penaize a progressive
organization and force it to divide its means
of service with inefficient organizations. That
sort of tyranny over business cannot 60 on.
Human beings will not work without reward
They will not improve service or cheaper pro-
duction and distribution if the profit of such
improvements is to be legslated away from
them by socialistic demagogues. If this re-
port became the basis of the legislation it
seeks it would destroy the incentive for i'm
provensnt and energy in the oil business and
that business would lapse into a condition
where we would pay many times the price we
now pay for it's products.
''Such thinking and such attacks upon sue
cessful business of any kind threatens the
same disaster. 1t means Generalization of
industry and energy and threatens an end to
all improvement.
"The writer of this editorial does not now
own and never has owned nor expects to
own, one share of Standard or any other oil
stock. He has, however, owned fivvers, which
IL o1a,,o+
how owners of automobiles would like to see
the price of gasoline and oil come down. He
can understand how man like La Toilette
would seek the approval of the millions of
automobile owners in this country by shout
ing that they are being robbed, and promising
to stop it. But he believes too much in the,
intelligence of automobile owners to think
they will seek lower prices of gasoline by
destroying the most efficient producer and
distributor of gasoline.
''It would not only be folly to bring that
about because of it's immediate effect, but be-
cause of it's future effect. The Standard Oil
companies are doing more to establish new
sources of supply outside this country for
American consumption than any other bust
ness we know They have prospectors and
engineers and financiers working throughout
the world to obtain wells Are we so lacking
in intelligence that we would destroy a con-
Germ which is seeking to provide for-our needs
after our domestic supplies are exhausted?
'There is but one suggestion in the entire
report that appears sane and reasonable.
That is the one for prohibition or regulation
Of expert That is worthy of consideration
and study. It might be advisable, though
even then we would have to consider possible
retaliations and the question of whether it
would be wise to cut off such a portion of
our foreign trade National defense might