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Show STANDARD OIL METHODS . . SHOWK BY OASJTZLD . IN HI3 FORMAL REPORT WASHINGTON. May '4. In summarizing summa-rizing his report Commissioner Garfield Gar-field speaks of his personal, visit to the oil fields and of the great mass of data obtained by him either personally or through agents of the bureau of corporations. cor-porations. The preliminary study of this was transportation,-which enters so, largely Into the cost of the finished product and hence a moat important factor in competition. Taking- up the subject of the output of refined oil. Mr. Garfield finds that It amounts to about 2.000,000 barrels annually, Of which. the Standard Oil company directly' and Indirectly controls con-trols about 23.000,000 and approximately the same proportion of the. other finished fin-ished products-of petroleum. Continuing, Continu-ing, the report says: "The Standard claims that the location loca-tion of Its refineries and the use of pipe lines are natural advantages r to which It Is Justly entitled by reason of the' energy and foresight of Its managers. mana-gers. While In a measure-that Is true. It must not be forgotten that these advantages ad-vantages were in part obtained by means of unfair competitive methods after years of fierce Industrial strife. - "The development of the pipe .line system by the Standard oil company was tli rerjJLJc. iJiveOiU -rcctKuiA "WHIT T&llroad Companies.' Further-j Further-j more, these so-Called natural t advantages advant-ages have been and are being greatly increased by discriminations in freight rates, both published and secret. Interstate Inter-state and State, which give the Standard Stand-ard monopolistic control in the greater portion of the country, and which so limit competition as to practically prevent pre-vent the extension of the business of any independent to a point which even remotely endangers the supremacy of the Standard. "An Immediate result of this delimitation delimi-tation of the competitive area is shown by the prices of ordinary illuminating oil throughout the 'country. After deducting de-ducting the freight rate, the price of such oil is usually from 2 cents- to 6 cents a gallon higher. in the. non-competitive than In the competitive fields. A reasonable profit upon refined oil is about one-half a ceht per gallon. It is clear that exorbitant profits are obtained ob-tained in the non-competltlve fields. This monopolistic control extends from the well of the producer to the doorstep of the consumer." Explaining more In detail the results of his Investigation Commissioner Garfield Gar-field says: The general 'result of the Investigation Investiga-tion has been to disclose the existence of numerous and flagrant discriminations discrimina-tions by the railroads in behalf of the Standard Oil company, and Its affiliated corporations. With comparatively few exceptions, mainly of other large concerns con-cerns in California, the Standard has been the sole beneficiary of such discriminations. dis-criminations. In almost every section of the country that company has been found to enjoy1 some unfair advantages oyer its competitors, and some of these discriminations affect enormous areas. "Discriminations In the transportation transporta-tion of ol embrace a variety of forms the more Important of which may be classed under the following heads: . "I.- Secret and -semi-secret rates. "2. Discriminations In the open arrangement ar-rangement of rates. "3. Discriminations In classification and rules bf shipment ' "4. Discriminations In treatment of private tank cars." Regarding discrimination In the open arrangement of rates, Commissioner Garfield declares:- "Different methods are used In different dif-ferent places and under different conditions, con-ditions, but the net result is .that from Maine to California, the general ar- I rangement of open rates on petroleum oil is such as to give the Standard an unreasonable advantage over Its competitors. com-petitors. The conclusion Is unavoidable that tne Standard Oil company has had an important voice In the construction of such rates, and this concern Is supported sup-ported by specific evidence developed by the Investigation." |