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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Jan. 29, 1907)
THE MORNING OREGON IAN, TUESDAY, JANUARY 29, 1907., BOUNDLESS REACH OF STANDARD OIL interstate Commission Says It Rules Price From Well to Consumer. RUINS , ALL COMPETITORS Ownership of Pipelines Its Chief Konro of Strength DfctaK'S to Itailronds, Spies on Independ ents and Has Xo Conscience. WASHINGTON". Jan." 28. The Inter- Ptate Commerce Commission sent to Congress a. report of the Investigations made by It under the Tillman-Glllcsple , resolution concerning' the relations of common carriers by rail to the produc tion and distribution of oil. The report covers - the distribution of petroleum and its products east of the Mississippi RJvr, and. incidentally, the Kansas and Texas fields. T 1 1 report points out generally the methods by which the Standard Oil Company "ha9 built up and perpetuated- its monopoly." It is asserted that "the ruin of its com petitors has been a distinct part of the policy ot the Standard 0-- Compfny In the past, systematically and persistent ly pursued. "Ko instance." the report says, "is found where any railway company has been interested in oil lands or in pe troleum production, and only one in stance is shown where officials of a allway company fere interested In the production, and sale of oil. t This relates to certain officials of the Bal timore & Ohio Southwestern Kail road having owned stock: of the A r grand Re fining Company, which was on their recommendation afterward sold to' the Standard Oil Company, and the lubrl-cutti-isr contract, which the road trans ferred to the Galena Oil Company, a Standard Oil Company. It Profits Exorbitant. ' "The Standard Oil Company largely monopolizes the handling of petroleum from the mouth ot the well until it is old to the retailer, and sometimes to the consumer, and undtr ordinary cir cumstances its margin of profit Is very large." Estimates made in the report show a profit on refined oil from the Sugar Creek refinery at Kansas City, of from 5 to 8 cents per gallon. A much higher profit is indicated for gasoline. The sale of refined oil from the large standard refinery at. Whiting is correspondingly profitable. The report further says: "The evidence shows little basis for the contention that the enormous divi dends of the Standard Oil Company are the legitimate result of lis economies. Except for its pipe lines, the Standard has but little legitimate advantage over the independent refinery. "The Standard buys advertising space in many newspapers which - it fills, not; With advertisements,' but with reading matter, prepared, by. agents kept for that purpose and paid for at Advertising rat?s .as ordinary news. The assumption is that this .literature furnishes many of the Ideas touching the g-reat benefits conferred upon the public' by the standard OH Company. Control Price ly Owning Pipe Ijlnes. "Possession of the pipe Unea enables the Standard absolutely to control the price or crude petroleum and tile price which its competitors in a given lo cality shall pay. It can raise the price in 6na locality and obtain its own oil from another, and reverse tlie process when it desires to do. so. Whoever con trols the avenues of transportation ot the raw material or of the refined product can1 speedily drive his com petitors out of existence, and the pro duction and distribution of petroleum is no exception to the rule." The pipe line system of the Stundard. the report continues, is not a natural, but rather an artificial advantage. It is argued that the reason why long pipe lines competing with those of the Stand ard have not been provided is found In obstacles in the way of such undertak ings hating- been opposed by the rail roads, whose right of way has generally stood as a Chinese wall against all at- tmpts to extend pipe lines. Ordinarily, It is said, the Standard has not received rebates in recent years, so far as has been discovered, but It has nevertheless pnjoyed secret rates possessing- all ot the elements of illegal rates and the advan tages so obtained over independent ship pers have been of very great value to that' company; Numerous instances of discrimination In favor ot the Standard resulting- from the published railway i IROKEN f - ; 1 : 1 r"!-"""111'"1 1 '' ' "" .""i I FVkM rvvl ' ,it iT 1 o !; - 5 S ! fe ri J- - 1 rates were found, says the' report. In this connection the following is an In stance given: K Railroads Follow Dictation. , "A low rate of 10 -cents per 100 pounds upon petroleum and Its by-products ex isted ' for many years from Neodosha, Kan., where the Standard operated a re finery, to Kansas City. This was for the Interest of the Standard; tout when the Standard constructed Its refinery at Sugar Creek. Kansas City, and connected it by pipe line with the Kansas oil wells, the rail rate was advanced from 10 to 17 cents per 100 pounds. While the railways In sist that this was not done at the In stance of the standard, the sisrnineant fact remains in tills and many other cases called to the commission's atten- Hon that the rate was not changed until It came to be for the interest of the Standard that It should be changed, and It was changed a.s that company natural ly would desire." In discussing the assertion contained ill the report that "'the ruin of its compet itors has been a distinct part of the j oil cry of the Standard OH Oompany, the Com- mission says one metnoa fcas been the organization of a perfect system of espi onage over the shipments of Its compet itors, resulting In knowledge as to the destination of every car of oil leaving the . refinery ot an Independent, The Standard agent at the destination, says t he report. Is held responsible If the in dependent oil is sold. Special Tuna to Fay Spies. "It does not appear. continues the re port, "that the railroad companies have directed the furnishing- of this in forma- tion, or that the practice has teen sane- tloned by superior officers of the roads, but It does appear that such Information is systematically obtained from railroad employes. The testimony shows that the Standard at one time. If It does not now, devoted a fund to the purpose of obtain ing this information. It has frequently happened, -when the supply of independ- ent oil In a particular territory was low and a shipment was peculiarly necessary, that the shipment has unaccountably gone astray. Information also appears to have been given the Union Tank Line, a creature of the Standard, concerning the whereabouts of its cars, while such In formation was not furnished to other owners of tank cars, and some discrim ination In tank car mileage in favor of the tank line Is shown for one railroad. It Is asserted that ft la the practice of the Standard, whenever a competitor erects, a storage tank to which the oil Is transferred from the tank car, to re duce the price of oil in that locality to such a point as to make the business unprofitable to such competitor, while prices were maintained in other locali ties. There was much complaint that the railroads allowed the Standard to erect its tanks at convenient points on the right of way and declined to accord this privilege to independent refiners. The Commission saya that it is satisfied that such discrimination has been very gen erally practiced in the past. Cinclics Railroads on Lubricants. The report shows that "at present every considerable railroad in the United States is buying of the Galena OH Company, one of the Standard companies, most of Its lubricating, and signal oils, the prices paid for lubricating oil, which is of three grades, bein? substantially the same to the various railroads. The contracts gen erally contain a guarantee to the road that the cost of lubrication shall not ex ceed a certain sum per mile, or engine mile, and provides for oil inspectors ap pointed by n.he oil company to supervise the use of the oil. The Galena com pany is rarely called upon to pay anything- under tfie guaranty, and the prices obtained by the oil company are extrava gantly high. Oils of the same grade could be bought in the open market for about one-half the Galena Company's prices." Fake Iudependent Companies. The report severely arraigns the Standard's- methods of competition,, saying:. "The Standard has repeatedly, after be coming the owner of a. competing - com pany continued to operate it under the old name, carrying the Idea to the pub- lie that the company was still independ ent and competing with the Standard. It has used such purchased or Independ- ently organized companies to off com petitors by such companies reducing prices. The operation of such fake in dependent concerns has been one of Its most effective means of destroying comr petition. The Standard has habitually reduced the price against its competitor In. a particular locality, while maintain ing Its prices at other places. When com petition was destroyed, It advanced or re stored former prices. The Standard has sold different grades of oil at different prices from the same barrel. It has paid employes of independent oil com panies for information as to the business of those competitors and has paid em ployes of industrial companies to secure the Introduction of Its oil in preference to that of its competitors. It has fol lowed every barrel of independent oil to its destination. Its ascents are instructed to secure customers at any sacrifice. It has tampered with the oil Inspectors in different states.' The laws of several states concerning the inspection of oil are singularly defective, and this has been turned to profit by the Standard. "The. Commission's only knowledge of the competitive method of the Standard Oil Company is obtained from evidence taken under oath In this investigation. Ttie Standard was given permission to ex plain or rebut the facts, "This, if true, demonstrates that the competitive methods of the company in the past have been unfair and disreputa WIRES NEAR THK FIRST GERXA!tV STANGEUCAt CHC ble. ' Its motto has been the destruction of competition at any cost, and this pol icy has been pursued without much refer ence to decency or conscience, and It is significant that the larger independent re finers sell the greater part of their prod uct in foreign countries. One indepen dent testified that IB per cent of his prod - uct went abroad, and said that he could compete with the Standard in Germany. where Us methods, as followed In this country, would not be tolerated, but that he could not compete with it here.' On the question of remedies, the report says: , "More than anything else the pipe line has contributed to the Standard Oil mo nopoly, and Its supremacy must continue until its rivals enjoy the same transporta tlon facilities. The amended act to regu late commerce makes the existing pipe lines common carriers subject to' that act, and the power- to prescribe Just and rea sonable rates, regulations and practices. after complaint and hearing, is conferred upon the Commission. But the pipe line tarilTs filed with the Commission are al leged to be of.no actual advantage to the Independent operators. The Commission only can act upon these schedules alter the complaint has been made challenging specific rates, regulations or practices. Some complaints are now pending. How Tar the amended authority .win prove ad equate to the correction, of such injustice as now exists In respect to this traffic re mains to b-e seen. Difficult o Undo "Wrongs. "Since in the past petroleum rates have not always been established to promote, but often to check trarflc. and the tarlfTs are more or lefs permeated with dis criminations In favor of the Standard Oil Company, having been built up during- a series of years In that view, it may be that this discrimination will never be eliminated by any. process of complaint against a specific rate or practice. Judg ing by the past, discriminations as to this traffic may arise more frequently than those now existing can be routed out by that method. As to no other important traffic ift there1 an approach to the mo nopoly of the Standard Oil Company In that of oil. Under these . conditions it may become necessary to the uprooting of established wrongs and the prevention of others that the Government shall fix In the first instance the rates and regula tions for the transportation of this traf fic. This method has been adopted by the Legislature of one state. It probably . will be found necessary to disassociate In the case of oil. as in that of other com modities, the function of transportation from that of production and distribution. What other remedies in addition to those already provided it may be necessary to prescribe can be better determined in the near future by the results of experience in administering the present law." BURIED UNDERTHE RUINS Three Firemen Meet Death When Burning Building Falls. BUFFALO, N. Y., Jan. 25. Burled un der tons of Ice-coated debris of the eight-story Seneca building at 101-109 Seneca .street, destroyed by fire today, three firemen are probably dead or so badly Injured that they will die be fore aid can reach them. About twenty Ilremen. Including: the three missing; men, were on the roof of the Heywood building, adjoining the Seneca, fighting against the spread of the flames, when two thick brick walls of the Seneca building: collapsed. Tons of debris from the crumbling walls crashed down on the roof of the lower Heywood building;, etolnar throug-h the roof and carrying inr after, floor Into the basement! Not one of the: twenty men. escaped without injury, but half of them were able to fight tiieir way out and to firlve aid to their less for- tunate comrades. The rescuers worked all of. the af ternoon, but no trace of the missing; men could be found. a nifrht fell, electric llgrht wires were strung; into the ruins and tonight the work of res cue was kept up. ' THE DAY'S DEATH RECORD Edward M. Teall, Chicago. CHICAGO, Jan. 2S. Edward McKIn Btry Teall. for a number of years pres ident of the Chicago Underwriters' As sociation, died last night after a. month's illncs of grip and resulting complications. Mr. Teall was born at Albany, N. Y., on July 27, 1839. At the time r.t his death he was president of the board of trustees of the McCornilck Theological Seminary and president of the Chicago Relief and Aid Society. Col. rtlolinrd Blue, Indian Territory. BARTLKSVILLB. I. T., Jan. 28. Colo nel Richard Blue, formerly a well-known Kansas politician ahd attorney, died sud denly at his home here today, aged 65 years. In 1894 he was named as Represen- tative-at-large from Kansas. Professor AV. S. Jackson, Chicago. CHICAGO. Jan. 28. Professor W. S. Jackson, dean of the School of Education at the University ef Chicago, died today after an Illness of les than 24 hours. '' RCH. TENTH AND CXAT ALL CHARGED SAME Southern Pacific Dock Toll at Golden Gate. LANE CONTINUES HEARING FrclRht Pays Wharfage Which Ke-sr Touches Wharves Railroatl Makes Water Competition Exense for Charging tho Extra. Rate. SAN FRANCISCO. Jan. 28. Interstate Commerce Commissioner Lape today re sumed Iri this city his Inquiry into the affairs of the railroads Involved In the Harrlman merger and. the fleet such merger lias bad upon competition be tween the lines affected. The case pre sented today was designated the Pacific Coast Jobbers against the Southern Pa- ClflC Company, The railroad was repre sented by Peter P. Dunne and the ship pers by Settx Mann. The shippers con plained that they were charged 5 centa wharfage tolls on every ton or freight that entered the city, whether it came across the bay or over the coast line. In which latter case there was no lawful wharfage tax to pay. On the coast line freight enters San Francisco over the county peninsula. It was alleged that this tax was a discrimination against the commerce of San Francisco as com pared with other terminal points on the Coast Mr. Lane claims San Francisco as his home city, and, being well Informed on the local situation, took an active part In the examination of Witnesses. 9Xr. Mann made a statement of his case, and General Freight Agent G. W. Luce of the Southern Pacific was a witness. He was asked If the Southern Pacific divided the whole amount received "with connecting lines, or retained the wharfage collected and divided the remainder.' He replied that the toll charge of 5 cents per ton was not divided. Some statistical testi mony and arrangements for filing brier a in the case completed the session. Mr. Lane said that oral argument be fore the Commission sitting en banc at Washington in June would be heard if the parties desired. The merger question will be taken up tomorrow. When the. sitting began, IT. r. Plils bury asked permission to intervene in the hearing on behalf of the Santa Fe, and permission so to do waa granted by Mr. Lane. Mr, Mann then commenced a state ment of his case against the rail road. He stated that the Southern Pa cific has always charged shippers of freight a toll of 5 cents a ton, which it Is compelled to pay the State Board of Harbor Commissioners for use of the waterfront. Jupe 1, 1901, all transcon tinental freight lhad come into this city through Oakland, and had. therefore, paid this toll. In June. 1901. the Southern Pacific completed its Coast line division, connecting with the transcontinental lino at Los Angeles, and interstate freight was brought into this city by this division. Although it does not- cross by ferry, it is nevertheless mulcted & cents a ton., as is freight from Oakland. '"-.'.( In- his opening statement Mr. Dunne, for the railroad, admitted that the case, as stated by M r. Man n, seemed bad for the Southern Facific but claimed that the "whole statement turns on a contract Mr. Mann seeks to make, showing the con sistency of the company." "Freight rates," xhe said, "are regu- lated by the cost of water transports- tion. Rntes must be made higher to Intermediate points In order to pay costs. At water points they cannot charge BUCh rates. They cannot put these rates too low that would react on intermediate points but they must be lower than at Intermediate points. Kates at water points are not remu nerative. These." Dunne paid, "are ele mentary principles of traffic law." - - Mr. Dunne continued: "In putting the rate as high up as traffic will bear at water points, the company simply- takes what It can get. Years ago, Mr. Stubbs.. who pioneered this rate basis, made contracts with merchants for handling traffic and fixed rates by computing the cost of shipment by water, marine Insurance, Interest, state toll, plus something for superior equipment. The state toll Is a part of the tax to be included, even If no freight crosses the state wharves. The company Is not collecting: state toll as state toll, but the aggregate. Includ ing what water carriers pay. The water competitor pays this toll, so we are compelled to charge thl3 toll In the state." The two opposing attorneys took Is sue on the fact that all Sunset freight. both gulf and rail, coming through the El Paso gateway, reaches this city by the coast division. BTBEKT8. Olds, Wor tman Sth,6thAND WASHINGTON 1 Closes THIS IS Three More to Be Sifted From Among 100 Men. PRISONER IN HIGH SPIRITS Whole Family Marshaled Behind Xlm to Quell Stories ot Dlnsen- Blon Delnias Throws Light oil Line of lefense. NEW YORK, Jan. 28. The Jury to try Marry !:. Thaw for the Killing: of Stanford White is nearly completed. When court adjourned this evening there were nine men in the jury box, one having been added during the morning session and one Just before adjournment aj 5 o'clock. It Is ex pected that the taking of testimony will begin Wednesday afternoon. Kifty talesmen were examined today and so rapidly were the remaining members of the special panel disposed of at the morning session that at noon recess orders were hurried from the court for the summoning of an addi tional 1(10 men, who are to report be fore Justice Fitzgerald tomorrow morn ing. This will make a total of 300 men thus far summoned. Of the original panel there remained today only 35, and It was not considered that this number would be sufficient out of which to select the three jurymen necessary to make the necessary 12. Of the So men examined today, 43 were excused on doctors' certificates, or because they had formed opinions which were too sttong to be shaken by the testimony, or for various other rea sons sufficient to Incapacitate a man for service in capital cases. Five talesmen were challenged peremptori ly, the stste leading In the exercise of this privilege with three challenges. The two men of the 60 who proved acceptable to both sides were Charles I. Newton, a retired railroad official, who Is perhaps 5 years old. and L,ouls Haas, the New York representative of a Philadelphia ' wholesale candy con cern, who Is about 30 years of age. In accepting the latter, district Attorney Jerome dwelt for some time o-n the question of reasonable doubt, question ing the talesman searchlngly as to his Ideas of the difference between a par tial doubt and a positive doubt. Mr. Haas seemed to incline to the idea that a conviction for murder In the first de gree should be voted only when such a doubt as one might feel in regard to some vital Issue in tils own life had been removed by the evidence. This seemed to satisfy the District Attorney. Mr. Jerome continued today to base bis examinations of the talesmen on the belief that Thaw" lawyers offer two defenses, one of emotional Insanity at the time of the shooting and the other the "unwritten law." All of the defendant's family were in court today. Mr Harry Thaw and her companion. May McKenzle, were Yo u May Need It Ask your doctor about the wisdom of your keeping Ayer's Cherry Pectoral in the house, ready for colds, coughs, croup, bronchitis. If he says It's all right) trien get bottle pr it at once.' Why not show a little foresight in such matters? Early tf mm, early eur. Ml THAW Wa'pnbllab ma fbnanla Otxr 2tk A Next Saturday Let Nothing Interfere With Your Clearance Plans The Time Is Short THE LAST WEEK the first to arrive. Then came Mrs. William Thaw, mother of the prisoner. accompanied by hnr two daughters, the Countess of Yarmouth, and Mrs. George Iauder Carnegie. Edward and Joslaft Thaw and Mr. Carnegie were also present. The family sat closely Kronped in two rows of chairs Just back of. the prisoner. As usual, they seldom' spok9 to one another. Thaw was delighted when he saw all of his family In court and appeared to be in high spirits throughout the day. He had strongly resented the state ments that there was dissension be tween Tils wife and sister over the for mer's intimacy with Miss McICensie. Miss McKenzie today declared there waH absolutely no truth In the report that there had been any such dissen sions. . Justice FMtxgec-ald. has decided on stem measures to curb the mere sight seers. He has Issued orders that at no time dut-in the trial nhalt spec tator ttn admitted, but only thos hav ing positive business in the court. This order has been made imperative, and the public and court officers have been told to obey it to the letter. I . M Deltnas, one of Tha.w coun sel, stated today, regarding the de fense? Dring Your Eye TrouDies To Experienced Mea if You Want tho Best Service. OREGON OPTICAL CO. 178 Fourth Street, y. M. C. A. Bldg. Free Eye Examination by the Latest Scien tific Appliance. $550 PlANOS FOR $368 $475 PIANOS FOR. $312 $325 PIANOS FOR $218 $225 PIANOS FOR $137 REDUCED PRICES TO THE MEMBERS OF EILERS CO-OPERATIVE PIANO BUYERS CLUBS Bee here, Mr. Bnsyroan, have you ever stopped to think about that pianoless home of yours? Didn't you think your wife would appreciate a little music now and then? Suppose she doesn't play some of her visiting friends do. There's something wrong in a home without a piano nowadays. Can't afford it, yon say? See here, do you know that $1.25 a week will pay for a pretty good instrument, if bought now, through one of our Co-operative Clubs? Greatest chance in an age, to buy a fine piano for little money and on little payments. Bet ter investigate it right away. Open your heart good for once surprise your'wife make her really happy, and she won't mind the rainy weather that keeps her tied to the house so much now. Call, write or phone for all the tacts about this great Surplus Stock Co-operative Sale. We'll present them to you in such a way that you won't be annoyed or bothered a particle. And it won't put a cramp in your pocketbook, either. THE HOUSE OF" HIGH F.ST QUALITY BIGGER, BUSIER AND BETTER THAN EVER 353 WASHINGTON. CORNER PARK & King STS. J I Night "Tou may say that it will crime strictly within the statutes of New York. There is no higher law in this state, and nil this talk about the 'un written law' is bosh. Nor can I see the efflcary of a plea of emotional insan ity. There is really no such thing. A man may he temporarily insane, but that Is quite another m.itter." mi ummm Positively cured ty tliea Little rim. They alio relieve Distress from Dyipepaa, Indigestion and Too Hearty Eating. A per fect remedy for Dizziness, Nausea, Drowd- ness. Bad Taste in the Mouth, Coated Tongut Pain in the Side. TORPID LIVER. They Regulate the Bowels. Purely Vegetable. Cmall Pill. 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