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."
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