The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-03-11

Germs could, and was favored Iby discrimina-
ton In that respect, there certainly was no
benefit for the others. As for the Standard
that was another matter. OF late the ship
pers have begun to see through the hole in
the milestone.
A leading independent oil-dealer explained
the result Of their observations in this way
YESTERDAY:
''Scon after the passage of the interstate
commerce law the Standard Oil Company
began TO Increase its ankage capacity on this
Coast 1t erected an enormous tank over
in Oak land-a tank that holds 10000 gall
Ions. It wanted to build similar one here,
but the Supervisors would not hear OF 1t, so
il erected few smaller ones Taking this
tankage capacity with what it has in San
Jose, Los Angeles and various other places
In the State and the total is about 100000
gallons.
"Of course, this gave the Standard the
advantage of being able to ship here in i'm
mense quantities-trainloads, in fact-and
hold its oil in tank for a considerable
period, say one to two months. Oil rates
by rail had always been firm up to that
time, but then began wonderful seeSaw-
ing. The rates would drop suddenly from
81 20 hundred pounds TO ssh cents. Then
they would come back again. Then they
would drop to 81 cents, and before we could
get ready TO order our shipments into tho
cars at the East up would go the tariff to
81 20 or 81 %.
1--WE did not know what to make OF il.
We were al at sea. 1t struck US as being
most extraordinary that such great fuctua-
tons should be made in rates when they had
been 80 stable for years. Why, during the
big cut-rate excitement Of 1885, when
feathers and iron, silks and clothes-pins
were all taking fat rates at So ton, the ell
rate remained steady on the tariff at 81 20
hundred. When one innocent and unln-
formed freight-agent made cut at that
time and secured a shipment OF ffty-twO
carloads his company cepudiated the con-
tract, aud was willing 10 stand a lawsuit
rather than cut the rate against the STAN
dard, which was getting 72I2 cents hun
cred. The fluctuations worried US. We
lost much sleep over them. The great
trouble was that We could not understand
them.
AT last one bright man among the indie
pendent 0il-dealerS made a big discovery.
He found that when the Standards tanks
were full railroad rates were away up, and
that just about the time they were begin
ming TO run dry and new supply was
needed the bottom would fall out OF the
tariff.
" The mystery was solved. II was the
cid game Of discrimination in favor of the
Standard over again. The managers here
knew that as soon as we Independent
dealers got ready to take advantage of the
low rates with them-which was rare ill.,
deed, as we had no forewarning of the
changes to be made-they would do us
small good. for we had no such tank age
capacity as they had. Then, too, by the
time we had GOT in several carloads at the
reduced rate and the Standard had got in
several trainloads the rates would bound up
again.
During all this time the Standard was
sending nearly all its oil here in cylinder
tankcars. These are fat cars with 4 long
cylinder on top of them. Before the inter
state commerce law went into effect The
Transcontlnental Association charged the
Standard nothing for the return Of their