The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-04-07

shares, but stockholders of the Stand
ard company are not a majority of the
board of directors of any railroad, so
far as am aware. and therefore can
not control.
1.-The question of railway rebates
and Standard control of railways was
Investigated by the United States in
dustrial commission in 1900 and they
reported no such facts. Members of
the Standard and the railways were
questioned in relation to these sub
Jects. 1t was shown that prior ITO the
enactment of the interstate commerce
law the rebate system was universal.
Railroads made their nominal rates
higher than they expected to obtain
from regular shippers and the amount
of actual freight to be paid was a
matter of contract. Each shipper
made the best terms he could. The
Standard did not invent this system,
but it found it existing and could not
do business without submitting to it.
Like all other shippers, it made the
best terms it was able to make with
the railroad. It's rednerfes were To-
Gated at points where it could take ad-
vantage of railway competition. It
also strove to give equivalents for re-
ductions in freights. 1t shipped not
only carloads, but trainlOads. It pro-
vided terminal and other facilities. and
assumed all risks of loss. Public opin-
ion, more enlightened in these days
than in those. may have discovered
that this was all wrong, but at that
time the business man who did not
accept that method would better have
closed his shop.
THE stories told of the immense ag-
gregate of the rebates paid to the
Standard were shown by that investi-
cation to be untrue. A large portion
of the rebates paid were not discrim-
inatOry. They were paid to all ship
pers who shipped exclusively by rail.
1t was impossible for any shipper to
know with certainty what rebates his
competitors were paying.
1.-THE Standard often found that its
competitors had been paying less rates
than it paid. Furthermore, the public
obtained the advantage of the low
rates received a reduced price for
refined oil kept pace with the reduc-
ton in rates, whether this reduction
was by way of rebates or otherwise.
And the price at which the public for
many years has been obtaining oil
would simply have been impossible
had not shippers forced the railways
to reduce their rates, which they did
first by rebates and later by open
schedule.
1.-THE system of rebates has happily
received the condemnation of law. The
Standard welcomed the change as
beneficial one. But to say now that it
should not have obtained the best
rates under the old system which it's
position enabled it to obtain is an inn
possible counsel of perfection.
'sThe evidence before the industrial
commission shows very clearly to any
unprejudiced mind that since the en-
actment of the interstate comm cree
law the Standard has obeyed it in
every particular The evidence of the
Standard managers and freight agents
of all the leading railways of the
United States, to the effect that by no
rebates arrangements, devices, or
plans of any character had the Stand
ard received less rates than other
shippers.
1T is true that allegations to the con
trary were made before the commits
sion; but these We're founded upon sur
mise, and We're not sustained by proof
Neither did the commission find them
to be true. Any candid man who will
read the evidence must be satisfied of
the truth of the facts sworn to by the
Standard Oil company, -corroborated as
they are by the officers and agents Of
the railroads themselves"
On the subject specially alleged by
DR.. GLADDEN., Howard Page, the freight
agent Of the Standard Oil company, tes-
tilted as follows:
Q.-Is it fact, as has been frequent
ly stated, that over lines of railroad
where the Standard Oil has very large
! shipments the rates on oil are frequent
/ " made, rela lively speaking, lower than
over other roads, where the business
rivals OF the standard Oil company s
/ interests are relatively small and that
/ this difference in rates to the advantage
of the Standard Oil is brought about by
1 the influence of the Standard Oil COM
/ pany officials
A.-That is absolutely not true, sir.
In the first place. I do not know any
/ railroad on which competitors OF the
/ Standard Oil company ship that we do
not ship on ourselves, and the oil rates
Of the United States from the various
oil shipping points are on basis. In
other words, the same rates apply from
all the Pennsylvania oil fields, both east
and west. and the same is true of the
Lima field and, while we may not be
located at the very point some compet-
itor is, he has the same rate from his
shipping point in that field that we
| have from our shipping point in the
same FIELD.
Q.-Are the Standard Oh company Of