Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1906-05-04

rate. Local agents often do not know
what the actual rates used on blind
bills are,
SECRET RATES AND REBATES.
IAN especially large number OF Sc
cret rates and rebates IN the transpor-
tation az oil was found IN California.
In all more than SO distinct violations
of tariffs on oil were discovered In this
state, the total concessions To shippers
| and consignces under these rates az
| compared with the published tariffs
| may be safely estimated at about
| 100000 per year OF which amount
about 100000 went To the STANDARD.
The commissioner under the head of
| possibility of further Determinations
| said:
ut seems wholly possible that there
may exist a multitude VI other dscrim-
nations. effected by secret rates or
even by rebates Of great aggregate Inn
p0rtance Involve l1 tnH frihu.
tion OF oil, especially in less than car.
load lots. Tho standard OIL company
ships enormous quantities Of oil In less
than carloads. aud although the dis
tances involved IN such cases are usual
Is comparatively short, the amount OF
freight charges under the high rates
which prevail on such business under
regular tariffs would be very great and
the possibilities OF departure from
these ct argos extensive. II is perfectly
clear ttat the distinction between the
rebate and the secret rate II merely one
OF accounting
Regarding discrimination In the open
arrangement OF rates Commissioner
GARFIELD declares
DIFFERENT METHODS.
Different methods arc used In differ.
ent places and under different condi-
tons. but the net result Is that from,
Maine 10 California, the general ar.
rangement of open rates on petroleum.
oil Is such rs TO give the STANDARD ar
unreasonable advantage over its com
petltors.
THE conclusion IL unavoidable that
the Standard oil company has had an
important voice In the construction or
such rates and this concern Is supported
by specific evidence developed by the
investigation
UNREASONABLE DIFFERENCES
In many cases, he says. there are UNI
reasonable differences between rates ON
oil In carloads and less than carloads.
He charges that discrimination Is prac-
ticed In some Instances In the treatment
Of private tank cars. on this point, he
says:
I'm most sections Of the country all
refineries operating tank cars of then
own receive equal treatment In respect
TO the mileage allowances. on the Pa
cifc coast however most Independent
refineries receive clio cent per mile ana
this on loaded movements only. An en-
Ceptlon is made where the haul exceeds |
500 miles, in which case =, cent per mile
is allowed on the excess mileage over
hat distance. but again on the loaded |
movement only The Union Tank lina
and the Waters Pierce company-al0ne |
Standard concern--are the only oil |
companies operating tank cars on tht. |
lines of the Southern Pacific company |
and the Santa Fe on the Pacific coast
which receive three-fourths cent per |
mile on both loaded and empty cars.
COMPLETES WITH RAILROADS.
Similar determinations are prac-
tised by some of the trans-continental |
systems traversing the northwestern |
states. The advantages Of the Stand
ard oil company would alone give IL |
n highly favorable position In the oil |
industry. To a certain extent the |
policy of railroad rates would be to |
these advantages by giving |
rates TO the smaller refner,
The Standard OH company. through
its pipe lines and its fleets Of oil carry
ing vessels, Is an active and powerful
1T railroads. Except In
the Texas and California fields it has
already taken the transportation of
crude oil almost wholly away from
railroads.
RAILROAD POLICY.
The general policy Of the railroads
with regard to other freight traffic has
been to equali2e conditions Of com
petition IN given markets by the use
~ commodity rates relatively more
favorable to distant producing points
than TO the nearer producing points.
But il appears that In the case of the
oil industry. the policy has been gem
orally reversed and natural disadvant-
ages of the Independents have been
increased