Morgan County democrat. (Versailles, Mo.) 1900-1906, 1906-05-11

leased only ON such terms and for
such periods as will enable the gov.
eminent to entirely control them.
Oarfsla's Report.
Washington. - In summarizing
his report Commissl )ner Garfield
speaks of his personal visit to the
oil fields, and Of the great mass Of
data obtained by him either personal.
ly or through agents of the bureau Of
corporations. The preliminary study
of this IA transportation, which Ell.
tiers 80 largely into the cost OF the
finished product, and hence a most
important factor In competition.
Taking up the subject of the output
of refined oil, Mr.. Garfield finds that
1t amounts to about &c, 600, 900 barrels
annually. of which the Standard Oil
Co., directly and Indirectly, controls
about $4,000. 600, and approximately
the same proportion Of the other I'm.
ished products Of petroleum.
Continuing, the report says:
The Standard claims that the location
OF It's retineries and the use OF pipe lines
are natural advantages to which 1t 10
justly entitled by reason of the energy
and foresight of Its managers. While in
"A measure that Is true, II must not be
forgotten that these advantages we've In
part obtained by means of unfair COM
petitive methods after years OF fierce In.
dustrial strife.
The development OF the pipe line sys-
tenn by the standard OIL Co. was the re;
SUIT OF special agreements with railroad
companies. Furthermore. those so-called
natural advantages have been, and are
tions In freight rates, both published and
secret, interstate and state. which give
the Standard monopolistic control In the
greater portion OF the country. and which
SO limit competition as to practically pre-.
vent the extension OF the business OF
any Independent to q point which even re.
motely endangers the supremacy OF the
An Immediate result OF this delimitation
OF the competitive area Is shown by the
prices IbLonsba of ,6 Sr' conriry. "' Hfier dedEuc,i ns
the freight rate. the price OF such oil
Is usually from two cents to five cents
a gallon higher N the ed 1n-compe,, sane
able profit upon refined oil Is about one
half a cent per gallon. It Is clear that
exorbitant profits are obtained in the
noncomretitlve fields. This monopolistic
control extends from the well OF the pro.
ducer to the doorstep OF the consumer.
Mr.. Garfield cites the fact that the
New York Central Railroad Co. was
the only one which refused for itself
and affiliated lines to give access to
records of state rates.
At the beginning of the investiga.
ton. he says, the Standard Oil Co.
denied that it had obtained in recent
years, or was nov obtaining any re
bate or other transportation discrim'
nation rs against its competitors, and
yet, he says, q most careful re-
view of the facts and the explanations
leads to the conclusion that the Stand
ard Oil Co. has habitnally received
from the railroads, and is now rcceiy.
ing secret rates n other unjust ana
illegal determinations.
In 1904 these secret rates saved to
the Standard Oil Co three-quarters OF
a million dollars, representing the
difference between the open rates and
the rates actually paid.
These determinations" he says,
have been so long continued, so Sc
cret. so ingeniously applied to new
conditions Of trade, and so large in
amount as to make it certain that
they we're due to concerted action by
the Standard and the railroads.
He says further that the Standard
Oil Co. is receiving unjust Giscrimi.
nations in the matter of open rates, the
published rates from the leading
Standard shipping points being rela-
lively much lower than rates from the
shipping points of its competitors.
The report concludes as follows:
Nevertheless, the widespread discrimi-
nations In open rates still in force leave
the independents In serious disadvantage.
touched state shipments from distrib-
uting c%enters: particularly In less than
carload lots. The few instances examined
suggest the probability of determinations
on such shipments which. taken in con-
nectlon with through traffic. may result
In Determinations on interstate business.
! have cited these particular instances
70 show the various methods by which
determinations are obtained, and 10 call
particular attention to methods which, IL
legal. are mere devices to obtain exactly
the same result az would be obtained by
rebates paid on interstate business. Any
freight Discrimination. whether II be state
or interstate; tends to give control Of
makes monopoly possible. II existing law
merely prohibits a special device for OBJ.
aiming discrim,nati"n ana permits re
ferent way. then the legislation Is to that
extent a sham.
This investigation has shown very cleav-
" one glaring defect In the Interstate
commerce law. viz: The method OF filing
and publishing tariffs. Although a tariff
or n rate has been filed with the commits
sion In compliance with the terms of the
law. none but the favored shipper may
know Of its existence. Tariffs may be
manner ns to make II practically impos.
siblc for the ordinary shipper to find
rro"IrcG 10 'I he made ms t"I pa state and s hIe = mps
Use such rates ~ combination. with In.