Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-05-04

exist multitude of other Determinations
effected by secret rates or even rebates OF
great aggregate Importance involved in the
local distribution of oil. especially in less than
carload lots. The Standard Oil Company
ships enormous quantities of oil in less than
carload lots, and although the distances
involved in such cases are usually compare
lively 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 charges extensive.
1T Is perfectly clear that the distinction
between the rebate and the secret rate Is
merely one of accounting"
Regarding discrimination In the open ar
rangement of rates, Commissioner Garfield
declares:
Different methods are used in different
places and under different conditions, but
the net result is that from Maine to Cali
fornia the general arrangement of open
rates on petroleum oil is such as to give
the Standard an unreasonable advantage
over its competitors.
THE conclusion is unavoidable that the
Standard Oil Company has had an import
ant voice in the construction of such rates
and this conclusion is supported by specihc
evidence developed by the investigation.
In many cases. he says. there are unreal
sonable differences between the rates on oil
in carloads and in less than carloads. He
charges that discrimination Is practiced In
some instances in the treatment of private
tank cars. On this point he says:
I'm most sections of the country all re-
finers operating tank cars of their own re-
ceive equal treatment in respect to the
mileage allowance. On the Pacific coast
however, most independent refiners receive
but six-tenths cent per mile, and this on
the loaded movement only. An exception Is
made when the haul exceeds 800 miles, In
which case three-fourths cent per mile is
allowed on the excess mileage over that
distance, but again on the loaded movement
only. The Union Tank Line Company and
the Waters Pierce OIL Company-also a
Standard concern-are the only Oil COM
the Southern Pacific Company and the
Santa Fe, on the Pacific coast, which re-
ceve -fourths cent per miles on both
loaded and empty cars.
allowance are practsed by some of the
transcontinental systems traversing the
northwestern states.
''The advantages of the Standard Oil
Company would alone give it a highly
favorable position in the oil industry. To a
certain extent, a natural policy of railroads
would be to neutralize these advantages by
giving favorable rates to the smaller re-
finer The Standard Oil Company. through
Its pipe lines and its fleets of oil-carrying
vessels, L. an active and powerful COM
petitor of The railroads Except in the
Texas and California fields. 1t has already
taken the transportation of crude oil al
most wholly away from rail carriers
'"rhe general policy of the railroads, with
regard to other freight traffic, has been to
equalize conditions of competition in given
markets by the use of commodity rates
relatively more favorable to distant produc-
ing points than to the nearer producing
points. But it appears that In the case of
the oil industry this policy has been gen.
orally reversed and natural disadvantages
OF the independent have been enormously
increased"