Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1906-05-08

Ing to prorate, virtually kept indie
pendent refners from using all rail
routes. The refusal to prorate in.
creased the rail rates from the west
from to 10 cents per hundred
pounds. These railroads do prorate
on all other commodities; their re.
fusal to do so in the case of oil
amounted to imposing a substantial
TAX on all consumers In the region
they cover, and is also heavy dis.
elimination against the smaller refin-
ers.
(2) The Standard Oil company has
been able to absolutely control for
many years the sale of oil in the
northeastern part of New York and in
a portion of Vermont by means of
secret rates from its refineries at
Clean and Rochester.
Pennsylvania Railroad Rates.
The Pennsylvania railroad has Civ
en- the Standard rate of cents
| barrel from Olean, N Y, to Roches-
ter, while the Independent refineries
situated In territory adjacent to Olean.
were given rate Of SO cents barrel.
BY means of this 9.cent rate, in com
bination with rate from Rochester
to Norwood, N. Y. "a virtually secret
and very low rate from Norwood, N.
r., to Burlington, and secret local
rates therefrorn, the Standard has
been able to supply central and north.
ern Vermont with oil at rate of from
l5 to Fl cents per hundred pounds,
where as no independent refiner could
reach that territory from western
Pennsylvania save by rate varying
| from SO to SO cents per hundred
pounds.
The saving to the Standard during
1904 by the secret rate from Olean to
Rochester alone was $115,00O This
and other less important rates
from Clean were unknown to
the independent refiners, and
were not published on the
ground that they were wholly state
rates; yet In fact they were used for
oil consigned to points beyond the
state boundary of New York Furth-
ermore, all the shipments from Clean
on these secret rates were blind-billed
ri. e., the rates were not shown on
the waybills
Rates in South.
81 The Standard Oil company has
maintained absolute control of almost
the whole section Of the country, south
or the Ohio river and east of the Mis-
sissippi by means of secret rates and
open Determinations in rates from
Whiting, Ind.
For example, the published tariff
rate from Whiting, Ind, the great west
ern refinery Of the Standard, to Bir-
mingha1n Ala, was Al cents per hun
dredi pounds. For at least ten years,
the Standard, by means of secret
combination of rates by way or Grand
Junction, Tenn, over the lines of the
Chicago and Eastern Illinois, the Illi-
nois Central and the Southern railway,
has shipped oil to Birmingham for
291s cents The Toledo competitor,
no farther distant, had to pay 471s
cents.
| A great area in the south has been
reached by this same secret combina-
ton, at rates averaging one-fourth less
than published rates. The total saving
to the Standard on these rates has
been about $4,000 per year
Again, the open rate from Whiting
to Evansville, Ind. has been for many
years II cents. The Standard has for
about ten years shipped oil to Evans
vile for local use and for many points
beyond in the southeast at socalled
state rates Of cents and 81 cents.
The freight paid by the Standard in
this case has been about $4,000 per
year less than the open rate.
The rates to this same territory from
the independent refining points at
Toledo and Cleveland were from to
% cents per hundred pounds, or from
| u to 11a cents gallon higher than
the rate received by the Standard
The records of the Chicago and East
ern Illinois Railroad company show
plainly that these Grand Junction and
Evansville rates we're intended to be
secret, were given for the sole benefit
OF the Standard and we're handled as
secret rates with the knowledge of
Standard officials.
Rebates in Illinois.
| ca The Standard Oil company has
for at least ten years shipped oil from
| Whiting to East st. Louis, ILL.,, at a
4 rate Of 6 or 81 cents on three Of the
five railroads running between those
places, while the only duly published
rate on all roads has been 18 cents
during all that period. The saving to
1 the Standard amounted to about $240,-
4 900 in 1904.
For many years East st. Louis has
. been the gateway for oil shipments by
the Standard into the southwest. The
rates from the Independent refining
points of Ohio to East ST. Louis have
| been about IL cents higher than the
rate from Whiting, whereas on other
commodities Of similar grade these
points pay only about S cents more
| than Whiting.
Whiting is located in Indiana, about
| two miles from the Illinois line. East
st. Louis is in Illinois, just across the
river from st. Louis. The secret low
rates were given by the Chicago, Bur
lington & Quincy, Chicago & Alton,
and Chicago & Eastern Illinois rail-
roads. They were not published, on
the ground that they were state rates.
| In dealing with these rates, one of the
roadside Chicago & Alton falsely
waybilled the freight at Is cents, and
collected from the Standard at 6 cents.
\ The Chicago & Eastern Illinois blind
billed at the 6 cent rate, but 1T was