The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-05-04
will enable the government to entirely
control them. 90

will enable the government to entirely
control them. '>
SECRET PLoTTs ARE CHARGED
Commissioner Garfield Alleges Relating
Tho Roads Deny Assertions. *
In. summarizing his report Com
missioner Garfield speaks Of his per-
sonal visit to the oil fields and of the |
great mass of data obtained by him |
either personally OF thru agents of the |
bureau Of corporations. The prelim-
mary study of this material, he says, |
showed that the most important sub
ject was transportation, which enters
product and hence most important |
factor in competitions. % "a
Taking up the output of refined oil, |
Mr.. Garfield finds that it amounts to
about 26,000,000 barrels annually, of
which the Standard Oil company direct
ly and indirectly controls about 49,
100000 and approximately the same
proportion of the other finished prod
ucts of petroleum. Continuing, the re-
port says: -
"The Standard claims that the loca
tion of it's refneries and the use Of
pipelines are natural advantages to
which it is justly entitled by reason Of
the energy and foresight Of its man
ayers. While in a measure that is true,
it must not be forgotten that these ad-
vantages were in part obtained by
| means Of unfair competitive methods
after years of fierce Industrial strife.
Abuses Make 1t Monopoly.
"The development of the pipeline
system by the Standard Oil company
was the result; Of special agreements
with railroad companies. Furthermore,
those so-called natural advantages have
by discrimination in freight rates, both
published and secret, interstate and
state, which give the Standard monopol:
istic control in the greater portion of
the country, and which sd limit compe-
tition as to practically prevent the ex-
tension Of the business Of any indie
pendent to a point which even remotely
endangers the supremacy of the Stand
ard.
can immediate result of this delim-
itation of the competitive area is. shown
by the prices Of ordinary illuminat ing
oil turnout the country. After deduct
ing the freight rate the price Of such
oil: is usually from 2 cents to cents
a gallon higher in: the non:competitive
T. than in the competitive fields. A rea:
sonable profit upon refined oil is about
one half cent per gallon: It is clear
that exorbitant profits are obtained In
the non competitive fields. This monop
olistic control extends from the well
of the producer to the doorstep of the
consumer $685.
Nails a Lie.
Mr.. Garfield cites the fact that onl,
: the New York Central Railroad com
pany refused for itself and affiliate,
lines to give access to records Of stat
rates.
: At the beginning of the investiga
' ton, he says, "the Standard OIL com
}, pany denied that it had obtained i
, recent years, or is now obtaining, an
o rebate or other transportation discrim
Il facts and the explanations leads to tn
l. conclusion that the Standard Oil con
pany has habitually received from tn
% railroads, and is now receiving, secre
e rates and other unjust and illegal di
examinations. 4Zs Il.
: In 1904 these secret rates saved I
!. the Standard Oil company three-qua
ter of a million dollars, representa-
the difference between the open rate
W and the rates actually paid. - F.
. Crimes Done in Secret.
"These determinations he say
U. "have been so long continued 50 s
a cret, so ingeniously applied to new co
n ditions Of trade and 50 large in amoul
is as to make it certain that they we
due to concerted action by the Stan
a. ard and the railroads. - e..
is He says further, that the Standa:
Oil company is receiving unjust d
- ordinations in the matter Of OPP
10 rates, the published rates from the lea
"a ing Standard shipping points bel
II relatively much lower than rates frc
"a the shipping points Of its competitor:
B Mr.. Garfield then refers. to seven
81 stances Of important determinations
81 favor Of the Standard Oil company
y various parts of the country, and sa
- that most Of the secret rates and Sol
b Of the open determinations discover
n by the bureau were abolished by t
d railroads shortly after such discover.
q After calling attention to the go
r. which already has resulted from
u investigation, Mr.. Garfield says that t
@ changes effected have put the indepel
ow competition possible in territories he
a. tofore inaccessible. The report G.
cludes as follows:
kes Independents Still in Peril.
INK "Nevertheless the widespread {
20. ordinations in open rates still in TO
On On; leave the Independents at serious {
anfl advantage. The investigation has o
II ;n incidentally touched state shipme
,Ls from distributing centers, particula
, nas in less than carloads. The few
"a, stances examined suggest the proba
ndi. ity of determinations on such 81
ments which, taken in connection v
s. thru traffic, may result in discrimi
os- lions on interstate business.
IL ~ II have cited these particular
. LOS stances to show the various methods
which Determinations are obtained,
Pos- to call particular attention to meth
BUY which if legal, are mere devices to
aere tain exactly the same result as W.
ana be obtained by rebates paid on in
state business. Any freight discrim
ants tion, whether it be state or interst
most tends to give control Of markets to
lied preferred shipper, and makes monol
5 or possible. If existing law merely
7hen hibits special device for obtaining
elimination, and permits the same re
to be accomplished in a different !,