Los Angeles herald., 1906-05-05
STANDARD OIL REBATES

Everybody Is presumed to be familiar
with the history Of the Standard Oil
company. the most powerful and dan
eerous trust in the United states.
Everybody knows, therefore, that
this trust was possible Of creation only
by system OF freight rebates which
enabled that company to ship oil for
much less than any other producers
could, and that thereby all competition
was destroyed, giving to the STANDARD
a complete monopoly.
Everybody in the east, however, had
presumed that after its first battles and
conspiracies and scheming victories
and especially after the series of start
ling disclosures Of the past few years
the Standard Oil company could no
longer obtain the freight rebates Of its
earlier history and that It was sue
cessful now by other means. such as
combinations and separate companies
In the different states.
To all such some Of the facts con-
tanned I'm the message which President
Roosevelt sent to congress yesterday
win prove to be news indeed.
The message, based upon the report
OF Commissioners Garfield, calls public
attention to the systematlzed forms Of
robbery through and by which the
Standard oil company is enabled to
crush out all competitors. And these
robberies of the public could not occur
without the consent and cooperation of
the railroad companies.
"An especially large number of secret
rates and rebates in the transportation
Of oil was found in California" says
Commissioner Garfield. "In all, more
than eighty distinct violations of tariffs
on oil were discovered in that state.
The total concession to shippers and
|consignees under these rates as COM
pared with the published tariffs may be
safely estimated at about 100000 a
year, of which amount about 100000
went to the Standard"
Going more into detail, Mr.. Garfield
reports that the Associated and Union
oil companies of California have been
guilty of accepting rebates and that
both the Southern Pacific and Santa
Fe railroads are guilty of using rebates
and secret rates for the benefit of the
Standard and Associated companies.
In illustration of these declarations
Mr.. Garfield reports that although the
Santa FEES published rate on oil from
Redondo to Los Angeles is 80 cents a
barrel, the rate to the Standard has
been 7Ik cents. He also says that the
tariff from Bakersfield to San Diego
was 92.7 cents but the Standard and
Associated shipped for 5O.4 and the AS
sociated often took contracts for oil
at 20 cents a barrel, much less even
than the published freight rate. Inde-
pendent companies, says Mr.. Garfield.
were charged so cents a barrel for ship
ping oil from Redondo to Chicago, but
the Standard paid only "a cents.
This is not news to Southern Cali
fornia. The independent oil companies
have been complaining long and fruit
lessly against these freight rebates and
discrimina tons without redress or
recognition. 1t is important now be-
cause the federal officials have at last
discovered the facts.
But what is the United States gov
ernment going to do about it?
The antitrust laws have been vio-
lated both by the railroad companies
and the Standard oil trust. The duty
devolves upon the district attorney of
Southern California to take some cog
nizance of the presidents message. And
it is hoped he will not wait for hint
from Attorney General Moody. What
ever is to be done should be done
quickly.