Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-05-05

As long as the state rates are not required
to be made public, and shippers use such
rates In combination with interstate rates,
all manner of devices to evade the purpose
Of the law are possible. All state rates
used in connection with interstate ship
ments should be filed with the Interstate
Commerce commission, and a radical
change should be made in he direction Of
simplifying tariffs and in methods of post
ing and filing them.
Going more into detail, Commissioners Gar
field says:
The general result of the investigation
has been to disclose the existence of nu-
merous and fragrant discrimina tons by the
company and its animated corporations,
With comparatively few exceptions, mainly
Of other large concerns in California, the
Standard has been the sole beneficiary or
such determinations. In almost every sec
ton OF the country that company has peen
found TO enjoy some unfair ADVANTAGES
over its competitors and some OF these
A determinations AFFECT enormous areas
Some Forms of Discrimination.
Determinations in the transportation Of
| oil embrace q variety of forms, the more
Important of which may be classed under
l. Secret and semi-secret rates.
/ 2 Determinations in the open arrange
ment of rates.
g. Determinations in classification and
rules of shipment.
4 Determinations in treatment of private
tank cars.
the bureau of corporations have applied
only on shipments of oil wholly within
single states. The Standard Oil company
which controls refneries in twenty states
is obviously in a position to make ex-
! tensive use of such interstate rates, or as
they are ordinarily designated. state rates.
For the purpose of more effectively con-
cealing the secret rates given to the Stan
dard OIL company, railroads in several I'm
portant cases have used peculiar methods
OF billing and accounting.
The pledge OF membership is simple and
In some cases oil has been blind billed"
that Is TO say the way bills have been
made out showing the kind of product,
transports and its weight, but without
showing. as is the usual custom, any
freight rate or the amount of the freight
charges.
Local Agents I'm the Dark.
In such instances the collection Of
freight is ordinarily made. not by the
local agent of the railroad but through
the central agent, by the presentation to
the standard of a summary bill showing
the amount of freight charges at the
secret rate. Local agents often do not
know what the actual rates used on blind
bills are.
An especially large number of secret
rates and rebates in the transportation
OF oil was found in California In all,
more than eight distinct violations Of
tariffs on oil were discovered in this state
the total concessions TO shippers and con-
siEners under these rates compared
with the published tarlffs may be safely
estimated at about 100000 per year. OF
which amount about 100000 went 10 the
Standard.
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possibility of further discrimination says:
IL seems wholly possible that there may
exist a multitude OF other Determinations,
effected by secret rates or even by re-
VOWED in the local distribution Of oil
especially IN less than carload lots, The
1snanTs ~ o JiI ~ I 5nPs r enSh Iot
and although the distances involved in
such cases are usually short the amount
which prevail on such business under reg
ular tariffs would be very great and the
possibilities of departure from these
ii was psrfectiy clear that the distinc-
ton between the rebate and the secret rate
Is merely one OF accounting
DISCRIMINATION On open Rates.
Regarding discrimination in the open
rates Commissioner GARFIELD declares:
different methods method are used n different
the net result is that from Maine to Cali
fornta the general arrangement OF open
rates on petroleum oil Is such as to give
the Standard OH company an unreasonable
advantage over it's competitors.
The arrangement is unavoidable that the
Standard has had an important voice In
the construction Of such rates. ana this
conclusion Is supported by SPECIFIC evidence
developed by the investigation.
In many cases. he says, there are IN
reasonable differences between the rates
on oil in carloads and less than carloads
He charges that discrimination Is practieed
in some instances In the treatment OF pri-
vate tank cars. On this point he says;
In most sections OF the country all re-
hneides operating tank cars OF their own
receive equal treatment In respect to the
mileage allowance, On the Pacific coast,
however, most independent renneTies re-
ceiVe equal treatment In respect 10 the
mileage allowance. On the Pacific coast
however, most independent rehneries re-
ceive but six-tenthE Of / cent per mile
\ ana this on the loaded mq1 cement only. An
exception n made where The haul exceeds
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