The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-11-07
NO MERCY FOR STANDARD OIL.
U. 8. WILL DEMAND AGGREGATE
OF $3.50, 900, 900 PENALTIES.

Trust Estimated % Have saved About
slyO0O.O 900 Through Rebates and Fines
In proportion VIII he ASked-New Eng
land walled In by Trust and Railroads.
Hartford, Nov. 6.-Herbert Knox Smith,
Deputy Commissioner Of the bureau OF
corporations In the Department Of Com
meroe and Labor, said to-day that az a re-
suit OF Investigations that he has been
conducting the United States Government
will prosecute the Standard Oil Company
to collect. ifpossible. sl0o 900 900 i~npenlaties
for violations Of the Elkins act. lndiot-
ments have been filed against the company
In different parts Of the country.
Mr.. Smith said his Department about a
year ago began to investigate the oil In
dustry in this country and the freight rates
for oil In the differentState This investi-
CATION showed that the Standard OH Com
pany got a lower rate than any Of the other
refiners in this country.
Every railroad company but n gave
the information asked for willingly; and
that railroad was the New York Central.
The investig alton showed that tho Standard
Oil Company had a system by which it had
control of the whole country with a prefer
htA0 AACAShb Aatc II A6 thNOhs
The largest refinery which the Standard
on Company has is at Bayonne, N. j., and
It's next largest Is at Writings Ind. The
records Of the railroad showed that the
Standard shipped from its refinery at Whit
ing to st. Louis about 1000, 600 pounds of oil
a year and that the oil was carried by the
railroads for o cents instead OF IS cents a
hundred pounds. the published rate. The
Standard from that point controlled the
Western and Southern market.
Mr.. Smith said the company operated
through ON ingenious combination which
was secret to the last degree. While the
Standard had the advantage OF these rates
the independent rehners had to pay local
rates from one point to another. While
the railroads would prorate with the stan
dard. they would not prorate with inde-
pendent r%efiners.
In the East the Standard Oil got through
rates on all its shipments. While h rail-
roads gave through rates on other oom-
modities. they did not give through rates
on oil except to the Standard.
The same system was carried out In Now
England by the New Haven road and the
Boston and Maine. These companies re-
fused to prorate with the reflners in western
Pennsylvania and the effect Of the discrim-
nation was to build a wall around New
England in favor Of the Standard, Mr..
Smith said.
The Standard also has a refinery at Clean,
n. Y, and from this refinery il got a special
rate from the railroads to ship into YER
mont and other parts of New England.
The Standard ships the most Of its oil
in tank cars, and under the law each illegal
shipment in q tank car il a separate offence
in violation of the Elkins act. Indict-
ments have been filed against the Standard
in New York, Illinois and Tennessee. One
OF the indictments filed in Tennessee con-
tains e,432 counts and weighs forty-lve
pounds.
The statutes provide for violation Of the
Elkins Act a minimum penalty of 81 900
and a maximum penalty OF $40, 900. Mr..
Smith said that the Government would ask
to have the maximum penalty imposed
under each count if the Standard il con-
victed. He said that the present income
of the Standard is largely the result OF
railway discrimination in its favor and
the Government believes that fines should
be imposed proportionate to the offence
committed.
The saving to the Standard every year
because of the discrimination was probably
about 81 ,0OO, 900, Mr.. Smith said. but the
e1ect on the general oil b-slness was greater
because of the weakening of competition.
The work of the bureau, according to
Mr.. Smith, ia going TO result in a lower
price of oil, but as the Standard had driven
many OF the independents out Of this and
other parts of the country it will take a
little time for the independents TO get in
and get a market for their product.
The income Of the Standard Oil Com
pahy is about $50, 900 600 a year, Mr.. Smith
said