The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-24
10 PUSH STANDARD OIL SUITS
ESOCgH EyIDENTT ~ sEcCRE
fOVVHTIOVSC tHiNIf TUtNHA
Pfssseu'isw, VIII ~ indss M tF'mi0sl
asetieus NJ the tH'sHs,ate tHw vs.
Expectation NJ lH,n0itHa AaybSdy
"Haheg ~ Nv iHe W"HnaaemeHt

W4VfF W " WV VWHHH'NH'"''
wAsHWu,g t,0s a. fyefy sT,T vii
10 Bitds w th' bHptrm1n' ~ iHH'ira "
sscifs spfy aston 1atlrs' IN '1Hlrri
on C0ntfu NJ mi soms n rs pn'Hfa ihi1f
The criminal sH4'Ipha " tht 1nii.rsllia law
Much evidence his HIretdy irnn phttinal
Ahd Inofe Ia ]ettacfeI soon Tho Admiriss
tfatlon di No. determines 90 =, ahetd ~
the prosecution tnil ~ bad what n fegtriUl
- sufficient eviisnc, - arrifr cinyicti1bs
N. decision ~ snietytt Nv ~ ir.Noi m'uia
vas approved by tho four rail otrotts IN
The Cahinei anil he Admins ration his NJ
doub, ~ NJ ih.li'y ~ obtain ornyic'ions
Tho AUorne y.G'nertl ami thisq win,
ere helping him pretnr ~ tho evidences q gums
the s,anda ri on do NJ, expect 20 secure the
indie ment ~ any ~ The corporations hiRh.
est onicera This VIE frankly admitted ~.
day In an %authortHtt Va quarter II WIS
acknowledged that u would b, uselnsa 10
endeavor 20 indic, ANYBODY higher up
nthe man, g'ment Of the Standard In an
Informal statement on the suniect ip re-
sponSe 10 Que". lpns a Government onicHI
@id.
The most We can expect is to 60 about
half way up. II IL impossible to get evil
dence Of criminal practices against the
head men of great corporations. We found
that out In our prosecution Of railroads..
About the highest official We could ndict
was a traffic manager. In this prosecution
we dom want to indict clerks, although We
could get evidence against them, and We
know we can't indict the head men because
OF failure to secure evidence Of direct re-
sponsibility on their part. Therefore we
shall try to get those who rank o
half way between the top and the bottom,
which is about the highest that we ever can
go. We do not expect to get any admis-
sions from subordinates that in violating
the law they we're acting under the orders
OF those OF higher rank. They might re-
oeive such orders, but they will never tell
The impression prevails here that the first
cases in the criminal proceedings OF the Gov
eminent against the Standard Oil will be
instituted at either Chicago or Indianapolis,
with the indications pointing strongly to
the courts sitting in the former city. The
statement was made at the Bureau OF Cor
porations to-day that the most fragrant
violations Of the laws regulating interstate
on the part Of the Standard had
originated in what is known as the Whiting,
Ind, case in New York and Vermont, on
shipments from clean, n. Y, to Rochester,
and thence to points in Vermont, and st.
Louis on business to the territory lying in
the Southwest. In the Whiting case several
railroads are involved.
COMMISSIONS Garfsld pointed out in his
report that the published tariff rate from
Whiting, where the Great Western refinery
Of the Standard is located, was A cents per
hundred pounds. For at least ten ye ars
be said, the Standard, by means Of a secret
combination Of rates by way of Grand
Junction, Tenn, over the lines of the Chicago
and Eastern Illinois, the Illinois Central
and the Southern Railway, had shipped oil
to Birmingham for 2oh cents. The Toledo
competitor, no further distant, had to ray
S7L cents. He continued:
"A great area in the South has been
reached by this same secret combination
of rates, averaging one-fourth less than the
published rates. The total saving to the
Standard on these rates has been about
S70,0 o 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 Evansville for local
use, and for many points beyond in the
Southeast, also called State rates, for 0
cents and 915 cents. The freight rate paid
by the Standard in this case has been about
$1o,Oooa year less than the open rate.
THE records of the Chicago and Eastern
Illinois Railroad Company show plainly"
reported Commissioner Garfield, that
these Grand Junction and Evansville rates,
intended to be a secret. we're given for the
sole benefit Of the Standard, and were
handled as secret rates with the knowledge
Of Standard officials.
whiting Is located in indian Just
about two miles from the Illinois line.
East ct. Louis is in Illinois, just across the
river from st. Louis. Tn secret low rates
were given by the Chicago Burlington and
Quincy, the Chicago and Alton and the
Chicago and Eastern Illinois Railroads"
This, in the opinion Of Commissions
Garfield, is probably the strongest case
worked up by his bureau against the Stand
ard and the railroad companies, and for
that reason it may be the one upon which
the Government will begin the fight to be
waged against the oil combine.
In the Olean-Rochester case the Pennsyl-
vania Railroad Company was mentioned.
Commissioner Garfield reported that the
Pennsylvania gave the Standard a rate Of
o cents a barrel from Clean to Rochester,
while the independent refneries. situated
in territory adjacent, were given a rate Of
30 cents a barrel. by means OF this 0
cent rate, in combination with a rate from
Rochester to Norwood, N. "" reported
Commissioner Garfield, "a virtually secret
and very low rate from Norwood to Bur-
lington, and secret local rates therefroms
the Standard has been able to supply GEN.
tral and northern Vermont with oil at a
rate from 10 TO 81 cents per hundred pounds,
whereas no independent reiner could
reach that territory from western Pennsyl-
vania save by a rate varying from SO to so
cents per hundred pounds" Commissioner
Garfield said furthermore that all the ship
ments from Clean to Rochester on these
secret rates we're blind billed, /. e., the rates
were not shown on the waybills.
In case shipments from st. Louis and
East St. Louis like abuses were noted in
volving a number OF roads running from
these points into the Southwest.
Although a great deal has been written
about the report OF Commissioner Garfield
only one chapter OF it has been so tar
given TO the public. 1t ia suspected here
that mrch has been withheld that NAV
have a bearing on the criminal proceedings
about to be instituted. The n~ortious of
the Garfield report forwarded to congress
some weel:s ago related only to transporta.
ton and freight rates. The remainder OF
the report, now being PREPARED. will deal
with the following subjects
The crude oil produc, on in the United
States and lite relation to the worlds supply;