The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-05-06
PR. R. eONIRADGTS GARFIELD
TtlIs THE or REP0RT = PGR.
VTRsIOV 90 TtCra
Vieeseresideut Gitages fsauss . stateweHi
nesfiaa Thst seeget Rates ftisted
GsuialHs ne tbaFars HrtwseH Viesn
spt naehsHer HuH 'H0ltHt HttlHa"

ssUy Tho ab1gsra Made wv Clmmlsss1nrf
GtrHsfi tttf fhe rennsyivHnia HnlifnHa
Ind s,rp f%aistea e, the sianiafd ~ Com
eao. fstu n Y Navsr, fouffh vics president
~ ne rernsylyrnit Hailfoad, ifwl"t thia
statement To-day, iu hirh hH dsfenda htH
company
afha f.t,ri ~ Commissioner Garfield N
far sa " refrrs Nv nur company IN ~ fela-
tl1ns WIEN tho traffic ~ tha Standard on
Compnny. II on iocgrlsphle and outra annua
pnfvarslpu ~ no frrta
IL L. true hcse has bsru In effect q epecial
tsts N . cents per barrel N oil from Clean
~ Rochester and u haa not hr~n Withdrawn.
Thia rata va originally made IN isss ny
the Western. Nov York and Pennsylvania
Railway. twelve years before the acquisition
~ that company ~ Tho Pennsylvania nail-
road. IN order ~ rctnin 20 The RAILROAD
trnhno " hich would otherwise have sone ~
plpe line.
@The trannc 10 he transported was crude
oil and unfinished products moving from
one refinery ~ another. bolon ginR n the
sane owners. Attention having been re-
GENTLY called 20 the wording ~ tb" tarir.
which might be construed 10 include rofned
oil, and perhaps was 40 erronoously CON
esrued and applied In a few instances, lnsig-
nihcant compared with tho total tranic,
che wording OF the tariff was corrected 40
a. b Clearly confne the rate to crude oil
and unfinished products thereof. as In
tended. II Il not q secret ratio and neN er
has been secret.
sThe tariff was not filed with the Inter-
state Commerce Commission because II
applies 10 traffic solely within the state Of
New York, and tariffs upon such traffic are
AlulH AlaI uifh tho pnmDliaainn. lOaQ
jurisdiction covers only interstate trafic.
Z Il was issued in the same manner as tariffs
l are issued on all other State traffic. II wa
' not made as a favor to tho Standard Oil
Company, but for good business reasons.
similar TO those which actuated the rail-
road in making special rates under other
special conditions for the so-called indie
pendent reflners.
There are Il number Of such rates in
effect and for numbers Of shippers OF other
commodities as well. 1t was not made, az
stated by the report, for the purpose Of
combination with other rates to produce
secret, low through rates TO New England,
and was never, to our knowledge, used for
such purposes.
"As to the so-called saving of Sis 900 in
1904 / presume this is based on the differ
ance between the special rate and the reg
ular classification rate. This conveys the
impression that a large sum of money was
illegally given by the railroad, which, in
view Of the facts above explained, is mani.
festly not true.
Reference is made to blind billing
as if il were some secret device. This also
is untrue, The explanation Of so-called
blind billing Is very simple. Billing is
another ZANE used by railroads for mani-
NA.ffrt- urI Ia, = "a Tagnrl nf Inn EIinmnnt
made for use only of tee railroad company,
In making proper movement of the ira ftic
and taking proper account of 1t. The public
never sees a manifest, being Interested only
IN the rate, the bill OF idding and the reign
"The term blind is used when manifests
are made without the details being shown,
q practice not infrequent and not peculiar
to the oil traffic. Its purpose is to save
clerical work where sucn work is u%nneces-
s~ary-for example, in the case OF settle
meats for freight money being made di-
rectly through the auditors department
instead oil through the agents, sucl practice
being necessary because of the treAsurers'
offices of large business concerns being
situated at u distance from the point Of
shipment or destination.
1T Is a method of accounting used for
convenience by the railroads and does not
contain any illegitimate practices what
ever, nor does 1t Affect in N way the in
terests of the Skipper or consumer. This
vas fully eXplainei TO Commissioners Gar
held's Representative and II was clearly
shown to him, in the case under discussion,
that the actual freight money received
by the issued rate was collected and re-
tained by the railroad comp my.
After an exhaustive examination by the
Department of Commerce-our books and
accounts being freely produced both on
State and interstate trafic-it appears that
the only case that Commissioner Garfield
was able to. present for criticism in all our
HalafiOna with fhe Standard Oil COmDanY
10 this rate on oil between Clean and Roches-
ter, two points in the State Of New York
ca distance OF 100 miles apart, at each or
which points are located reineries Of the
Standard Oil Company, and between which
q pipe line could easily nave been con-
struoted.
"The chief clerk in charge of the xami-
nation was advised that If Commissioner
Garfield desired detailed information as to
the rate referred to, or any practice in
connection Herewith, or information as to
rates from other points, we should be glad
TO explain them to him personally at any
time, but suggested If there was any criti-
cism as TO interstate rates, or even State
rates, the propriety Of his referring the
matter to the Interstate Commerce Com
mission for their information and action.
Immediately after the e~Xamination vas
concluded, notwithstanding the pledge
|. given US by Commissioner Garfield when
: making his request for the examination
that 1t would be conducted confdentially,
despatcnes WlIlcn purporteu 70 etndhdte
from Washin gton were published in the
newspapers throughout the country de:
claring that the Pennsylvania Railrc ad
, Company had been detected in a so-called
crime Of blind b~illing'-an allegation
which, in view of the actual facts as above
stated, cannot be regarded otherwise
than as absolutely false and caulculated
10 misleady
%In the message from the President
transmitting the report of Commissioner
Garfield reference is made to the relations
of the railroads to the so-called sugar
trust at New York, ard to information
communicated to the President that the
so-called sugar trust rarely, II ever, pays
the lawful rate for transportation.
AS the Pennsylvania Railro ad Company
is know to participate in the carriage OF
this traffic. it would necessarily follow
that such Information applied to that COM
rany, and in view Of this it Is pro per that
answer thereto should be promptly made
On that ccmpany's behalf.
-E"Havingy personal knowledge, / derry
most positively and emphatically that such
Information is true, so far as the Pennsyl-
vania Railroad Company is concerned; on
the contrary, l assert positively that the
traffic Of the go called sugar trust or other
ebippars pf c,,rn hnu hmm CARRIED for