The French Broad hustler. [volume] (Hendersonville, N.C.) 1896-1912, 1906-05-10

Commissioner Garie,d's Report.

49,
Commissioners Garf1eid'S Report.
Commissioner Garfield. in his report.
classes the more important forms of
discrimination in favor of the Stand
ard by the railroads. under the heads
of secret and semi-secret rates. dis
ordinations i'll the open arrangement
of rates, determinations in classifca-
tons and rules of shipment II dis
ordinations in treatment of private
tank cars. He says:
Not only has this resulted in great
~pecuniary advantage in, transportation
cost to the Standard, but it has had the
far more important effect of giving
that company practically unassailable
monopolistic control of the oil market
throughout large sections of the
try.
The manufacture of refined oil, COM
monty known as kerosene, is about
6 100000 barrels annually. of which
the Standard Oil Company directly and
Indirectly controls about 23,OO0,OOO
1t also controls approximately the
same proportion of the other finished
products of petroleum.
In the full report submitted the COM
mission reaches these conclusions:
LIE S6LSHU Ill ISSu1I VI IL lANSO(lSd-
ton has been to disclose the existence
Of numerous and fragrant discrimina-
tons by the railroads in behalf of the
Standard Oil Company and its affili-
atad corporations. With comparatively
few exceptions, mainly of other, large
concerns in California; the Standard
has been the sole beneficiary Of such
determinations. In almost every sec
ton OF the country that company has
been found to enjoy some unfair ad-
vantages over its competitors, and
| some of these determinations affect
3, enormous areas.
Many of. the secret rates discovered
by the Bureau of Corporations have
applied only Oh shipments of oil wholly
within single States. Standard Oil
which controls refineries in twelve
States. is obviously in q position to
make extensive use of such intraState
rates. or as they are ordinarily de-
signed. State rates.
For the purpose of more effectively
concealing the secret rates given to
the Standard Oh. railroads i'll several
important cases. Mr.. Garfield finds.
have used peculiar methods Of billing
A most careful review of the facts
and the explanations leads to the fol-
lowing c"OucluSIOU:
The Standard Oil Company has ha-
bitually received from the railroads
and is now receiving secret rates and
other unjust and Illegal discrimina-
tons.
Oil is # from two to FIVE cents higher in
non-competitive than i'll competitive
fields.
The monopolistic control extends
from the we'll Of the producer to the
doorstep of the
The New York Central alone of the
railroads refused to give access to lis
records of State rates.
These determinations have been so
long continued. so secret. so ingenious
~ applied to new conditions Of trade.
and SO large in amount as to make it,
certain that they were due to concerted
action by the Standard and the rail
roads.
The Standard Oil COMPANY is receiv-
ing unjust discrimination in open
rates.
The New England territory has been
in control of the Standard Oil by rea-
scn of the refusal of the New Haven
and Boston and Maine to pro-rate-i. e..
to join i'll through rates-on oil shipped
from, west of the Hudson, and by
means of the adjustment of published
rates.
The Standard Oil has maintained alb
soIute control of almost the whole sec
ton OF the country south of the Ohio
and cast of the Mississippi by means of
secret rates and open determinations.
Case after case is cited in Coninis-.
sioner GarfiPld's report to prove that
the Standard is still receiving secyet
and unlawful rebates and rates. al
though the officials Of the trust de-
clared at the beginning of the investi-
CATION that the Standard was not re-
ceiving such determinations.