Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-05-04
THE GARFIELD REPORT.
Astonishing Revelations in Relation I,
Standard Oil Rebates.

ASton0htn0 h0v0iattonS IN Henation eo
Standard Oil Rebates.
In his report Garfield fnds that the
OUTPUT OF refined oil amounts to twen-
ty-six million barrels annually OF
which the Standard OH Company, di-
rectly or indirectly, controls about 23.-
000. 900 and approximately the same
proportion OF other finished products
OF petroleum.
Continuing the report says: The
Standard claims It's location OF Its re-
fineries and use OF pipe lines are nat
ural advantages to which 1t Is justly
entitled. While in measure that is
true, 1t must not be forgotten these
advantages were In part obtained by
means OF unfair competitive methods
after years OF fierce industrial strife,
Development OF the pipe line system by
the Standard was the result Of special
agreements with railroad companies,
Furthermore, these so-called natural
advantages have been and are being
greatly increased by discrimin-
alton In freight rates which give the
Standard monopolistlc control Of q
greater portion OF the country.
"The immediate result of this delim-
itation Is shown by the exllorbitant
profits obtained in non competitive
fields. In 1s0teseora' rates saved the
Standard $T50,000, representing a
difference between open rates and rates
actually paid. These Determinations,
he says have been SO long continued,
so secret and so ingeniously applied
to new conditions of trade. and SO large
in amount as to make II certain they
were due to concerted action by the
Standard and railroads"
Great Advantages.
"The following are few OF the most
important determinations and the
methods by which they were obtained:
"u) For about ten years the New
England territory has been in control
OF the Standard OH Company by raa :
son of the refusal OF the New York.
New Haven and Hartford road AMI OF
the Boston and Maine road. en- all but
few divisions, to prorate--i. e., to join
in thru rates--on oil shipped from west
OF the Hudson river, and by means OF
the adjustment OF published rates
1.-THE Standard is entitled to the ad-
vantage of its water shipping points in
reaching New England, but that ad-
vantage was greatly and unfairly in
creased when the railroads, by refus-
Ing to pro-rate, virtually kept inde-
pendent refners from using all-rail
routes. The refusal to pro-rate in
creased the rail rates from the west
from s to 10 cents per 100 pounds.
These railroads do pro-mte on ell oth-
er commodities: their refusal to do so
in the case Of OIL amounted to impos-
ing substantial tax on all consumers
in the region they cover, and Is also a
heavy discrimination against the
smaller ref1ners.
''(2) The Standard Oil Company has
been able to absolutely control for
many years the sale of oil in the north
eastern part of New York and in a por
ton of Vermont by means of secret
rates from its refineries at. Olean and
Rochester The Standard has been
able to supply central and northern
Vermont with oil at a rate OF from Is
to 81 cents per 100 pounds, whereas no
independent refiner could reach that
territory from western Pennsylvania
save by rate varying from 33 to so
cents per 100 pounds.
"The saving to the Standard during
1904 by the secret rate from Olean to
-IContinued on Eirhth Page.)