The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-05-17
ANSWER MADE TO
GARFIELD REPORT
Standard Oil Company Issues
Official Statement in Reply
to President.
DENIES HAVING USED
ANY SECRET RATES
Declares That the Corporation
Has Dealt Fairly With Roads
in Business.


NEW YORK, May l6-The Standard
oil company today issued TO It's share
holders a statement in reply To the special
message recently sent to Congress by
President Roosevelt and the report of the
country's oil industry by Commissioner
Garfield OF the bureau Of corporations,
which accompanied II.
The statement Is signed by c. NJ. Pratt,
secretary, and was issued by order OF
the board OF directors. 1t denies positive
" the charge that the Standard on com
pany benefited by secret rates for the
transportation OF Its products.
Saws Only n Theory
The statement declares that the esti-
nate that the company saves S'oo,ep
ear through the operation OF certain an,
freight rates could only have been ar
rived at by thcorizlns, The statement IN
part. says:
Text Of Statement.
II Tho claim of CommissIoncr Garfield was
,rue, that the Standard OIL company Is Ia,
vored by opon rates 1t would involve not only
coIlusion between tho railroads and the stand
ara OIL company but eolluson by the rSllroads
,onnent Of a railroad not reaching Whiting.
Ind, for example, TO the estaeliehment OF rates
ont OF that point which would be injurious 10
6usiness out OF another point at which the
coneentIng railroad was receiving traffic; To
rgins about such an arrangement would be
IMPOSSIBLE II may be said generally that
here is a competing refinery in almost s,s esSsy
ard has a refinery, except at Whiting lhn'
Denies Discrimination.
W ratos can be made applicable to the
STANDARD which Will not be equally applicable
20 the Standards oompetiuors
After an investigation Of shipments curing
period Of about Hfteen years over more than
5000 miles OF railroad the Commissioner rs not
-eceiyed q einrie rebate on It's Interstate chip
mentr He has only been able 10 call ati.h-
stion In his opinion, required explanation.
This explanation was freely given ana md Es ,eS Ts-
Ileve would be satiofactory TO any man TAMIL
lar with transportation problems
Declares Garfield Unfair.
II the Commissioner had any doubts to
the regularity Of there rates. he might have
brought them TO the attention OF the inter inter-
al Issue could have been heard and deter
mined In the absence OF such determination
/, 10 surely not within the limits OF fairness
sor tho bureau OF corporations to cast aspcr-
slcns upon a great corporation
Has Many Rivals.
The company owns and controls only a very
moderate percentage of the crudo production OF
mo United States and with at least one hun
dred and twenty-five rival re1neries in exist
enco 1T is pslpaOie absurdity 70 call ia IT a
mors than 50 per cent OF its output has been
shipped foreign countries In creating and
encountered innunerablo ohstaclcs and inces-
cant competition from other petroleum nous,
tries possessing the advantage OF geographical
iocation and cheaper labor. and which are
often times developed under the fostering care
Many maintains n gratifying percentage OF the
worlds commerce. IT is because 1t keeps its
agreements and delivers products oil reilsole
quality at reasonable price.
Reason for Prosperity.
Whatever measure OF prosperity It has en-
loved is not trncoabe TO Illegal or reprohen-
slbe methods but to It's economic and elapor-
ate Industrial Organization. covering as 1t does
cyery detail of transportation, manufacture and
administration
The report then takes up the report OF
commissioner Garfield under various
neads. including New England and the
alleged refusal of the New York. New
Haven & Hartford and the Boston
Maine to prorate ,fnrsf%on on Gn WIN TN the the
Standard Oil company; shipments TO the
south, embracing Mr.. Garfelds charge
That the Standard OIL company mas man,
aimed absolute control of the section OF
country south of the Ohio river and east
OF the Mississippi through secret rates
and open discrimlnatons iro1 Mh,tins, lInie
mE Ind TO East st. Louis and other
features OF the Garfield report, To all OF
;hese charges the report makes explicit
denial, and goes into details on the con-
dItions prevailing In the sections named.
Concerning the rate to East ST. Louis,
the report says;
AS to 'SecIeC ftdIcS.
Mr Garfield complains OF the application OF
Whiting Ind. TO East st Louis, Ill, claim
ing TINT II Was 4 secret rate, md that In
ihe matter OF waybilling by the railroads ma
nipulation reeorted to with the kno"lcdg9
ot The Standard OIL officials
Makes Explanation.
About 1920. when the refinery had been es-
tabIishod at Whiting, Ind. the Chicago, Bur
lineton & quincy railroad named to ths Stan
Iard
pounds and Issued and sent 10 the STANDARD
OIL company a rate sheet from Chicago &c
East St Louis. Ill. AZ tho same time II od-
vsed tho Standard OIL company that under
It's rules the State rate OF cents per leE
pounds would apply. not only from Chicago
proper. but from all points both In Illinois and
Indiana within the so-caiic1 Chicago switch,
ing limits. and that under euch rules II would
absorb tho switching charges per car from
Whiting to It's own rails. thus applying the
subsequently the Chicago & Alton ond tn,
Chicago Eastern Illinois collected share
business divided between the thrco roads
All Shippers Understood.
For several years the three roads applied
the Scent rate from Whiting under thc
widely known rule, understood by every car
load shipper in Chicago and vicinity, viz
Tint Chicago rates would apply to and from
all points within the switching limits.
number OF these points are Just III
border In Indiana and arc tho seat of imoor
ant Industries. VIZ. Whiting. Eost Chicago
Hammond end Indiana Herbor The applce
Within the switching Iimits Is of long usag x
and concerns not only the shipment of oil
from Whiting To points in Illinois but tn
shipments OF many other lines OF goods to sim
liar points.
Question Was Covered.
Several years ago the railroads covered tn
matter more specifically by Ming with II,
Interstate Commerce Commission so-calle
application Sheets providing that my rat
named from Chicago 10 point in Illinois o
beyond down TO minimum OF cents per IL
pounds In carloads would apply from n
points In all Illinois or Indiana within Il,
Chicago switching linits. Common usage g,
tabIished the principle OF applying Chicag
rates from points within the Chicago switch
Ing limits up TO the time tho practice wa
covered by application sheets with the Inter
state Commerce Commission With the mctr
Cd OF waybiIng which is purely an account
,nR matter between the railroad agents an
tho railroad auditor. tho shipper necessarll
has nothing 10 do. Commissioner Garfield iT