The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1906-05-05

cents per hundred pounds, or from IL
to IL cents gallon higher than the
rate received by the Standard.
The records Of the Chicago and East
ern Illinois Railroad company show
plainly that these Grand Junction and
Evansville rates We're intended to be
secret, We're given for the sole benefit
of the Standard, and were handled as
secret rates with the knowledge Of
Standard officials.
A The Standard Oil company has for
at least ten years shipped oil from
Whiting to East st. Louis, ILL.,, at rate
of or 61-4 cents on three of the FIVE
railroads running between those places,
while the only duly published rate ON
all roads has been Is cents during all
that period. The saving to the Stand
ard amounted to about $240,000 in 1904.
For many years East st. Louis has
been the gateway for oil shipments by
the Standard into the sou thwest. The
rates from the independent refining
points of Ohio to- East st. Louis have
been about u cents higher than the rate
from Whiting, whereas on other COM
modities of similar grade these points
pay only about cents more than Whit
ing.
Whiting is located in Indiana, about
two miles from the Illinois line. East
st. Louis is in Illinois, Just across the
| river from st. Louis. The secret low
rates We're given by the Chicago, Bur-
lington and Quincy, Chicago and Alton,
and Chicago and Eastern Illinois rail-
roads. They were not published, on
the ground that they We're state rates.
In dealing with these rates one of the
roadside Chicago and Alton-falsely
lwaybilled the freight at IS cents, and
collected from the Standard at 6 cents.
The Chicago and Eastern Illinois blind
billed at the scent rate, but it was
none the less secret.
l( 81 In the Kansas territory field there
are some unfair open rates The more
important discrimination has been in
the arbitrary weights fixed by the rail-
roads on crude oil and fuel oil This
discrimination prevents the Kansas
producer from selling his crude oil, es-
pecially low gravity, adVantageously in
competition with the fuel oil produced
by the Standard and the small local re-
timers.
Crude oil is charged on the basis of
IA pounds per gallon; its actual weight
is about ~ pounds. Fuel oil produced
by the reflneries is charged at ga
pounds; it actually weighs about 7.6
pounds, A barrel OF crude oil shipped
from Kansas to st. Louis is charged
nearly 10 cents more than a barrel Of
fuel oil; this difference in frenght
charges is equal to more than one
third Of the price of low grade Kansas
crude.
This discrimination has existed for
about four years, 1t does not exist in
any other field The legislation of Kan
sas in 1905 put an end to it only so far
as shipments within the state are con-
cerned.
(6) In California direct rebates, as
well as determinations by the use Of
secret rates, have been given on OIL
These rebates and determinations
benefited the Standard to the extent OF
about 100000 in 1904. The Associated
| Oil company, the Union Oil company
and some consumers of oil also received
rebates and secret rates, but the Stand
ard apparently received as much as al
other interests combined. These favors
We're almost invariably denied the ordi.
nary shipper. On shipments to Arizona
rebates on state rates were received
| by the standard in connection with in
terstate shipments. this virtually was q
rebate on interstate business. Owing
to the fact that fuel oil Is extensively
sold under contract on the Pacific coast
rate discrimination obtained by few
favored shippers have enabled them t
monopolize markets for long periods
Great injury has been inflicted by
railroads upon independent shipper.
through determinations in the distri
| button of tank cars.
(O Open published rates from Whit
Ing into a large part Of the United
States have given the Standard OF
company an unfair advantage Of from
! to IL cents per hundred pounds
This discrimination seriously limit!
| independent refiners in some markets
and shuts them out completely from
| other markets 1t Is accomplished by
the use of commodity rates-that is
rates which apply only to petroleum
and by refusal to prorate.
The true principle of commodity rat,
making is to more nearly equalize com
petltive conditions, but the general eff
| feet of It's use in the case Of oil ha.
been to give the Standard relatively
much lower rates to common markets
than those given to It's competitors.
| For instance, in shipments to New
Orleans and other points on the lowe
Mississippi river and the gulf, the or
binary class rates on similar low grad,
articles from Toledo, Cleveland ant
Pittdburg are only cents above tn,
rates from Whiting. The commodity
rates on oil are from 1-2 to 1S l.
cents above the rates from Whiting
normal principle of commodity rate,
would make the charge the same frory
all of these points, instead of increas
ing the differential,
Prior to the establishment of tn,
Whiting refinery the railroads west o
the Mississippi prorated with the east
ern roads on oil shipments from tn,
Pennsylvania and Ohio districts int
most parts of the west and southwest
After the establishment of the Whitlne
refinery these roads refused to prorat,
from points east Of Whiting. This re-
fusal increased the natural disadvant