Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-05-05

I+@----
.o nrorate. virtually kept nde-
,a,,+ reiners from using ali rail-
49,. Tho refusal to prorate increased
49, uoi, rates from the West from TO
- .ants ner hundred pounds. These
,,,.,ads do prorate on all other COM
a;,;as. their refusal to do SO in the
| o,se If oil amounted to imposing
srbe,,ntial tax on all consumers IN me
lion ,ney cover and is also heavy
| determination against the smaller re-
| hners. 49,, ,x,
| ,ble 10 absolutely control for many
| years the sale of oil in the northeast
ern part of New York and in portion
of Vermont by means of secret rates
from it's refinereS at Olean and Koch
ester.
TIE PENNSYLVANIA Railroad has given
the Standard a rate of 8 cents a barrel
from Clean, n. ", to Rochester, while
the independent refineries situated in
territory adjacent to Clean were given
a rate of 3S cents a barrel. By means of
this 9-cent rate, in combination with a
rate from Rochester to Norwood. n.
Y. a virtually secret and very low rate
from Norwood, n. Y. to Burlington.
and secret local rates therefroni, the
STANDARD has been able to supply CEN
trail and northern Vermont with oil at
IL rate Of from Is to II cents per hun
dred pounds. whereas no independent
refiner could reach thrt territory from
western Pennsylvania save by 4 rate
varying from 35 to 30 cents per hundred
pounds.
The saving to the Standard during
1904 by the secret rate from Clean to
Rochester alone was $4,000. This ana
other less important rates from plcan
were unknown to the INDEPENDENT re-
finers and were not published on the
ground that they were wholly state
rates; yet in fact they were used for
oily consigned to points beyond The
state boundary Of New York. Further
more. all the shipments from Clean on
these secret rates We're nd-hillel-
l. e.. the rates were not shown Oh the
wayhills.
go The Standard Oil Company has
maint aimed absolute control Of almost the
whole section of the country south OF th.
Ohio river and east Of the Mississippi by
means Of secret rates and open discrLnli-
nations in rates from Whiting. Ind.
For example, the published tariff rate
frcrl Whiting. Ind. the great western re-
| tinery OF the Standard. TO BirIningl nm,
| Ala, was "A cents per hundred pounds.
| Tor at least ten years the Standard. by
| means OF a secret combination OF rates by
| way of Grand junction, Tenn, over Gle
| lines Of tie Chicago & Eastern lllinhs.
| the Illinois Central and the Southern
| for 23i. cents. The Tol edo competitor no
| farther distant, Lad to Pay a. cents.
a great area in the South has been
reached by this same SECRET conformation
of rates averaging one-fOurth less than
| the published rates. The total saving to
the Stand2ri on these rates has been
about $4,000 Fer year
Again. the open rate from Whiting to
Evansville. Ind. has been for many years
IL cents. The Standard as for about ten
years shipped ol to Evansville for local
use and Tor many points beyond IN The
Southeast at so-called state rates of 6
cents and 81 cents. The freight paid by
$4,000 per year less than the open rate.
The rates to this same Territory from
the inder endent refining points at Toledo
and Cleveland were from to % cents
per hundred pounds. or from y to IA
cents a gallon higher than the rate re-
ceived by the Standard:
Tn. records OF the Chicago & Eastern
Illinois Railroad Company show plainly
that these Grand Junction and Evansville
rates were intended to be secret. We're
given for the sole benefit of the STANDARD
the knowledge of Standard officials
(D The Standard Oil Company has for
at least ten years shipped oil from Whit
ing to East St. Louis, ILL.,. at rate OF
s to Ga cents on three OF the live rail-
roads running between those places,
while the only duly published rate on AZ
road, has been IS cents during "a all that
period. The saving to the Standard
amounted to about $4,000 in 1921.
For many years East St Louis has been
the gateway for oil shipments by the
rd nj @
from the independent refining points OF
Ohio to East st. Louis have been about
u cents higher than the rate from Whit.
ing, whereas on other conlmodit Ties or
cents more than Whiting.
Whiting is located in Indiana. about two
Louis is in Illinois, just across the river
frcE, St. Louis. The secret low rates
were given by the Chicago, Burlington &
Quincy. Chicago & Alton and ana Chicaso g
published, on the ground that they were
state rates. In dealing with these rates
ono Of the roads-the Chicago Alton
falsely waybilled the freight at Is cents.
and collected from the Standard at .
cents. The Chicago Il Eastern Illinois
blind billed at the G-cent rate. but 1t was
meme the less secret
81 In the Kansas-TerritOry field there
are some unfair open rates. The more I'M
purtant discrimination has been IN inc ar
hitrlry weights fixed by the railro2ds on
ton prevents the Kansas producer from
selling his crude oil, especially low gray
ity, advantageously in competition with
the fuel oil produced By the Standard
and the small local retineiS.
Crude oil is charged on tie bases Of -
pounds per gallon, its actual weight Is
about 10 rounds. Fuel oil produced by
the refineries is charged at ia pounds
it actually weighs about 80 pounds. y
| barrel OF crude Oil shipped from Kansas
to st. Louis is charged nearly 10 cents
more than a barrel of fuel oil; This diff
ference in freight charges rs equal to
more than third of the price OF low
grade Kansas crude.
This discrimination has existed for
aoout four years. 1t does not exist in
any other field. The legislation of Kan
shs IN 1870 put on end to it only 90 far as
sntpments within the state are conrned.
, W IN california direct rebates. as well
| ORGANIZATIONS by the of secret
. | Thn.n nave been given on oil.
6taa e sS repates and Determinations bene-
Gin 40 Tue standard to the extent of about
nn% an 1901: The Associated Oil Com
| Cory, sne Union Oil Company and some
ana liners OF oil also received rebates
naran.ISi et rates, but the Standard ap-
e fere.uE received as much as ali other in
!, me-, combined. These fayors were al
> ner 1n1u ~. denied the ordinary shin
on st,te 10" ra S,iapments to Arizona, rebates