The Montgomery tribune. (Montgomery City, Mo.) 1892-1910, 1906-05-11

leased only on such terms and for
such periods as will enable the gov.
eminent to entirely control them.
Garfeid's Report.
Washington. In summarizing
his report Commissio ner Garfield
speaks of his personal visit to the
oil fields, and of the great mass Of
data obtained by him either personal.
ly or through agents Of the bureau Of
corporations. The preliminary study
Of this was transportation, which en-,
ters so largely into the cost of the
finished product, and hence a most
important factor in competition.
Taking up the subject Of the output
Of refined oil, Mr.. Garfield finds that
1t amounts to about 5000, 900 barrels
annually, Of which the Standard Oil
Co., directly and indirectly, controls
about 23,000,000, and approximately
the same proportion of the other fin
ished products of petroleum.
Continuing, the report says:
of it's refineries and the use of pipe lines
are natural advantages to which 1t is
justly entitled by reason of the energy
a measure that is true, 1t must not be
forgotten that these advantages were In
part obtained by means of unfair COM
petitlve methods after years OF fierce in
dustrial strife.
The development of the pipe line sys-
suit OF special agreements with railroad
companies. Furthermore, those so-called
natural advantages have been, and are
being greatly increased by discrimina-
tions in freight rates, both published and
secret, interstate and state, which give
the Standard m~onopolistic control. in the
so limit competition as to practically pre-
vent the extension of the business Of
any Independent to q point which even re-
motely e~ndangers the supremacy of the
An lmmedlate result Of his delimitatiS ion
tHh liSsn the Country. AFTER dedfuctins
the freight rate, the price of such oil
a gallon higher in the non-competitivs
than in the competitive fields. A reason
able profit upon refined oil Is about one.
exorbitant profits are obtained in the
| noncompetitive fields. This m~onopolistic
control extends from the we'll OF the pro-
Queer to the doorstep OF the consumer.
Mr.. Garfield cites the fact that the
New York Central Railroad Co. vas
the only one which refused for itself
and affiliated lines to give access to
records of state rates.
At the beginning Of the investiga-
ton, he says, the Standard Oil Co.
denied that it had obtained in recent
years, or was now obtaining any re-
bate or other transportation discrim-
nation as against its competitors, and
yet, he says, a most careful re-
| view of the facts and the explanations
leads to the conclusion that the Stand
ard Oil Co. has habitually received
from the railroads, and Is now receiv-
ing secret rates and other unjust and
illegal determinations.
In 1904 these secret rates saved to
the Standard Oil Co. th~ree-quarters OF
a million dollars, representing the
difference between the open rates and
the rates actually paid.
"These determinations" he says,
have been so long continued, so Sc
cret, so ingeniously 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 railroads.
He say further that the Standard
Oil Co. is receiving unjust discrimi-
nations in the matter of open rates, the
published rates from the leading
Standard shipping points being rela'
lively much lower than rates from the
shipping points of its competitors.
The report concludes as follows:
Nevertheless. the widespread discrimi-
the independents in serious disadvantage.
The Investigation has only incidentally
touched state shipments, from distrib-
carload lots. The few instances examined
suggest the probability of discriminations
on such shipments which, taken in con.
in determinations on Interstate business.
I have cited these particular instances
to show the various. methods by which
particular attention to methods which. II
legal, are mere devices to obtain exactly
the same result as would be obtained by
rebates paid on interstate business. Any
freight Discrimination whether 1t be state
or Interstate, tends to give control OF
MARKETS n, to the PREFER sn,Gpar, a am
merely prohibits a special device for OBJ
tanning discrimination. and permits the
ferent way, then the legislation is to that
extent a sham.
This investigation has shown very clear
~ one BlarlnS OeIect IN tne lnteTSLdte
| law. viz. The method of filing
and publishing tariffs. Although a tarff
or a rate has been filed with the commits
sion in compliance with the terms of the
| law, none but the favored shipper nay
know Of its existence. Tariffs may be
made and rates may be combined in such
sible for the ordinary shipper to find
them. As long as the state rates are not
required to ,a be made "a publ pubbllic, t and w sh1tiBBps r..
| terstate rates. all manner Of devices to
| evade the purpose of the law are possible.
Interstate shipments should be filed with
| the Interstate commission, and
a radical change should be made In the
| direction Of simplifying tariffs and In
| methods of posting and filing them.
1 Signed by the President.
Washington. President Roose-