Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-05-17
STANDARD OILS REPLY
A SPECIFIC DENIAL OF colrnIs-
sIoNER aARFIELD's cHARaEa

The Standard OIL Company issued at New
York yesterday TO its shareholders state
ment In reply to the special message re-
Gently sent to Congress by President Roose-
welt. and tho report on the country's oil In
dustry by Commissioners Garfield Of the
bureau Of corporations. which accompanied
1t. The statement 10 signed by C. N. Pratt,
secretary. and was issued by order OF the
board Of directors. It denies positively the
charge that the Standard OIL Company ben
efited by secret rates for the transportation
OF It's products.
Whatever measure OF prosperity It has
enjoyed" says the statement, els not trace
able to illegal or reprehensibie methods. but
to its economic and elaborate Industrial or
ganization. covering, az 1t does, every de-
tail of transportation, manufacture and adj
mintstration."
The statement declares that the estimate
that the company saves s7dO0OO a year
through the operation OF certain freight
rates could only have been arrived at by
theorizing.
The statement. in part. says:
IF the claim Of Commissioner Garfield
was true, that the Standard Is favored by
open rates. it would involve not only col
fusion between the railroads and the Stand
ard OIL Company, but collision by the rail-
roads with each other. It would also in
volve the consent OF railroad not reach
ing Whiting, Ind, for example, to the es-
tablishing Of the rates east of that point
which would be injurious to business out of
another point at which the consenting rail-
road was receiving traffic. To bring about
such an agreement would be impossible. 1t
may be said, generally, that there Is a COM
peting refinery in almost every section OF
the United States where the Standard has
a refinery except at Whiting, Ind.
mo rates can be made applicable to the
Standard which will not be equally ap-
plicable to the Standards competitors.
Peculiar Conditions Explained.
After an Investigation of shipments dur
ing a period of about fifteen years over
more than 100000 miles Of railway. the
commissioner Is not able to show that the
Standard OIL Company received a single re-
bate on its interstate shipments. He has
only been able to call attention to few
instances in which the rate situation in his
opinion required explanation. This ex-
PLANTATION was freely given, and we believe
should be satisfactory to any man familiar
with the principal problems.
IF the commissioner had any doubts as
to the regularity of these rates he might
have brought them to the attention Of the
interstate commerce commission, when the
questions at issue could have been heard
and determined. In the absence of such de-
termination 1t Is surely not within the linn
Its of fairness for the bureau OF corpora
lions to cast aSpersfonS upon a great cor
poration.
THE company owns and controls only
very moderate percentage of the crude pro-
duction of the United States, and, with at
least 125 rival refineries in existence, it is
a palpabfe absurdity to call it a monopoly.
For the last quarter of century more than
60 per cent OF It's output has been shipped
to foreign countries.
I'm creating and sustaining this vast for
eign trade the company has encountered in
Vulnerable obstacles and incessant competi-
ton from other petroleum industries pos
sessing the advantage of geographical 10
cation and cheaper labor, and which are
oftentimes developed under the fostering
care of their respective governments If
the company maintains gratifying per-
centage of the worlds commerce 1t is be-
cause 1t keeps its agreements and delivers
products of reliable quality at reasonable
prices