Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1906-05-08

Kansas in 1906 put an end to 1t only
so far as shipments within the state
are concerned.
California Secret Rates.
60 In California direct rebates, as
we'll 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 Asso-
ciated Oil company the Union Oil COM
pany, and some consumers Of oil also
received rebates and secret rates, but
the Standard apparently received as
much as all other interests combined.
These 5avors were almost invariably
denied the ordinary shippers. On ship
ments to Arizona, rebates on state
rates were received by the Standard in
connection with interstate shipments;
this virtually was rebate on inter-
state business. Owing to the fact that
fuel oil is extensively sold under con-
tract on the Pacific coast, rate dis
ordinations obtained by few favored
shippers have enabled them to monopo-
lie markets for long periods.
Great injury has been Inflicted by
railroads Upon Independent shippers
through DETERMINATIONS in the distribu-
ton of tank cars
90 Open published rates from Whit
ing into a large part of the United
States have given the Standard Oil
company an unfair advantage Of from
to IL cents per hundred pounds.
This discrimination seriously limits
independent refiIers in some markets,
and shuts them out completely from
r,&l Al, ~ a. NH h,d NV
the use of commodity rates-th that is,
rates which apply only to petroleum
and its products--and by refusal to
prorate.
The true principle of commodity
rate making is to more nearly equalize
competitive conditions, but the gener-
al effect Of It's use In the case of oil
has been to give the Standard relative
ly much lower rates to common mar
kets than those given to its competi-
tors.
For instance, in shipments to New
Orleans and other points on the lower
Mississippi river and the Gulf. the or
binary class rates on similar low
grade articles from Toledo, Cleveland,
and Pittsburg are only 2 cents above
the rates from Whiting. The commo-
dity rates OF, oil are from 9h to 13h
cents above the rates from Whiting.
The normal principle of commodity
rates would make the charge the same
from all four of these points, instead
of increasing the differential.
Prior to the establishment of the
Whiting refinery the railroads west Of
the Mississippi prorated with the east
ern roads on oil shipments from the
PENNSYLVANIA and Ohio districts into
most parts of the west and southwest.
After the establishment Of the Whit
ing refinery these roads refused to
prorate from points east of Whiting.
This refusal increased the natural dis
advantage Of the eastern refineries
from 1 to 1917 cents per hundred
pounds This discrimination Is the
more conspicuous in the case Of the
southwestern railroads because they do
prorate with the railroads from Chi
cago to st. Louis on oil from Whiting
Abolish Secret Rates.
Most of the secret rates, and some
of the open determinations discovered
| by the bureau were abolished by the
railroads shortly after such discovery.
The more important changes thus far
noted are as follows:
| l. The secret rate Of cents per
barrel from Clean to Rochester and
| 10 cents per barrel from Olean to Buff
falo has been charged to an open rate
of 20 cents per barrel to Rochester and
| II cents per barrel to Buffalo on ship
ments of all refined Oil products. and
the practice of bliud-billing of oil has
been discontinued by the Pennsylvania
railroad.
2. The low tank-car rates made by
the Rutland railroad from Norwood to
Burlington, Rutland, and Bellows
Falls, VT. have been made applicable
on oil in barrels.
Reduce Standards Advantage.
8. The cancellation Of the secret
rate from Whiting to Grand Junction
will reduce by about threefourths the
Standards advantage over competing
refiners at Toledo, Cleveland, and vi.
cinity on shipments into q large part
of the south. Instead Of Ia or Is cents
the differential against them is now
or 4 cents per hundred pounds. while
the disadvantage of competing rein.
ers of western Pennsylvania has been
correspondence reduced.
4. The cancellation of the secret
rate from Whiting to Evansville will
reduce the Standards advantage over
competing refners at Toledo on ship
ments into many other parts of the
south from about 6M cents to 31h
cents per hundred pounds. The advan
tage which the Standard has enjoyed
over competitors in Cleveland, Pitts
burg, and other independent refining
points has been correspondingly re
duced.
s. The cancellation of the secret
rates from Whiting to East st. Louis
and the substitution of the rate of 10
cents will reduce the Standards add
vantage from II cents to cents pei
hundred pounds with a corresponding
reduction of its advantage over more
eaeterly refining points.
/ 8. The railroads have advanced
their published rates from Whiting in
to northern Indiana and Michigan by
about or 8 cents per hundred
pounds, and have put the rates on
| practically an equality, distance con-
| siEered with those from Toledo and