The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1906-05-17
Oil Trusts SECOND
ANSWER TO ROOSEVELT
MADE IN A LONG STATEMENT
ISSUED TO ITS SHARE
HOLDERS.

Positive Denial of the Charge That
Standard Oil Company Benefited by
Secret Rates for Transportation Of Its
Products--Its Great Prosperity Due
to Its Economic and Elaborate In
dustrinl Organization Covering Every
Detail of Transportation, Manufacture
and dministration-Rates ON the
New Haven Road--Presidept Mellen
Quoted.
New York, May 16.-The Standard
OIL company to-day issued to it's share
holders a statement in reply to the
special message recently sent to con-
gress by President Roosevelt, and the
report on the oil industry by Commits
sioner Garfield of the bureau of corr
pora ations, which accompanied it, The
statement denies positively the charge
that the Standard OIL company bene-
fitted by secret rates for the transpor-
tation of its products. 'Whatver meas
ure of prosperity it has enjoyed, says
the statement, SIS not traceable to il
legal or reprehensible methods, but to
its economic and elaborate industrial
organization, covering, as it does, every
detail Of transportation and admins
tration."
The statement declares. that the es-
innate that the company saves $3.50, 900
year through the operation of GER
tain freight rates could only have been
arrived at by theorizing.
The statement in part says:
"On May IA the president of the
United States submitted special mes
sage to congress transmitting report
to him by Commissioner Garfield, Of
the bureau Of corporations, in which
the commissioner charges that this
company has habitually received from
the railroads, and is now receiving, Sc
cret rates and other unjust and Illegal
Determinations.
Preliminary disclaimers were at once
made to Commissioner Garfield's allie
cations, but we feel that you may ma
turally anticipate more elaborate and
technical reply, which we submit here
under.
'gThe large sums Of money which Mr..
ings to the Standard through the oper-
alton of certain freight rates-sums
which the president aggregates as $780,
D00-could only have been arrived at by
lheorizing.
If the claim of Commissioner Gar
field was true that the Standard is
favored by open rates, it would in
volve not only coIlusion between the
railroads and the Standard Oil company
but collusion by the railroads with each
other. 1t would also involve the con-
sent of railroad not reaching Whit
ing. Ind, for example, to the estab-
lishment of rates out of that point,
which would be injurious to business
out OF another point at which the con-
senting railroad was receiving traffic.
To bring about such an arrangement
would be impossible. 1t may be said
generally that there Is a competing re-
finery In almost every section Of the
limited states where the Standard has
a. refinery, except at Whiting, Ind.
'tNo rates can be applicable to the
Standard which will not be equally APP
nlicable to the Standards competitors.
after an Investigation of shipments
during a period of about fifteen years
over more than 100000 miles of railroad
the commissioner is not able to show
that the Standard Oil company received
"a single rebate on it's interstate ship
ments He has only been able to call
attention to a few instances in which
the rate situation, in his opinion, re-
ouired explanation. This explanation
was freely given, and we believe would
he satisfactory to any man familiar
with transportation problems.
"If the commissioner had any doubts
as to the regularity of these rates he
might have brought them to the atten-
tion of the interstate commerce COM
mission when the questions at issue
could have been heard and determined.
in the absence of such determination
1t is surely not within the limits of
fairness for the bureau of corporations
to cast aspersions upon a great corpor-
alton.
tsThe company owns and controls only
a very moderate percentage of the
crude production Of the United States,
and. with at least one hundred and
twentv-flve rival refineries in existence,
IT is a palpable absurdity to call it a
,nonopoly. For the last quarter Of a
century more than sixty per cent. Of its
OUTPUT has been shipped to foreign
countries. In creating and sustaining
this vast foreign trade the company
has encountered innumerable obsta-
rles and incessant competition from
other petroleum industries possessing
the advantage of geographical location
and cheaper labor, and which are often
+ines developed under the fostering
care of their respective governments
If the company maintains a gratifying
percentaae of the worlds commerce it
is because it keeps its agreements and
delivers products of reliable quality at
reasonable prices. Whatever measure
of prosperity It has enjoyed is not
traceable to Illegal or reprehensible
methods, but to its economic and elah-
crate industrial organization, covering
a sit does every detail of transporta-
tion. manufacture and administration.
Taking up the report of Commission
er Garfield under the various heads, the
statement says:
New England
"Mr Garfield opens his detailed in
stances with the alleged refusal of the
New York, New Haven and Hartford
railroad and the Boston and Maine