The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-05-05

blind billed at the scent rate but 1t was
none the less secret.
s. In the Kansas-Territory field there
are some unfair open rates. The more
important discrimination has been in the
arbitrary weights fixed by the railroads
on crude oil and fuel oil. This dscrimna-
ton prevents the Kansas producer from
selling his crude oil, especially low gray
ity, advanta geously In competition with
the fuel oil produced by the Standard and
the small local refners.
Crude oil Is charged on the basis of "a
pounds per gallon; Its actual weight Is
about ~ pounds. Fuel oil produced by
the ret1neries is charged at ga pounds; 1t
actually weighs about rs pounds. A barrel
of crude oil shipped from Kansas to st.
Louis Is charged nearly 10 cents more
than barrel OF fuel OIL this difference
in freight charges is equal to more than
one-thrd of the price OF low-grade Kan
sas crude.
This discrimination has existed for
about four wears 1t does not exist in
any other field The legislation of Kansas
in 1905 put an end to 1t only so far as
shipments within the state are con-
cerned.
g. In California direct rebates, as well
as Determinations by the use of secret
rates. have been given on oil.
These rebates and determinations BEN
Gifted the Standard to the extent of
about 100000 in 1904. The Associated OIL
company, the Union OIL company. and
some consumers of oil also received re-
bates and secret rates. but the Stand
ard apparently received AS much as all
other interests combined. These fayors
were almost invariably denied the ordi-
nary shipper. On shipments to Arizona.
rebates on state rates were received by
the Standard In connection with inter-
state shipments; this virtually was a re-
bate on interstate business. Owing to the
fact that fuel oil is extensively sold UNI
der contract on the pacific coast, rate
determinations obtained by a few ia
vored shippers have enabled them to mo-
nopolize markets for long periods.
Great Injury.
Great injury has been inflicted by rail-
roads upon independent shippers through
determinations in the distribution of tank
cars.
I. Open published rates from Whiting
into large part of the United States
have given the Standard Oil company an
unfair advantage of from ! to ~ cents
per hundred pounds.
This discrimination seriously limits in
dependent refners In some markets, and
shuts them out completely from other
markets. II is accomplished by the use OF
commodity rates-that Is, rates which ap-
ply only to petroleum and its products
and by refusal to pro-rate.
The true principle of commodity rate
making Is to more nearly equalize COM
pettive conditions, but the general effect
of It's use In the case of oil has been
to give the Standard relatively much
lower rates TO common markets than
those given to its competitors.
For instance, in shipments to New Or
leans and other points on the lower Mis-
slssippi river and the gulf, the ordinary
class rates on similar low-grade articles
from Toledo, Cleveland and Pittsburg are
only 2 cents about the rates from Whit
ing. The commodity rates on oil are from
g1h TO 1872 cents above the rates from
Whiting. The normal principle OF com
modify rates would make the charge the
same from all four of these points, instead
of increasing the differential.
Prior to the establishment of the Whit
ing refinery the railroads west Of the
Mississippi pro-rated with the eastern
roads on oil shipments from the Pennsyl-
vania and Ohio districts into most parts
of the west and southwest. After the es
tabishment of the Whiting refinery these
roads refused to pro-rate from points east
of Whiting. This refusal increased the
natural disadvantage of the eastern re-
fineries from / to 1912 cents per hundred
mounds This discrimination IL the more
conspicuous in the case OF the south