The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1906-05-05
JOURNAL SATURDAY 1906

| from Whiting TO Grand Junction will
reduce by about three-fourths the
Standards advantage over competing
refiners at Toledo, Cleveland and vicin-
lily on shipments into 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
refiners of western Pennsylvania has
been CORRESPONDENCE reduced
4. The cancella ton of the secret rate
from Whiting to Evansville will reduce
the Standards advantage over Compel
| ing reflners at Toledo on shipments in
to many other parts of the south from
about IA cents to IL cents per hum
dred pounds. The advantage which the
Standard has enjoyed over competitors
in Cleveland Pittsburg and other indie
pendent refining points has been CORE
spondingly reduced.
5. The cancellation of the secret rates
the substitution of the rate OF 10
cents will reduce the Standards adj
vantage from IL cents to cents per 100
pounds, with a corresponding reduction
of its advantage over more easterly re-
filming points.
s. The railroads have advanced their
published rates from Whiting into
northern Indiana and Michigan by
about or cents per 100 pounds, and
have put the rates on practically an
equality, distance considered, with
those from Toledo and more easterly
points.
z The New York, New Haven. & Hart
ford railroad has resumed the practice
of prorating oil, thereby reducing the
average freight charge to independent
refiners of western Pennsylvania and
Ohio on shipments into a large part
of Connecticut, Rhode Island and Mas
sachusetts by about cents per 100
pounds. This will materially increase
their opportunity for competition with
the Standard Oil company in that terri
| tory. The interstate commerce COM
mission recently denounced the former
| practice and recommended a change.
g. A large number of the secret rates
of California railroads have been pub
lished as open rates While under the
contract system of selling fuel oil gem
orally employed in that region the con-
Germs formerly enjoying the secret rates
continue to benefit from them, this re-
vision of tariffs obviously operates to
the benefit of independent shippers on
future business. A number of discrep-
| ancies on open rates on the Pacific
coast have also been adjusted.
The changes above described, with
others of less Importance, mean much
more than the increase of freight
charges to the Standard They show in
| striking fashion the good which has al
ready resulted from this investigation,
| They put independents upon a fairer
| footing, and make competition possible
in territories heretofore inaccessible.
Nevertheless, the widespread dis
ordinations in open rates still in force
leave the independents at serious dis
advantage. The investigation has only
incidentally touched state shipments
from distributing centers, particularly
in less than carloads. The few in
stances examined suggest the proba-
bility of determinations on such ship
ments which, taken in connection with
| through traffic, may result in discrlm-
nations of interstate shipments,
have cited these particular instances
to show the various methods by which
| Determinations are obtained, and tt
call particular attention to methods
which, if legal, are mere devices to OBJ
tain exactly the same result as would
he obtained by rebates paid on inter
state business. Any freight dlscrimin-
alton, whether 1t be state or interstate
| tends to give control of markets to the
preferred shipper, and makes monopoly
possible. If existing law merely pro-
hibits a special device for obtaining
discrimination, and permits the same
result to be ACCOMPLISHED In different
way, then the legislation is to that ex-
tent a sham.
This investigation has shown very
clearly one glazing defect in the inter
state commerce law, viz: the method
Of fling and publishing tariffs. AL
though tariff or a rate has been filed
with the commission in compliance
with the terms of the law, none but
the favored shipper may know of Its
existence. Tariffs may be made anC
rates may be combined in such man
ner as to make 1t practically impossi-
bile for the ordinary shipper to fine
them. AS long as the state rates are
not required to be made public, ant
shippers use such rates In combination
with interstate rates, all many Of de-
vices to evade the purpose of the law
are possible. All state rates use In
should be filed with the interstate COM
merce commission and d radica
change should be made in the direction
of simplifying tariffs and in methods
of posting and filing them.
Very respectfully
James Rudolph Garfield,
Commissioner of Corporations
The President.