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

..-.. 1880.
OF the energy and foresight of It's man
ayers. While In a measure that is
true, it must not be forgotten that
these advantages were in part obtain
ed BY means OF unfair competitive
methods after years OF fierce Industrial
strife.
Pipe Line System.
The development Of the pipeline
system by the Standard Oil company
was the result Of special agreements
with railroad companies. Furthermore,
those so-called natural advantages
have been and are being greatly in
creased by DETERMINATIONS In freight
rates, both published and secret, in
terstate and state, which give the
Standard rnonopolistic control in the
greater portion Of the country, and
which SO limit competition as to prac-
| titally prevent the extension of the
business OF any independent to point
which even remotely endangers the
supremacy Of the Standard.
| An Immediate result of this delim-
itation of the competitive area is
shown by the prices of ordinary illum-
mating Oil throughout the country.
After deducting the freight rate the
price of such oil is usually from 2
cents to cents a gallon higher in the
noncompetitive than in the competi-
tive fields. A reasonable profit upon
refined oil is about one-half cent per
gallon. It is clear that exorbitant pro-
fits are obtained in the noncompetitive
fields. This nonopolistic control ex-
tends from the wellfof the producer to
the door step of the consumer.
Freight Rates.
| The facts regarding rates have been
obtained by the examination of thou
sands of entries upon railroad records.
With but single important exception,
railroad companies have, upon appli-
cation OF the bureau of corporations,
given access to records of both state
| and Interstate business. The New
York Central company refused for it.
self and its affiliated lines to give ac-
cess to records of state rates. At the
beginning Of this investigation the
officials of the Standard Oil company
stated that that company had not OBJ.
1 tanned in recent years and was not
now obtaining any rebate or other
transportation discrimination as
against its competitors They invited
the most careful investigation Of the
subject. :
upon the request of it's attorney. all
the essential facts discovered by this
bureau were presented to the com
pany at the close of the investigation.
and an exhaustive statement relating
thereto was made by its chief trafic
| ofhcer. There was no denial of the
facts found, but explanations of partic.
ular situations were offered, and It
was urged that the facts did not show
any violation by the Standard of the
letter or spirit bf the Interstate com.
merce law. A most careful review of
the facts and the explanations leads
to the following conclusions:
Receive Secret Rates.
The Standard Oil company has Ia.
bitually received from the railroads
and is now receiving, secret rates and
other unjust and illegal discrimina.
tons.
During 1904 the Standard saved
ABOUT three-quarters of a million dol
lars through the secret rates discoy-
cred by the bureau, and of course
there may be other secret rates which
the bureau has not discovered. This
/ amount represents the difference be.
, tween the open rates and the rates
actually paid Many of these discrim.
nations were clearly in violation Of
the interstate commerce law, and 9th.
ers, whether technically illegal or not,
had the same effect upon competitors.
On some state business secret rates
were applied by means Of rebates.
These determinations have been 50
long continued, so secret, so ingeni-
ously applied to new conditions Of
trade, AMI so large in amount as to
make it certain that they were due to
concerted action by the Standard and
the railroads.
The Standard Oil company is re-
ceiying unjust determinations in
open rates.
The published rates from the lead
| ing Standard shipping points are rela-
lively much lower than rates from the
shipping points of its competitors.
The advantage to the Standard over
| its competitors from such open dis
examinations is enormous, probably as
| important ! as that obtained through
| the secret rates.
If an unfair discrimination be OF.
tanned by one shipper through de-
vice which in itself Is seemingly not
prohibited by law, that fact shows
that the law is defective and should
be strengthened; it does not show
that the discrimination is proper or
just.
Railroads Giving Rebates.
The following are few Of the most
important determinations and the
methods by which they were obtained.
| "a For about ten years the New
England territory has been IN control
of the Standard Oil company by rea-
sor of the refusal Of the New York,
New Haven and Hartford road and of
the, Boston and Maine road, on all but
few divisions, to prorate--i. e.. to
Join in through rates. on oil shipped
from west of the Hudson river, and
by means Of the adjustment of pub
lished rates.
The Standayd is entitled to the ad-