The news-democrat. (Providence, R.I.) 1906-1909, 1906-05-17

The answer In part Is as follows;
ON May II the president OF me Ihi'su "a
congress transmitting a report 10 him by
Commissioner GARFIELD of the bureau OF
corporations. In which the commissioners
charges that this company has habitual-
ly received from the railroads and Is now
receiving secret rates and other unjust
and illegal determinations
RESULT OF THEoRIZING.
Preliminary disclaimers were at once
lions. but we feel that you may naturally
anticipate a more elaborate and technical
reply. which we submit hereunder.
"The large sums Of money which Mr..
GARFIELD sets down as one years savings
TO the Standard through the operation
of certain freight rates-sums which the
bays arrSsa as So
IF the claim OF Commissioners Garfield
was true that the Standard is favored by
open rates. IL would involve not only col
fusion between the railroads and the
Standard OH company. but collusion by
the railroads with each other
ut would also involve the consent OF
railroad not reaching Whiting. Ind, for
example, TO the establishment of rates
out OF that point which would be In
furious TO business out OF another point
at which the consenting railroad was re-
ceivlng traffic TO bring about such an
arrangement would be impossible. II may
be said generally that there Is COM
Of the United states where the standard
had a refinery. except at Whiting, Ind.
mo rates can be made applicable to
the Standard which will not be equally
applicable to the Standards competitors.
DOESN'T SHOW REBATES.
AFTER an investigation OF shipments
during a period OF about Is years over
more than 100000 miles OF railroad. the
Commissioners Is not able 10 show that the
Standard oil company received single
rebate on its internal shipments. He has
only been able to call attention TO few
instances I'm which the rate situation, in
his opinion, required explanation.
This explanation was freely given. and
we believe would be satisfactory TO any
man familiar with transportation prob
lens.
'The company owns and controls only
a very moderate percentage OF the crude
production OF the United States. and with
At least l Iyai rs,,y renssT,es IN In ss existence e.
monopoly For. the last quarter OF a
century more than 60 per cent. OF its
output has been shipped to foreign coun-
tries.
"In creating and sustaining this vast
foreign trade the company has encoun-
tered innumerable obstacles and inces-
gant competition from other petroleum
industries possessing the advantages OF
geographical location and cheaper labor.
and which are oftentimes developed under
the fostering care OF their respective
governments.
WHY 1T SUCCEEDS.
''If the company maintains crafty
ing percentage OF the worlds commerce
Il is because II keeps its agreements and
delivers products OF reliable quality at
reasonable prices. Whatever measure OF
prosperity II has enjoyed is not traceable
10 illegal or irresponsible methods but
to its economic and elaborate Industrial
organi zation. covering as II does every
detail! OF transportation. manufacture and
administration"
Taking up the report OF Commissioner
Garfield under the various heads, the
statement says:
mfr. Garfield opens his detailed I'm
stances with the alleged refusal OF the
New York. New HaYen and Hartford
railroad and the BostdA and Maine rail-
road to prorate on oil, the inference be-
ing that this gave an undue advantage to
the Standard because the latter reached
coart points in New England by water
and distributed oil thence by rail to the
interior.
1T was pointed out to the Commissioner
that competitors distributed oil in the
same way from Bridgeport, Conn. en-
joying exactly the same rates to points
on the New Haven sytem as those paid