Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1906-05-10

49,
leased only on such terms and for
such periods as will enable the gov.
eminent to entirely control them.
Garfeld's Report.
Washington. : In summarizing
his report Commission Garfield
speaks of his personal visit to the
oil fields, and of the great mass of
data obtained by him either personal.
ly or through agents of the bureau of
corporations. The preliminary study
of this was transportation, which en-
tiers so largely into the cost of the
finished product, and hence a most
important factor in competition.
Taking up the subject of the output
of refined oil, Mr.. Garfield finds that
it amounts to about 26, 900. 900 barrels
annually, of which the Standard Oil
Co., directly and indirectly, controls
about 23,000,000, and approximately
the same proportion of the other fin.
ished products of petroleum.
Continuing, the report says:
The Standard claims that the location
Of its refinsries and the use of pipe lines
are natural advantages to which 1t is
justly entitled by reason of the energy
and foresight of its managers. While in
a measure that is true, it must not be
forgotten that these advantages were In
part obtained by means of unfair COM
petitive methods after years of fierce in
dustrial strife.
The development of the pipe line sys-
tenn by the Standard on Co. was the re,
suit of special agreements with railroad
companies. Furthermore, those so-called
natural advantages have been. and are
being greatly increased by discrimina,
tons in freight rates. both published and
secret, interstate and state, which give
the Standard monopolistic control in the
greater portion of the country, and which
so limit competition as to practically pre-.
vent the extension of the business OF
any Independent to a point which even re-
motley endangers the supremacy of the
Standard.
An Immediate result of this delimitation
of the competitive area is shown by the
prices of ordinary illuminating oil
| throughout the country. After. deducting
the freight rate, the price of such oil
a gallon. higher in the n~on-competitive
than in the competitive fields. A reason
able profit upon refined oil is about one.
half q cent per gallon. i Is clear tn hhs
noncompetitive fields. This m~onopolistic
control extends from the well of the pro-
Queer to the doorstep Of the consumer.
Mr.. Garfield cites the fact that the
New York Central Railroad Co. was
the only one which refused for itself
and affiliated lines to give access to
records of state rates.
At the beginning Of the investiga
ton, he says, the Standard Oil Co
denied that it had obtained in recent
years, or was now obtaining any re
bate or other transportation discrim
nation as against its competitors, and
yet, he says, a most careful re-
view Of the facts and the explanation
leads to the conclusion that the Stand
ard Oil Co. has habitually received
from the railroads, and is now receiv
ing secret rates ard other unjust ant
illegal determinations.
In 1904 these secret rates saved to
the Standard Oil Co. three-quarters O.
a million dollars, representing the
differpnce between the open rates ant
the rates actually paid.
These determinations" he says
"have been so long continued, so Sc
cret, so ingeniously applied to new
conditions of trade, and so large II
amount as to make it certain tina
they were due to concerted action b.
the Standard and the railroads.
He a y further that the STANDARD
Oil Co. is receiving unjust discrimi.
nations in the matter of open. rates, thu
published rates from the LEADING
Standard shipping points being rela
lively much lower than rates from tn
shipping points of its competitors.
The report concludes as follows:
Nevertheless, the widespread discrimi
nations in open rates still in force leav
the Independents in serious disadvantage
The investigation has only incidentally
touched state shipments from distrib
uting c%enters, particularly in less thai
carload lots. The few instances examines
suggest the probability Of discrimination
on such shipments which, taken In con
nection with through traffic, may resul
in discrimina tons on interstate business
have cited these particular instance
to show the various methods by wh1cl
determinations are obtained, n to ca!
particular attention. to methods which, !
legal. are mere devices to obtain .exactl
the same result as would be obtained b
rebates paid on interstate business. An,
freight discrimination, whether 1t be stat
or Interstate, tends to give. control o
markets to the preferred shipper, an
makes monopoly possible. If existing lay
merely prohibits a special device for OF
tanning discrimination. and permits tn
same result to be accomplished In a dit
ferent way, then the legislation is to tina
, extent a sham.
This investigation has shown very clea:
ly one glazing defect in the interstat
m law. viz: The method of film
and publishing tariffs. Although a tart
or a rate has been filed with the commits
sion In compliance with the terms of tn
law, none but the favored shipper ma
know of it's existence. Tariffs may b
made Ind rates may be combined In sue
manner as to make 1t practically impos
sible for the ordinary shipper to fin
them. AS long as the state rates are nc
required to be made public, and shipper
use such rates in combination with In
terstate rates. all manner of devices t
eyade the ,purpose of the law are possible
All state rates used in connection wit
interstate shipments should be filed wit
the Interstate commerce commission, an
q radical change should be made In tn
direction OF simplifying tariffs and ]
methods Of posting and filing them.
Signed by the President.