Los Angeles herald., 1906-05-05
GARFIELD HITS
H~.A~ -,
SlANUARD UIL
REPORT SHOWS UP RATE
GRAFT IN FULL
Company Headed by John D. Rooke-
fcller Throttles Independent Con-
Germs by Aid Of Big
Railroads
tcenlInuea from P.re one.l

GConfInued from PaRs ons.)
obtained in recent years or was now
obtaining any rebate or other trans
portation discriminatory as against its
competitors. and yet he says that a
most careful review of the facts and
the explanations leads to the conclusion
that the Standard Oil company has
habitually received from the railroads
and is now receiving secret rates and
other unjust and illegal discrimina-
tions.
In 1904 these rates saved to the
STANDARD three quarters of n million
dollars. representing the difference be-
tween the open rates and the rates
actually paid.
''These determinations" he says,
s'have been so secret, SO ingeniously APP
piled, to new conditions of trade. and
SO large in amount as to make it GER
tain that they were due to concerted
action by the Standard and the rail-
roads"
Other Determinations
He says further that the STANDARD Is
receiving unjust determinations in the
matter OF open rates, the published
rates from the leading Standard ship
ping points being relatively much more
than rates from the shipping points of
its competitors.
Mr.. Garfield then refers to seven in
stances OF important Determinations
in favor of the Standard in various
parts of the country and says that most
OF the secret rates and some Of the
open Determinations discovered by the
bureau were abolished by the railroads
shortly after such discovery.
After calling attention to the good
which already has resulted from the
Investigation, Mr.. Garfield says changes
effected have put the independents
upon fairer footing and make COM
petition possible in territories hereto
fore inaccessible. The report concludes
as follows:
Independents Helpless
<'Nevertheless the widespread dis
examinations 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 discrimi-
nations on interstate business.
II have recited these particular in
stances to show the various methods
by which determinations are obtained
and to call particular attention to
methods which if legal are mere de-
vices to obtain exactly the same results
as would be obtained by rebates paid
on interstate business.
ANY freight discrimination, whether
it be state or interstate, tends to give
control of markets to the preferred
shipper and makes monopoly possible.
IF existing laws merely prohibit a
special rate device for obtaining dis
elimination and permits the same re-
suit to be accomplished in a different
way, then the legislation Is to that eff
feet sham.
Use Secret Tariff Rates
This investigation has shown very
clearly one glaring defect in the inter-
state commerce laws. viz: The method
of filing and publishing tariffs. AL
though tariff or rate has been filed
with the commission In compliance with
the terms OF the law none but the fav-
ored shipper may know of its exist
ence.
Tariffs may be made and rates may
be combined in such manner as to make
1T practically impossible for the ordin-
ary shipper to find them.
"As long as the state rates are not
required TO be made public and ship
with the interstate rates, all manner
of devices to evade the purpose of the
law are possible. All state rates used
in connection with interstate shipments
should be filed with the interstate COM
merce commission and a radical change
should be made in the direction of sim
pltfying tariffs and in methods of post
ing and fling them"
Garfield Gives Details
Explaining more in detail the result
of his investigation, Commissioner
Garfield said:
''The general result of the investiga-
ton has been to disclose the existence
of numerous and fragrant discrimina-
tions by the railroads in behalf Of
Standard Oil company and its affiliated
corporations. With comparatively few
exceptions. mainly of other large con-
Germs in California, the Standard has
been the sole beneficiary of such dis
examinations.
In almost every section of the coun-
try that company has been found to
enjoy some unfair advantages over its
competitors and some of these dis
crirninations affect enormous areas.
DETERMINATIONS in the transporta-
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