The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-12-30
Bure au Of Corporations
Answers PresidentofIn-
diana Standard OilCo.
DECLARES FINE
WAS JUSTIFIED
Tells OF Six-Cent Rate to St
Louis, Which Killed All
Competition and Made
Many Million Dol
lars for the Oil
Trusr.

WASHINGTON, D.. c., December co.
The Bureau OF Corporations has iss cd
a belated reply to James A. Moffett,
president OF the Standard OIL Com
pany, OF Indiana, who declared at the
time the fine OF $29.3i0.O00 was imposed
against his company by, Judge Landis
that 1t was not Justified. as there was
no discrimination Involved In the rate
paid on the shipment OF oil from Chi.
cago to East st. Louis. and that the
action OF the court was based oil mere
technical violation OF law.
Commissioner Herbert Knox Smith
presents statement of facts in oppo-
sition to this view not only to show
that discrimination was practiced.
but that 1t was practiced with the
pany and of the Chicago and Alton
Railroad Referring to Mr.. Moffatt's
statement, the commissioner says: APP
parently his position is that, because
no one else is known to have paid the
published lS-cent rate from Whiting to
East st. Louis. while his company was
paying 6 cents. therefore there was no
discrimination.
Caused Monopoly.
On the contrary. this very situation
proves that not only was there dis
Termination. but this discrimination had
worked out it's logical result. so that
no one else could slip at is cents in
competition with the Standards cent
rate. Precisely this and other secret
determinations in shipments from
Whiting produced that complete state
of monopoly in the vicinity of Chicago
which the Standard now calmly desig-
mates as absence Of discrimination
This cent Chicago and Alton rate
was rebate in essence, II not in
form. and both in essence and in form
| IL was a discrimination of the most
severe and successful type.
The s cent rate given IN the unified
Especial billing order" he says, was no
notice TO any one of the unpublished
6 cent. rate, nor, he added, was 1t, In
tended To- be.
Secret Rate.
In conclusion. the commissioner says
| .Tllis Alt.,l rate. therefore. was sub.
| stantialiy a rebate, was the most eff
! fective kind of discrimination, because
it killed out all competitions; was secret
and was concealed by secret methods
is sought to be justified only By .ar-
| other like secret rate which also wa:
| covered by secret methods; was only
one of a great system OF discriminatory
rates practically covering the countr:
| (Which the railroads dared not mann
tain In the light OF publicity. and II
Its ingenuity, secrecy and complete ef.
fectiveness constituted as extreme {
Violation of both the letter and spirit
4 Of the auti-rebate laws as could we'll bs
imagined
Drove Ont CompctitOrn.
THE Standard undersold competitor
/ in the great Southwest by means o
this 6-cent rate to the st. Louis gate
way, and, having undersold them ant
4 driven them out of that territory. the!
4 then raised prices to a monopoly CURE
4 SO that it's marketing concern Their
I. was making over 690 per cent. on IT.
! capital stock in 1904, and TOR Ions
/ series of years had been making pro
fits extortionately high. These profit
/ were thus based on this secret dis
5! elimination which had been In exist
ence over fourteen years. The on1oS
4 t.ment of this discriminatory rate wa
well worth many millions Of dollars Z
4 the Standard. and most emphaticall!
4 justified the imposition of great mn
| when that rate. was finally discoveret
nnd conviction was secured thereon.