Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-12-30
esal there was no moral wrong about

legal there was no moral wrong about
them.
So far from this "chicaeo and Eastern
Illinois rate being a justification for the
Alton shipments, 1t was an addit o al
wrong in itself. The Chicago and East
ern Illinois rate was quite as secret as the
Alton rate and was merely one more in
tempts Of the Standard to evad- or vio-
late with impunity the whole spirit of the
anti-discrimination law.
"waybills Falsifed."
The Standard claims that there was
nothing secret about the rate. But every
waybill for oil shipped over the Alton
under this rate was falsely bi1led"-that
Is, the waybills showed on their face a
rate of 10 cents, with the freight charge
in each case computed on the waybill at
that rate, although the actual freight
charge collected from the Standard was
at the rate of 8 cents In the contem-
poraneous shipments Of the Standard
over the Chicago and Eastern Illinois
was disguised by another scheme, to wit,
by being blind billed"-that is. no rate
at all was entered on the waybill until
the said waybill reached the general of
false billing" required the falsihcatlen
Of accounts to make them balance. The
second scheme Of "blind billing" entirely
concealed the rate. Both schemes had
the intended result Of keeping the local
freight agent and others outside the gen.
erai ONCE in ignorance Of what the actual
rate was. and thereby lessening ne
chance for outsiders to learn of this dis
elimination in favor OF the Stand ard.
Such falsifyins and blind billing Is the
clearest proof that there was something
illegal. Is any other explanation posi-
BILE? In the vast multitude Of waypills ex-
amined by the agents of the bureau OF
corporations in the Offices Of the railroads
eentering at Chicago no such use or OF
found in regard to any oil shipments ex-
&C pt in connection with the six-cent rate
from Chicago to East st. Louis ana with
two other illegal rates on oil made by this
same Chicago and Eastern Illinois rail-
road.
The officers Of both these railroads adj
mitted that this six-cent rate was secret.
One phrased it as "semi-private.'
Not Ignorant Nor Innocent.
Taking a still broader view Of the sit
uation at the time these Whitins-St. Louis
rates were discovered. it is absolutely i'm
possible to impute to the freight trafic
department OF the Standard either tghor-
ance or innocence as to any essential
facts in relation to the railway rates on
oil. There was set forth In the said re-
port on TRANSPORTATION of petroleum rates
especially favoring the Standard. either
absolutely secret or illegal, or II tech
nically legal stfl preferential and unfair.
covering large part of the United states.
There were the secret and illegal rates to
large part Of the south via Grand juno
ton, Tenn: similar secret illegal rates
from Whiting to Evansville. Ind. On
which large shipments to the south were
made: a secret rate on1binatfon from st.
Louis into Louisiana-upon all OF Wnicn
rates indictments are now pending
against the STANDARD: secret rates from
the Standards refinery at Oiean. N: Y,
into Vermont, upon which thu New York
Central and Hudson Ri-er ra'!rorad las
already been convicted and Gle Standard
indicted. and various secret rates else
where.
These rates were all exposed by this bu.
reau in May, 1906. Within three mouths
after that date every such rate criticised
by the bureau as illegal had been can
celed by the railroads making the SAID
rates. This voluntary action OF the rail
roads themselves more than 5ustined INC
conclusion Of the bureau that there mao
been In existence for long time sys'
tenn Of railway determinations In ray or
OF the Standard Oil Company In aim 'st
every section Of the country:
Considerations like these become nlghiy
material when the Standard Oil Company
strict legality to a question Of equity and
good faith, and claims that In this spe-
cific case, though 1t may have been tech
riically guilty, nevertheless 1t was morally
innocent. AS Judge Lands remarked In
imposing the fine, this was by no means
'fts virgin offense."
Rate and Methods Secret.
This Alton rate, therefore, was sub
stantially a, rebate; was the most effective
kind of discrimination, because 1t killed
out all competition: was secret and was
concealed by secret methods; is sought to
be justified only by another like secret
rate which also was covered by secret
methods: was only one Of great system
Of discriminatory rates practically cover
ing the country (which the railroads dared
not maintain in the light of publicity
and In its ingenuity, secrecy and complete
effectiveness constitutes as extreme vio-
lation Of both the letter and spirit Of the
anti-rebate laws as could we'll be i'm.
agined.
The Standard undersold competitors in
the great southwest by means of this six
cent rate to the St. Louis gateway, and
having undersold them and driven them
out of that territory. 1t then raised prices
to a monopoly figure, so that Its market
ing concern there was making over sc
per cent on its capital stock in 1904, and
for a long series Of years had been max
ing profits extortionately high. These
profits were thus based on this secret dis
elimination which had been in existence
over fifteen years: The enjoyment OF this
discriminatory rate was we'll worth many
millions Of dollars to the Standard, and
most emphatically justified the imposition
Of a great hne when that rate was finally
discovered and conviction was secured
thereon.