The Washington herald., 1907-01-29

discovered Only one such Instance was
shown IN this investigation. which was
found in the provision OF expensive and
extensive storage facilities al Chicago by
the Lake Shore and Michigan southern
Railway for the Standard. for which the
Standard paid nothing The chief traffic
officer OF that road gave Instructions that
these charges should not be collected. and
they had not been COLLECTED until shortly
before the hearing. While the Standard
has not received rebates. il has neverthe-
less enjoyed secret rates, possessing all
Of the elements of illegal rates, and the
advantages so obtained over independent
shippers have been of very great value
10 that company. These secret rates are
indicated in the very full report made by
the Commissioner Of Corporations
Determinations In Freight Rates.
Formerly through rates were In effec.
on refined oil from Pennsylvania and Ohio
points to territory west OF Chicago. but
in 1880 the great refneries of the Standard
were erected at Whiting, Ind. near Chi
cagO. and thereupon lines west OF Chicago
declined TO join in through rates with
lines from the East. and independent re-
finers were compelled 10 pay the full 10
Gals from the point Of shipment 20 Chi
cago, plus the full local beyond. The in
creased the through rates 10 its compet-
tors and aggragavated the advantage
which the Standard possessed by reason
of its ability to pump its oil 10 Whiting
AZ a small cost and refine Il al that point
Almost every commodity takes a blanket
rate TO the Pacific Coast from all points
east of the Mississippi and north of the
Ohio, but 20 this rule petroleum is "A no
table exception The rate, for instance,
from Cleveland to san Francisco is the
full local 10 Chicago, added 10 the rate
from Chicago TO the Coast
Deliberately Ruins Competitors.
The ruin Of its competitors. says the
report, has been "A distinct part Of the
policy of the Standard on Company in
the past, Systematically and persistently
pursued
Some of the methods Of competition
shown 10 have been INDUCED in by the
Standard are as follows:
The Standard mas repeatedly. after be-
coming the owner Of competing com
pany, continued to operate il under the
old name. carrying the idea To the public
that the company was still independent
and competing with the Standard. II has
used such purchased or Independently or
by such companies reducing prices. The
operation of such fake independent CON
Germs has been one Of its most effective
means Of destroying competition The
Standard has habtually reduced the price
against its competitor I'm a particular
locality. while maintaining its prices at
other places. When competition was de-
stroyed Il restored or advanced former
prices.
Remedies Proposed.
More than anything else the pipe line
has contributed TO the Standard OH mo-
nopoly the report points OUT. and its su-
pTeme act must continue until its rivals
enjoy the same transportation facilities
The amended act 10 regulate commerce
makes the existing pipe lines common car
riers subject 10 that act, and the power 70
prescribe just and reasonable rates. regu-
latlon. and practices. after complaint and
hearing is conferred upon the commission
But the pipe line tariffs filed with the
commission are alleged TO be of no actual
advantage 10 the independent operators.
The commission can only act upon these
schedules after complaint has been made
challenging specific rates regulations. or
practices. Some complaints are now pend
ing.