The Washington herald., 1907-05-22
PROBEFOR STANDARD
Interstate Commerce Com
mission to Order Inquiry.
WILLFUL VIOLATION CHARGED
Penalty. If Guilty, May BE Peniten-
tiary for the OHlcers-Hearing Z
justment of Pipe Line Rates of the
Dig Oil Trust and Subsidiaries.

There is good reason to believe that a
formal announcement will be made by
the Interstate Commerce Commission
within a few weeks OF its intention to in
Quire into charges that the Standard OIL
Company i'm operating its 40.05 miles Of
pipe line, is fagrantly violating the pro-
visions of the new railroad rate act. The
commission has alIaady given some at
tentiOn 20 the subject and expects to
have before il this week an official copy OF
the report Of the Commissioner Of Corpor-
ations, who alleges the substantial failure
Of the Standard pipe lines to comply with
the common carrier requirements Of the
amended act to regulate commerce.
The rate act declares that pipe lines
are common carriers. and as such they
are required TO file with the Interstate
Commerce Commission schedules show
ing all rates and charges for trausporta-
ton between different points. The COM
missioner of corporations charges that
the Standard pipe lines have assumed an
attitude distinctly hostile to the railroad
rate act He alleges that in some in
stances tkey have failed TO file any such
schedules at all. and that in others they
have done so in such a manner as 10 re-
duce their apparent compliance to an alb
surdity and that they have practically
refused TO ship oil Of independent or COM
peting concerns. All of this. ne charges,
as in defiance of law
Penalty May De Imprisonment.
Section 8 of the law provides that no
common carrier shall engage in business
unless it has filed with the commission
schedules of rates and charges for the
transportation Of property
It is apparent from section 10 of the
act that If the charges against the
Standard pipe lines can be substantlateJ
in the courts. the corporations may be-
heavily fined. and their officers imprisoned
or fined. or both penalties imposed. AZ
the discretion of the trial judge
Section 10 provides that any common
carrier. or whenever such common car
Tler is corporation. any director or Off
Ger thereof. or any receiver. trustee. lessee.
agent or person acting for or employed
10y such corporation, who shall Willfully
do or cause TO be done any act. matter.
or thing in this act prohibited or de-
clared 20 be unlawful shall be deemed
guilty of misdemeanor. and shall. upon
conviction thereof, be subject 20 a fine
ot not 20 exceed $500 for each offense
provided
That if the offense for which any per
son shall be convicted as aforesaid shall
be an unlawful discrimination i'm rates.
fares, or charges for the transportation
OF property, such person shall in addi-
ton 10 the fines hereinbefOre provided
f7r be liable 20 Imprisonment IN the per-
itenuary for a term not exceeding twg
years. or both such fine and imprisOn-
men', in the discretion Of the court"
One Hearing Now i'm Progress.
Before the disclosures of the commits
sioner of corporations as to evasion or
violation of the rate law by Standard
pipe lines, the Interstate Commerce Com
mission gave some consideration 10 the
matter. That the Standards attitude
toward the law viii be thoroughly in
quircd into was vouched for Yesterday bv
d member Of the commission.
The poor old Standard is getting il
from all quarters these days" said this /
authority. without expressing anv
opinion on the subject. it would seem
that the information already collected
tended 20 show that the pipe lines of the /
octopus were being conducted as if they
had not been declared common carriers /
by act Of Congress"
The operation of the Standards nine |
lines were made the subject Of hearing /
yesterday before the commission I'm the I
complaint brought by the National Pc
troleum Association. an organization of /
independent operators. tt seeks TO secure |
an order from the commission whereby /
rates for shipment Of oil through pipe
lines shall be reduced 10 meet the cheaper /
modes Of transportation The association /
claims the railroads have lowered rates /
70 meet those Of waterways Like action. /
u argues, should be required Of the pipe
lines. The association produced witnesses /
TO show that in the past it had suffered F.
from unjust and unreasonable rates. and
from other determinations as a result Of /
the Vaccinations Of the carriers and the 1
Standard Oil Company.