The news-democrat. (Providence, R.I.) 1906-1909, 1907-12-30

Furthermore about four years later.
In May. 1899. the Chicago and Eastern
Illinois Railroad still further concealed
the existence OF this already obscure Dol
ton rate by issuing and filing the same
conspicuous lS-cent tariff, already mem
toned. to which the Alton was also n
party.
REFUTE OWN JUSTIFICATION.
These facts OF themselves refute, COM
pletely the attempted justification of the
Alton rate by means of the Chicago and
Eastern Illinois Ga A-cent rate, and show
that one was as secret as the other.
But still more significant was the con-
duct OF the railroads and the Standard In
the manner of handling the 6-cent rate
over both railroads. The Standard claims
that there was nothing secret about the
rate. But every way bill for oil shipped
over the Alton under this rate was false
ly biled-that is. the waybills showed on
their face a rate OF Is cents. with the
freight charge in each case computed on
the waybill at that rate, although the ac-
tual freight charge collected from the
Standard was at the rate of cents.
FALSIFYING. BLIND BILLING.
Such falsifying and blind billing Is the
clearest proof that there was something
illegal Is any other explanation possi-
BILE?
MAKES lNGENlOUS CLAIM.
"The Standard has made also the in
genious claim that It's carefully organized
freight rate department. certainly one of
the best In the country supposed this rate
was legal and that IL bad no knowledge
that the Alton kept the rate secret. The
Standard knew that the method OF col
lectng the freight charges. both by the
Alton and the Chicago and Eastern Illi-
nois. was altogether exceptional; that IL
was employed only in connection with
- az rat nd
other similar rates over the Chicago and
Eastern Illinois
ION the very face of several OF the
semi monthly bills rendered by the Alton
to the Standard at the Illegal 6-cent rate.
there appeared written evidence that the
oil was being way-billed at cents. so
that the Standard had notice thereby OF
the false billing, even III IL had not beer
perfectly cognizant OF II otherwise. More
over. the only possible motive for that
secrecy which the railroads admit that
they maintained regarding this rate was
to conceal IL from competitors of the
standard and II Is inconceivable that tho
Standard should not have known of the
practices which Injured solely to its adj
vantage.
Taking a stlIl broader view OF the sit
uation at the time these Whittng-St.
Louis rates were discovered, IL is abso-
lutely impossible to impute TO the freight
traffic department OF the Standard. either
ignorance or Innocence as to any essen
tial facts In relation To the railway rates
on oil. There was set forth i'm the said
report on transportation OF petroleum
rates especially favoring the Standard,
either absolutely secret and illegal, or "
technically legal still preferential and un-
fair covering large part OF the United
States. There were the secret and ille-
gal rates to a. large part OF the South via
Grand Junction Tenn; similar secret IL
legal rates from Whiting to Evansville,
Ind, on which large shipments TO the
South were made; secret rate combina-
"a Int sicfa faa.- M
all OF which rates indictments are now
pending against the Standard: secret
rates from the Standards refinery at
Olcan. N. Y. into Vermont, upon which
the New York Central and Hudson River
railroad has already been convicted ana
tho Standard indicted. and various secret
rates elsewhere.
These rates were all exposed by this
bureau i'm May. 1906 Within three months
after that date every such rate criticised
by the bureau as illegal had been can
celled by the railroads making the said
rates This voluntary action OF tho rail-
roads themselves more than justified the
conclusion OF the bureau that there had
been I'm existence for a long time sys-
TEN OF railway determinations In favor
OF the standard oil company in almost
every section OF the country.
Considerations like these become high
ly material when tho Standard OH COM
pany appeals. as IL has. from question
OF strict legality to a question OF equity
and good faith. and claims that In this
specific case. though IL may have been
technically guilty, nevertheless II was
morally innocent As Judge Lands re-
marked In imposing fine. this was by no
means ITS virgin offence
This Alton rate. therefore. was sub
stantially rebate; was the most effect
i've kind Of discrimination, because Il kill
ed out all competitions 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 or a
great system of discriminatory rates prac-
ticallv covering the country (Which the
railroads dared not maintain I'm the light
OF publicity. and I'm It's ingenuity. secrecy
and complete effectiveness constitutes as
extreme n violation of both the letter and
spirit OF the anti-rcbate laws as could
well be imagined"