The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1907-09-04
A GROSS INJUSTICE.

Statement of james A. Moffett, Presi- ,
dent, Standard Oil Co., of IndianaJ.
The Court having pronounced its p,
judgment IN the case of the United !
States VS.. Standard Oil Company, of
Indiana, there can now be no impro-
priety in stating our position to the
American people.
The facts in this case are simple
and easily understood The Standard
Oil Company, of Indiana, was convict
ed of receiving what the Government
claimed was a concession from the
Chicago & Alton in the shipment OF
oil from it's refinery at Whiting, Indi-
ana to East st. Louis, Illinois. 1t must
be borne in mind that there is no ques-
ton of rebate or discrimination in
this case. The contention of the gov
ernment was that the lawful rate was
Is cents per one hundred pounds be-
tween these two points. The defend
ant claims: First, that the lawful rate
was cents; and, secondly, if cents
was not the lawful rate it was the rate
issued to the Standard by the Alton as
the lawful rate, and the Standard was
justified in believing from its own in
vestigation and from the information
received from the Railroad Company
that cents was the lawful rate.
The 18-cent rate was a class and
not commodity rate, and the chair
man of the Chicago & st. Louis Traffic
Association, the association issuing
the 1S-cent class rate, under oath testi-
fed that it was never applied and was
never intended to apply to oil.
The period Of time covered by the
indictment in this case was from Sep
, TENDER list, 1908, to March list, 1905.
, The rate on oil between Chicago and
East ST. Louis over the Alton for four
= teen years, from 1891 to 1905, was al
{ ways 6 cents per one hundred pounds.
This was an open published rate known
< in all railroad circles in Chicago. Both
Chicago and East st. Louis being III
J Illinois. the railroad company was an
der no legal obligation to file this rate
n with the Interstate Commerce Commits
i sion at washington, but Whiting, be-
: ing in Indiana, shipments from WHIT
ing to East st. Louis were technically
at least, interstate and hence the AL
ton filed with the Interstate Commerce
Commission what is'Known as an "ap-
plication sheet" applying to Whiting
the Chicago rate, and deemed the fiji.
ing of the application sheet all that
was necessary under the law.
For over thirty years, by custom
| all of the little industrial towns
grouped about Chicago and which ar,
in reality an essential part of Chicago
and go to make up it's industrial
strength, have been given the SAM
freight rates as Chicago. The reason
for this is, of course, apparent, and i
is because of this uniformity of freigh
rates that Chicago as the center of thi
group is today a city of over two mil
lions of inhabitants. If Whiting, Pull
man, Hegewisch and South Chicago
did not get the same freight rates a
Chicago, manufacturing establishment
in these towns would be compelled t.
close their doors. Because of this con
dition and situation railroads create
: what is known as the Chicago Switch
: ing District, which includes Within
and all of these other little manufaC
turing towns in and around Chicago
These towns are further unified by
belt line railroad which encircles Chi
mn cago and connects this entire indus
100 trial system with the trunk lines rad
100 ating from Chicago.
Thousands of tons of freight hav
been shipped from these points durin
the past fifteen years under the sam
circumstances as the Standard shiI
: ments, and if the Standard is guilty
% this case, so is practically every othe
n shipper in this great manufacturer
A. territory. Is there a purpose in selec
ing the. Standard as the victim?
De The Chicago G. Eastern Illinois Raj
It's road also runs between Whiting an
a East st. Louis. The Standard Oil Con
pany shipped about one-third of all I'll
oil that went from Whiting to Ea
= other two-thirds going over the A
ton and the Burlington. On the tri
of the case the defendant offered
sW show by witnesses who We're on II
Iu- stand that not only during the peric
of time covered by the indictment, b1
eu continuously from 1895, the Easter
Sl- Illinois had a lawful published al
filed rate between Whiting and Ea
St. Louis on oil of cents per one hui
bred pounds and that the Standard Q
:. Company shipped at such rate ov
" the Eastern Illinois more than tv
" thousand cars of oil each year duriT
said period. To this offer the Cover
ment through it's attorneys strenuou
ly objected and the Court sustain'
lu. the objection. The defendant conten
cd apd cti1I dOao oonfand that IN