The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1907-08-15

south Atlantic division, the. range is from
Is cents. as RICHMOND, Va. TO l2;5 cents at
from ga cents II Cincinnati, O., to IOl
cents In st, Joseph. Mo: south central
division. from Z cents in New Orleans, La.
division. 81 cents at Los Angeles. Cal, to
1866 cents at Butter, Mont, ali with freight
deducted. Very little OF the difference in
price among cities In any one Of the d.
fin.ng.
In fact. ever as between cities or states
most WIDELY separated, only a small frac-
ton OF the difference In price, after de-
ductng freight, can be explained by diff
timing. The rest Is due to a consistent
and wholly unjustifiable policy Of price
d-scrimination against noncompetitive To-
~calittes.
Wide Discrepancies.
Even in towns in the same state or same
vicinity these wide discrepancies occur.
In the east Texas and Louisiana division
gust. 1903, the profit between delivered
cost and selling price on Brilliant oil IN
tank wagon and bulk ranged from 1872 to
from 0.69 cent to SOS cents. In the south
Texas division of that company, on the
same kind Of oil, delivered in iron barrels,
cents and twenty-one towns had margins
above 6 cents In April, 1904. and similarly
striking d,sparities occur within other In
Another interesting comparison is that
MOVING the lowest and highest prices
WITHIN given states. In Arkansas the diff
prices in December. 1904. freight deducted.
was 76 cents; Co:orado, 81; Idaho. SO:
louisiana, SIS; Missouri, "A: Montana, 40:
cents. y
The evidence is absolutely conclusive
enat II is the policy of the Standard OIL
company to a k full advantage Of all
nen-competitive conditions to impose the
highest prices possible and to extend such
price cutting calculated to drive out rivals.
The enormous profits secured over most Of
the country enable the Standard to carry
calities where price cutting is demanded
by this policy.
These DETERMINATIONS in prices were
system of discrimination in railroad rates,
mainly secret, which was long enjoyed by
the Standard Oh ompan until recently
exposed by this bureau in its report on the
transportation Of petroleum, published in
May, 1906. The elaborate system of rail-
road discrimination, extending, as it did,
lowed the Standard to place its oil in any
given section where it happened to en-
counter competition at a cost much below
the cost to its competitors. 1t was shown
IN the bureaus report on this subject that
In several Instances the unfair advantage
enjoyed by the Standard In freight rates
"oS lioAl Ill0Sll lliOIC LID d ltV1IlR profit
on Its oil business. The Standard was thus
able virtually to suppress competition in
such areas, and this at a minimum OF loss,
or perhaps even without actual loss. to
itself. In this way it was able to trans
form competitive into noncompetitive ter
ritory. Having done this, the company
a reasonable level, but far above it. Com
petitoTs. while theoretically able, in view
OF these high prices. to re-enter such mar
Ing SO, owing to the fact that the Stand
ard, by reason of Its advantage in rail
rates, could, and would, at any time when
where such competitors would again be
forced to conduct their business at a loss.
1t IS thus apparent that discrimination in
railroad rates is Intimately identified with
discrimination In prices.
Railroad Lubricants.
A special and important branch of the
lubricants. Certain very remarkable facts
characterize this business. The trade with
lubrieating oils for rolling stock amounts
to about 81. 900 per year. The Standard
on company. through the Galena-signal
most complete monopoly therein, certainly
over s5 per cent. of this business.
The system upon which the lubricating
oils are sold to the railroads is somewhat
unusual. Each contract contains certain
invoice prices per gallon of oil, which
are to be paid unless reduced by other
pIONlStOIlS u -llle contract. InGSe IN
voice prices are excessively high, and are
the same In all contracts. But there is
also In each contract a second factor, the
the oil company agrees thai the cost OF
fabrication to a particular road shall not
exeeed a certain amount per thousand
and freight cars. These guarantees, un-
like the invoice prices. diffcr widely for
the different roads. By means OF such
mileage guarantees, the net prices Of lu-
Dr1canfS 70 a given road NAV he nla rcd at
the excessive invoice prices. or at any de-
sired amount below them.
In a Glass Alone.
The oils used and invoice prices per gal
Ion are as follows: Valve oil, 48 cents; en-
CINE oil, % cents; coach oil, 33 cents; car
ninety-four railroad companies, which OPP
crate about 91.5 per cent. Of the locomotive
contract with the Galena-Signal OIL COM
pany. BY reason Of the very low price it
has paid over a period of ten years, as
compared with other roads, the Pennsyl-
Hania system stands In n class by Itself.
Through the mileage guarantees, widely
different prices nave been made to rail-
shown by the following statement of av-
GRACE prices paid for valve oil: The Penn
s~ylvania system paid 2S.5 cents per gallon
eight roads averaged 2.7 cents, twelve
enteen roads 45.9 cents, and forty-one roads
IS. cents. The prices paid for the other
OILS were III eSaclly the same proportion
as those cited for valve oil. The import
ance of the ffty-eight roads in the two
classes last mentioned is shown by the
fact that in one year they paid S 1900, coo at
prices which averaged double those paid
by the pennsylvania.
The Gaicna-Signal OIL company has con-
tinued under successive agreements, which
it has had ample opportunity to terminate,
to sell these lubricating oils to the Penn
sylyania during the past years at prices
which were about one-half the invoice
prices. and some few other roads have had
equally favorable contracts. Moreover,
the calculations made by the Pennsylvania
as to the cost at which 1t could compound
It's own lubricants from oils bought In the
open markets, as well as statements made
By independent oil companies, show that
the prices paid by the Pennsylvania can
be used as a stardard Of reasonable price
by which to judge the excessive prices
paid by nearly all other railroads In the
country.
Absolutely no satisfactory explanation
has been given for the excessive prices
paid by nearly all railroads. They must
be attributed solely to the fact that the
Standard. which controls the Galena, Is
powerful CROUCH. either py reason of its
enormous SHIPMENTS of petroleum products
or by Its influence In financial circles. TO
induce most of the railroads Of the coun-