Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1908-01-09
eTANDARD OIL EvADES,
IS REPLY OF SMITH
Corporations Commissioner,
Answering Trusts Allegations.
Says 1t Juggles Words.

~ III ilttS' "
accepting concessions on shipments
over the Chicago and Alton. In this
the commissioner delivers Il
crushing blow at the arguments of the
oil trust. His statement in full fol-
lows.
On August 3. 1901. at Chicago. the Stand
ard Oil Company of Indiana was fined
sG.24o.W O for the violation of the Elkins
ant!-rebate law. This was the so-called
Alton case" Various statements have
ny the president of that company. James
A. Moffett. others in the public press, and
also a series OF confidential circular trade
letters" all e~ndeavoring to throw doubt
on the legality and equity of that convic-
ton.
The report of the commissioner of cor
poratlons on the transportation of pc
mis- and all other pending rebate indict-
,nents of the Standard Except one) were
nassd; set forth in detail the deliberate.
lohs continued conduct on the part of the
STANDARD in violating the anti-rebate laws.
But these recent statements have made It
necessary to show once more that the
transactions which form the basis of this
fuhNlcthon at Chicago were such as struck
at the very l.fe and spirit of the Elkins
anti-rebatc law and of the policy of con-
srsss IN torbldding unfai-ness as between
Against a Secret Rate.
Ihe question in this case was one of a
published lS-cent rate to East ST. Louis,
as against a secret scent rate. The oil
ton conviction started from Whiting.
Ind. the great refinery of the Standard
near Chicago. and We're delivered at St.
LOUIS. Mo- or at East ST. Louis. H.. just
across tn. .iver from ST. Louis. by ~
Chicago and Alton railroad. They covered
!. 1 Ss 'r0" september l. l*S' to March
The law requires that all interstate rail-
way rates be filed with the Interstate
commission. During this en-
,lre time there was on file with the In
tariff or rate sheet to which the Alton
road was a party. showing that the rate
m iifth-class freight from Whiting and
per hundred pounds. Fifth-class freight
includes petroleum oil. This JOINT tariff
was a large printed document distributed
to many shippers of all sorts of freight.
Dur,ng the time so stated. 1852 cars of
on were carried from Whiting, Ind. to
East st. Louis over the Alton road for the
standard ON company at the rate of 6
cents per hundred pounds. just one-third
oil the said published rate. This same
Secret scent rate had been used by the
S 'n u OF company, and by no one
Ut was not filed with the Interstate Com
merce commission. and was absolutely
secret and unknown to independent oil re-
uners, or to shippers generally.
Mere Question of Words.
The said statement of James A. Moffett
uses the following remarkable language
at must be borne in mind that there
Is no question of rebate or discrimination
In this case"
Whether it was a rebate" or not is a
mere question of words. Apparently the
position of Mr.. Moffett IS that if he had
actually paid the Alton railroad is cents
per hundred pounds and received back II
cents. so as to make .; net rate of 6 cents.
this would have been a rebate" But
and his company only paid 6. and the bal
ance az centS) never physically passed
back and forth between MS COMPANY and
the Alton railroad. although the result
was eXactiy the same. it was not a re
bate This statement is simply an
The other proposition of MIR. Moffett is
that there was mo discrimination in this
case" Apparently his position is that
because no one else is known to haye
paid the published ls-cent rate from Whit
ing to East st. Louis while his company
was paying 6 cents, therefore there was no
discrimination. On the contrary. this very
situation proves that not only WAS there
discrimination but that this discrimina-
ton had worked ont its logical results.
so that no one else could ship at IS cents
in competition with the Standards 6-cent
rate. Precisely this. and other secret dis
ordinations in shipments from Whiting
produced that complete state of monopoly
in the vicinity of Chicago which the
Standard now calmly designates as "ab-
sence of Discrimination"
Severe Discrimination.
This 6-ccnt Alton rate was q rebate" in
sence and in form it was a discrim.na-
ton of the most severe and successful
type.
The STANDARD on Company of Indiana
rafe ON two eroun6s '' : u .he e.cent
scent rate oyer The AItom 'im III that the
~avar tii "a v,th tae Ai,on raiiroad was
"ommission AZ thu ,, nu'r ras commerce
Stnndard tries ~ ren,"av ,et thin Hut the
~" rofnrr;nr M - tnis ,atai delect
.SSoot !, With " on IL Application
,nission Th;s shoo t mr Win me com.
,ho ratcs f ,n chica, "stelS stated that
NV .auvs y Sm,saSo snouid apply also
rom Whtt,hH. endineta.ea the tariffs re-
orirf CON, in~ I tha IT, speCiicaily the
:. Nd no mani,on - ,ho 1I rae but
nniii;nr Grdar" contain;ng I'M aeu spec.ai