The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1908-01-01
REPLIES TO THE
STANDARDS PROTEST.
The Big Fine Is just Declares the Gov.
crnments Representative and
There Was Discrimination nv Com.
pany.


washington. Dec. 29.-The burenu
or corporations has issued a be)ateJ
reply to James A. Moffatt president
OF the Standard Oil company of In
diana, who declared at the time OF the
fine Of s29,24O.0O0 was impose6
against his company by Judge Landis
that 1t was not justified as there was
no discrimination involved in the late
paid on the shipment OF the oil from
Chicago to east ST.. LOUIS and that +bo
action of the court was based on a
mere technical violation Of law.
Commissioner Herbert Knox Smith
presents a statement OF facts in or.
position to this view, not only to show
that a discrimination was practiced
but that 1t was practiceG with the
knowledge Of the Standard Oil COM
pany and Of the Chicago & Alton rail
road. Referring to Mr.. Mofratt,s
statement the commissioner saws.
Apparently his position is that, be-
cause no one else is known to have
paid the published 1S-cent rate from
Whiting to east st. Louis while his
company was paying cents. there
fore there was no discrimination. On.
the contrary, this very Situation
proves that not only was there dis
but chat this Jiscrimira.
ton hal worked out its logical end.
so that no one could ship at is cents
In conlpentition with the Standards
G-cent rate. Precisely this. and other
secret determinations in shipments
from Whiting. produced that .om-
plete state Of monopoly in tine vic;r-
ity of Chicago which the Standard
now calmly desigpates as absence of
This rate was a rebate in essence
II not In form. and both In osssence
and in form 1t was a discrimination of
the most severe and successful
forrn."
The per cent. rate given in the un-
dled special billing nrder." he says,
was no notice to any one Of the I'm.
pthlished Scent rate. nor" he ADDS,
was It intended to be-"
In conclusion the commissioner
says:
This Alton rate, therefore, was
a rebate; was the most
effective kind Of discrimination be-
cause 1t killed out all competition;
was secret and was concealed by Sc
'ret methods; is sought to be justified
'nly by another like secret rate which
also was covered by secret methods;
was only one of a great system of
rates practically COW
srint: the country, which the rail-
roads dare not maintain in the light
'f publicity, and in its ingenuity. Sc.
,recy ard complete effectiveness con.
'titutes as extreme q violation oc both
he letter and spirit Of the anti-re-
'ate laws as could we'll bx magined.
'"rhe Standard undersoid competi-
ors in the great South west by means
II this cent rate to the st. Louis
gateway and having undersold them
md driven them out OF that territory
t then raised prices to monopoly
igure. 40 that its marketing; concern
here was making over 800 per cent |
On Its capital stock in le0t. and for u
ons series OF years its profits had
been extortionately high.
These profits were this Based on
his secret discrimination which had
been IN existence Is years. The ell
|oyment OF this discriminatory rate
was worth many millions Of dollars to
he Standard. and most emphatically
justified the imposition Of q great fine
when that rate was finally discovered
Ind conviction was secured thereon"