New-York tribune., 1908-01-29
OIL RATES DIFFERED.
VIDE TIRI4NCE SHOWN.
Important Testimony Brought Ont
at STANDARD Investigation.


Washington, Jan. 2s-That secret rates
road and by other railroads in Illinois was de-
veloped to-day in the trial of the of the gov
ernment against the Standard Oil Company.
Mr.. Durand. deputy commissioner of corporations.
continuing his testimony, said that, in conversation
with Mr.. Dodge. one of the vice-presidents of the
Chicago Eastern Illinois. he had asked Mr..
Dodge whether 1t habit of Illinois railroads
to make secret rates wholly within the state OF
Illinois Mr.. Dodge had replied that secret rates
were made at times. not particularly with the in
tention of concealng the rates from shippers, but
to keep them secret from other railroads.
Mr.. Duraod submitted joint tariff of the Chi
cago & Eastern Illinois with the Cleveland Gin
cinnati. Chicago ST Louis Railway. filed with
the Interstate Commerce Commission. showing
rate of 61s cents 100 pounds oil from Dalton.
Ill, TO East ST. Louis. Out of this rate the Chicago
Terminal Company was to absorb not to exceed s.
a switching charge shipments from Whit
ing, Ind. This. it pointed out the equiva
lent of the Scent rate given by the Chicago &
Alton to the Standard Oil Company from Chicago
to East st. Louis. The rate of 61a cents was filed
with the Interstate Commerce Commission, and
therefore public rate The rate of cents
100 pounds oil from Chicago to East St Louis.
alleged to have been given the Standard by the
Chicago Alton. was not filed with the Interstate
Commerce Commission, 1t regarded purely
intrastate rate, which it was not necessary.
a legal obligation. for the railroad to file with
the commission.
In order that a complete understanding of Mr..
Durand's statements may be had. it is essential to
know that the shipments of oil from Whiting. Ind,
to East ct. Louis were made by three routes-the
Chicago & Eastern Illinois. the Chicago Burlington
& Quincy and the Chicago & Alton AS explained
by Mr.. Durand, who conducted the investigation
into the petroleum industry for the Department of
Commerce and Labor. the rate of six cents hun
dred pounds, six and one-quarter or six and
one-half cents, 1t at various times,
fled with the Interstate Commerce Commission
only by the Chicago e. Eastern Illinois The other
roads did not file that rate because they main
tanned that 1t purely intrastate rate with
which the Interstate Commerce Commission had
nothing 10 do. That they gave the scent rate TO
the Standard Oil Company was shown by Mr.. Du-
rands testimony. although their published rates
petroleum shipments between Whiting, Ind, and
East St. Louis were much higher.
In the course of brief cross-examnation of Mr..
Durand respecting the Scent rate given by the
Chicago & Eastern Illinois, Mr.. Rosenthal counsel
for the Standard Oil Company. who assisted
in making the examination by II. E. FELTON,, chief
tariff officer of that company, developed I'M
portant points respecting this rate.
After testfyng that the sl2-cent was flied
with the commission. Mr. Durand asked by
Mr.. Rosenthal:
so that the 6Ia-cent rate prevailed from October
oS 1894 to October II, 1852
Mr. Durand-That is right.
Mr. Rosenthal-Then It is true is It not that
from October D. 1894. TO October II. 1886 the rate
between the points that l have been speaking Of
namely Whiting, Ind, and East ST. Louis ILL.,
cents hundred pounds petroleum. and from
October II, 1885, to January 8, 1906. the rate On
petroleum a hundred pounds between Whiting
Ind, and East St. Louis. ILL.,. S14 cents?
Mr. Durand-That is not strictly correct, no. II
true that during all that period Of time the rate
filed with the Interstate Commerce Commission
was as your question states, namely. during 1894
and 1895 and between the dates specified. S1 cents
and October IL q believe the date Isl. 1896 to
January S. 1906, 6H cents. These the
filed with the commission during that period of
time.
Mr. Rosenthal-By the Chicago & Eastern Il-
nois Railroad?
Mr. Durand-By the Chicago & Eastern Illinois
Railroad
Mr. Rosentfal--Then it is strictly true that from
October H. 1885, to January s, 1906 the regularly
lawfully fled rate on petroleum between Whiting.
Ind. and East ST Louis, Ill, 81 cents hun
dred pounds?
Mr. Durand-The regularly filed rate was that:
yes sir.
This testimony of Mr.. Durand who conducted the
petroleum investigation himself, is regarded i'm
potant in view of the fact that in the trial of the
Standard Oil case at Chicago. In which fine of
SO 900 levied against the Standard Oil Com
psny of Indiana, it was held that the lawful rate
between Whiting, Ind, and East st. Louis, H.,
IS cents hundred pounds.
Mr. Durand testified that while the rate for years
prior to January. 1905. from Whiting Ind. East
ST Louis. H., had been So cents, via the Chicago
& Eastern Illinois. the rate effective after that
time was 10 cents hundred pounds on oil.
Was this l0-cent rate put into effect after the
Department of Commerce and Labor began in
vestisation into these rates?' inquired Mr.. kel-
logg.
1T was" replied the witness
In response to inquiry by Mr. Rosenthai, Mr.
purand said that he regarded the statement on
the Chicago Eastern Illinois joint tariff with
the Cleveland. Cincinnati, Chicago & ST. Louis
Railway, providing for absorption of mot to
exceed 50 car. c. & c. T. switching on ship
ments from Whiting, Ind" as obscure"
1t may be explained that the statement respect
ing the absorption of the switching charge was a
part of the tariff. which typewriter and
about four lines in extent in the middle OF one
page.
Mr. Durand explained that he and his assist
ants had examined at least two hundred waybilIs
OF the Chicago e. Eastern Illinois of shipments of
oil from Whiting Ind. to East ST. Louis, and that
they had not shown definite charge or rate Oil
their face In the words of Mr. Kellogg, they were
blind billings"
ard at this point became involved In contro-
yersy about the oss-examination of Mr.. Durand
which Mr. Rosenthai desired make after he had
had opportunity to examine and check up the sta
tisticaI evidence he had submitted. 1t finally was
decided that Mr.. Durand might be recalled sub
seauently for cross-examination.
REMSEN MAY HEAD PURE FOOD BOARD