The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1908-01-02
STANDARD OIL EvADES,
IS REPLY OF SMITH
Corporations Commissioners,
Answering Trusts Allegations.
Says 1t JuggIes Words.

Washington, Jan. 1.-Commissioner
Of Corporations Herbert Knox Smith
has issued q statement in answer TO
the allegations of Standard Oil con-
corning its conviction in Chicago for
accepting concessions on shipments
over the Chicago and Alton. In this
document the commissions delivers a
crushing blow at the arguments of the
oil trust. His statement in full fol-
lows:
On August 8, 1907. at Chicago. the Stand
arc arc . on !, Company Of Indiana was fined
sIs;3ao o. 20 Il for the violation Of the Elkins
Alton case" Various statements have
since appeared, one in particular signed
A. Moffett, others in the public press. and
also a series of confidential circular trade
letters, all endeavoring to throw doubt
ton.
The report of the commissioner of cor
poratlons on the transportation of pc
Ioieurn. published in May, 1906, on which
this and all other pending rebate indict-
ments of the Standard Except one) were
passed, set forth in detail the deliberate,
long continued conduct on the part of the
StdAoafd IN violating the anti-rebate laws.
SUI these recent statements have made It
necessary to show once more that the
transactions which form the basis of this
conviction at Chicago We're such as struck
at the very Lfe and spirit of the 1lkins
antl-rebate law and of the policy of con-
gress in forhidding unfai:ness as between
shippers.
Against a Secret Rate.
The question in this case was one of n
published 1S-cent rate to East ST. Louis.
as. against Il secret G-cent rate. The oil
involved in this so-called AL
ton conviction started from Whiting,
mo. the great refinery of the Standard
near Chicago, and We're delivered at st.
Louis. Mo, or at East st. Louis. Ill.,. just
across the river from ST. Louis. by tlH
chicago and Alton railroad. They covered
a perlod from September ], 1903. to March
ri The law raYt,jroc 4i,o = ,1l ;,Yor-+o+o -: ,
way rates ne filed with the Interstate
ComlneTce commission. During this en-
IRE time there was on file with the In
tefstase Commerce commission a joint
tariff, or rate sheet to. which the Alton
road af vas a party: showing that the rate
Chicago to Fast ST. Louis was Is cents
per, hundred pounds. Fifth-class freight
Includes petroleum OIL. This JOINT tariff
TO many shipners of all sorts of freight.
i9ur:ls the lime so stated. 1.462 cars of
9 f41s, were 81 carried from Whiting. Ind. to
STANDARD Oil company at the rate Of 6
cents per hundred pounds. just one-third
OF the said published rate. This same
Standard OF company. and BY no one
81 Gtss; tor ,nans years prior to this period.
merce commission, and was absolutely
secret and unknown to independent oil re-
hhers, or 10 shippers generally.
Mere Question CT Words.
The said statement of James a. Mohett
uses the following remarkable language:
1t must 10 borne in mind that tnere
~ Nc. question OF rebate or Determination
i'll this case"
Whether It was a relate, or rot is >
mefe questinn OF worls, Apparently the
actually pad the Alton railroad is cents
per hundred pounds and received hack 10
tents: so as 10 make 4 net iute of 6 cents.
TINS would have been a rebate" But.
that, because tile lawful rata was is cents
ana ms conipi.y only paid 6, and the ball
hice tls rents' never physically PASSED
PACK ana forth between his company and
the Alton railroad, although tie result
was exactly the same. il was rot a .re-
bate; Ihis statement is simply an
evasion.
The othcr proposition OF Mr.. Mofett is
dnae mere Wa no DISCRIMINATION in this
case. Apparently his position is Thar
because no enc else is known to have
paid the published lS-ccnt rate from Whit
was PAYING q cents, therefore there was no
discrlm.nation. On the contrary. This very
situation proves that not only was there
ton had worked out its logical results.
so that no one else could ship at is cont:
in competition with the Standards G-cent
examinations in shipments from Wbitinp
produced thal complete state of monopoly
IN the vicinity Of Chicago which the
standard now calmly designates as ..ah-
sence of Discrimination"
Severe Determination.
Ihis Scent Alton rae was a rebate, in
essence, ~ got IN form. and both in es-
sence and in form it was a discrim.na-
ton of the most severe and successful
type.
has tried to excuse its use Of the G .,lt
rate on two grounds. 1t admits that tho
6-cent rate over the Alton railroad was
commission. rs the law required, BUT the
Standard tries to remedy this fatal defect
Sheets sg refer wh|sb to gas a oe certain rita Application
mission. This sheet merely stated that
the rates from Chicago should apply also
from Whiting, enumerated the tariffs re-.
ferred to by it, and named specifcalIy the
tarlff contiirius the ascent oil rate: hut
It made no mention of the unified SPECIAL
Billing Order" containing the G-cent rate
nor did il give any information as to any
6-cent rate on oil, OF course, this sort Of
thing was absolutely no notice to any
one of the unpublished G-cent rate nor
was it intended 10 be.
But the chsef ground upon which the
Chicago and eastern Illinois rate" The
claim is that while the shipments of oil
We're going on at 6 cents over the Alton
over the Chicago and Eastern Illinois rail
road a rate or 81 cents from Whiting 70
East ST. Louis. The Standard claims that
this 6A-cent rate was a legal rate, and
that therefore. iuasmuch as the Standard
could have shipped all its oil at this al
1egeh leg i,,,n rats over the Ghtcago and
ceptlng a like rate over the Alton. and
l h1sa, th 1er eyer Ell + , ln,i1v sh idna1 over the
AIlo!b WCtS tSIiilitiily llieSdl there was
no morai WrcpS about them.
An Additional Wrong.
So far from tt:s Chicago ard eastern
Illinois rate" being a justification for the
Alton shipments, it was an additional
wrong in itself. The Chicago and eastern
Illinois rate was quite as secret as the
Alton rate and was merely one more in
stance of the Ingenious and deliberate at
tempts OF the Standard to evadc, or vio-
late with iu1puuity, the whole spirit of the
law.
The facts ~ TO this "justifying', rate
are as follows In October, 1895. the Chi
cago ard Eastern illinois railroad filed
with the Interstate Commerce commission
a single mitneograph sheet stating that
the rate on oil from Dolton. H.. 20 East
st. Louis was fia cents per hundred
pounds. There Is no evidence that this
sheet wgs ever distributed 10 any shipper
except the standard OIL company.
This rate cad from Dolton," not from
STROPS RAZOR FOR