The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-07-03

Technical Description OF
Frei0ht COHtr0Uersy
By =. g. HOLMES.
hartman OF The Traffic club.

Chair man OF INV - univ |ffNf
Tb, failure OF the Central Frcisht
association lines TO provide 10 per
cent reduction upon the proportion
al rates from Mississippi ii'vl Ci1'e
ings east, has ocCaslOncd cohaiu'I-
abis amount Of bitter feeling ana mas
been a decided daoppolntment 10
the Mid-Cuutincnt reilncrs VINO nave
suffered discrimination IN th'lr
ratoa to the east since the August 20,
1920.
Leaving out any merits of the
,lentns of the rcfiuCra located on inc
river OF east. we have to consider tho
nctual facts ~ to what transpirod IN
the rate a'ructure inastar az II
worked an injustice upon tho Md
Continent field
For a great many years prior to
August 20, 1890, a rate relationship
had been established on which o
great business had been built up.
This relationship was far To the
carriers, In that it provided adequate
rates for tho service performed: II
was fair TO the Mid-Contlncut rcflncr
in that it allowed him 10 compete
with the reflnerics located In tho
east. ana il vas fair to the eastern
reflner In that the Mid-Continent did
not have any undue advantage, IN
fact was somewhat at n disadvan-
tago. when all trade factors were
p considered.
The greatest production OF oil is
west OF tho Mississippi river, so
that the eastern refinery had TO 20
into tho Continent, the CUR
Coast or Mexico for his supply OF
crude oil TO secure this crude oil
eithor by pipeline or by steamer
cost the same money. The loss.
evaporatcd in handling, cost an ad-
dltional amount, 50 that when he
sent his refined product TO the GUS
toner by rail. short haul, the COM
hlz.d costs were so adjusted that
thtI refiner In the Mid-Contincnt
field could compete with the cas-
tern refineI
The adydnce in 1918 OF ~ cents
did not disturb the relationship OF
costs of the two different refining
districts. In laying down the com
modify to tho customer. The ad-
vance was the same amount. "a
cents. regardless OF tho distance OF
the haul. when the per centage In
crease came about. August &c, 1920.
these differences IN cost OF supply
Ing the consumer were very mater
tally disturbed, and as an illustra-
ton. we will take the rate from
Tulsa. 10 Toledo, aA against the rate
aANlA - AsNuAH ~ JNltfAbs
On refined oil. prior to the ~
eents increase, the difference In
freight cost was s.0132 per gallon
81 favor OF ST. Louis. After the Z y
cents increase, this difference re-
nained the same, August 20. 1890
the difference became s.0l7s per
gallon. or an sncrease OF s00046
nearly u cent per gallon and Jan
uary I. 1929 when tho Contra
fsrN.s ~
their local rates 3Is cents this dif
ference was further increased e
s.020i per gallon, or a total In
creased disturbance OF the trade re
lationship OF s0OG0 per gallon.
These same figures can be takei
20 practically every point east o
the Misslsslppl river, whore the rate
were based on n Mississippi river o
Chicago combination. Consequently
today II costs the Mid-Conunent re
finer from Pa TO $40 OF cont
10 the consumer east OF tho Missis
eippi river, than It did prior I
August 90, 1920.
Prior to this date. these trade an
ferentials we're so balanced as TO &C
count for extra cost of securing RAJ
material AT Chicago or ST. Louis.
y. Now the carriers, in reducing m
local rates from the Mississippi riv,
east hound, January ] this yea
made these local rates that apple
upon products originating I'm IN
Mid-Continent field and as the PR
portional and local rates were Il
same they discontinued descrlbi.
any rates east from st. Louis
.t PROPORTIONAL rates.
This opinion OF the commiaei,
that all rates should have n 10 %
cent reduction that had not he,
reduced since August 26 1920 W
Z ignored by tho roads east OF 5
Louis, they claiming that by redu
ing their local rates, their rates h,
already been reduced q per cent
Il more whore the rate was loss N,
81 cents hundredwelCht. and pro
ably on account or representation
commercial interests. have stuck
mat Interpretation In face Of advi
from the commission that they I
- terpreted their opinion TO mean IA
the proportional rates should
given the 10 per cent reduction. r
following wire In regard 10 prots
was received from Mr., Hardie.
rector or traffic Of the intersta
aom mercc commission:
Commission today advised Cha
man Morris that II construed opI
lon In general rate cases as prescri
Ing 10 per cent reduction on m
nortonai rates on petroleum frr
MISSISSIPPI river CROSSINGS 10 poh
3. w oflr'al Classification territory a
/ pHcHhIc on traffic originating !
'"nd wnen such rates have NOT bo
'educed since August 90. 1920"
IN the face of this. however. Z
-"'''''' nave refused TO abide