Show MOFFETTS MOFFETT'S STORY TORN TO TATTERS i Commissioner Knox Makes Hot Report on Landis Fine TRICKS OF STANDARD OIL Dill Defense in F Famous Case Based on Subterfuge and andE E Evasion Washington Dec 29 Commissioner of or Corporations Herbert rt Knox Smith made mado public nt hl hiM reply to the pamphlet of President Jamos A. A felt of oC the Standard Oil company of oC In- In diana The Tho answer was drawn dran up at atthe th the request of Secretary Strain Stratis and riddles the statements of oC Sir Mi h Moffett the legality and equity of oC the 29 fine Imposed by Judge I K M. M Landis 5 The Tho report follows Washington ton L u. u Do cc o. o On On Au August 3 3 1907 at Chicago tho the Stan Standard ald Oil compan company com corn pan ian of oC Indiana was lined fined for Cor the violation of the tho ElkIns anti anti- law This was tho called so-called Jut Alton J n case o. Various statements have havo since appeared ono one in particular signed il ned by the president of the company Janis A. A Moffett Marrett others In the public s prot-s and also ahw ft lL series of confidential circular trade letters' letters all aU endeavoring to throw doubt on the legality and anti equity of or that conviction The report of tho commissioner of corporations on the poi tation of peti petroleum oleum published In May ln 1906 on r which this anti and all other pend pending ng rebato Indictments of ot tho tim Standard except one were based sot set forth In detail the deliberate long continued conduct on oa the thc part of tho Standard in violating the rebate anti-rebate laws nut lint these recent statements have made It necessary to show once more the tho transactions which form th the basis of this conviction at Chicago o wore were such as struck at the tho vcr very lIt life and anti spirit of tho the Elkins Elkin anti anti- re rebate atc law la and of the policy of congress congress con con- gress In forbidding unfairness as be between between between be- be tween shippers I QueNtion Hf The Tho question In this caso was wa one oneat at or a published cont cent rate to last liast St. St Louis as against ag a secret six-cent six rate i r The Tho oil shipments involved ed In this so- so oI o- o called Alton e conviction started from I Ind the great r ry of or the Standard near Chicago and anel were d do- do livered at al St S1 Louis or at East St. St Louis by br tho the Chicago o and Alton rail rail- road rondo They covered a period from September 1 1903 to March 1 1 1905 Tho law requires that all uti Interstate railway rates be flied filed with tho the Interstate Inter Inter- state commerce commission During this entire time tinie there was on file Hie with tho the Interstate commerce commission lon a joint tariff or rate to which the tho Alton road was a part party showing that tho the rate on fifth firth class freight from Whiting and anti Chlea Chicago o to Hast East St St. Louis Loul was 18 IS cents per hundred pounds Fifth class freight includes petroleum oil This joint tariff was a lar large e printed document docu docu- mont ment distributed to many shippers of or all sorts of freight t. t During the time so stated 1162 cars cat of oil were carried trout irom Whiting Ind IrnI to I East Kast St. St Louis o over or r the Alton road for the Standard Oil company compan at the thc rate of 6 cents per hundred pounds just third ono of or the said published rate This same samo secret six cent rato rate had been used h by the Standard anti and by y no ono one else for many years ears prior tn to It was not filed Hied with tho- tho In r tio comm COlT m V was 5 n secret and unknown un us- 1 known 1 to toV to independent V oil r refiners ners orto orto or to shippers generally S V V V Moffett's Moffetts The sql sid statement of or James A. A Moffett Moffett fett uses the following 1 language lang It must be borne in mind that there is no question of rebate or 01 discrimination in this case Whether It was a n rebate or 01 or not notIs notis notis Is a more mere question of words Apparently Apparent Apparent- I ly the position of oC Mr 11 Is that If Jf he had actually paid the I railroad railroad railroad rail rail- road the cents 18 per er hundred pounds and received back 12 cents so 80 as 18 to tomake tomake make a net rate of 6 cents It would have been a rebato but that because the lawful rate was 18 IS cents and his company only paid 6 cents and the balance bal bat ance 0 12 cents never ph physically passed back and forth between his itis and the Alton Altos railroad although tho the result was exactly the same mme It was not nota a rebate This statement Is 1 an evasion The Th other othel statement of Mr rr Moffett is that there thore was no discrimination lu lit luthin thin case cane Apparently his position is that because no one else elso Is known to have paid tho the published cent 18 rate from Whiting to East Kast St. St Louis while his company was paying six cents therefore there thero was no discrimination On Os the contrary this very situation proves that not only was there discrimination but that this discrimination hind had worked out its logical log res e so o that no ono one else could ship at 18 IS cents in competition with the Standards Standard's six- six I cent rate Precisely this and other f secret t discriminations In shipments from Crom Whiting produced that complete state of oC monopoly in the vicinity of or i Chicago which tho the Standard now calmly designates as aL absence ence of or I f lion I This six-cent six Alton Altos rate ralo was a n. rebate rebate re bate hato In essence If Ie not In form forms and aull both In iii essence and form Corm It was ills ills- I crimination of or the most severe se and successful type Subterfuge The repot report t then takes U up tho the Standards Standard's Standards Standard's Stand Stand- ards ard's attempt to Justify Its use iso of tho six-cent six rato rate h by hy claiming that a certain tub tain application sheet tiled Hied with tho the Interstate Commerce Commission covered cov coy ered r ll th the case case- This sheet according to the Jut bureau au merely mado a claim that the Chicago o rate rato should apply to Whiting Whit 1 ing ing but made no un mention of ot th time tho un us filed special hIlling billing order concerning the six-cent six rate rato and therefore constituted constituted constituted no to the public rh The rhe contention n that Chicago and Eastern Illinois rate rato of oC Ci Gt cents from rom Whiting to East Kast St. St Louis Louls justified td tho the acceptance by tho the Standard of or tho the six- six cent rate over o tho the Alton Aiton is Js dismissed a an am woi worthless because tho time Chicago and Eastel Eastern n Illinois rate was just as secret as W was S the tho special Alton rate Tl-t Tl The facts as to this rate rato arc are set sel forth foith a as follows oll ws In October 1895 tho the Chicago o and Eastern Illinois railroad med flied with the I Interstate Commerce Commission a n. single mimeograph sheet stating the rate ratu on oil all from Cram Dolton III ill to Ea East t St. St I Louis was i J cents per hundred pounds There Iero is no evidence that this tills sheet I was ever olo distributed to an any shipper ox- ox I time the Standard Oil company un Hurt This rate read From Dolton not I from Crom Whiting or ot Chicago A note ho how ever evet- indicated that It might also bo be I used from Whiting but no independent who wanted to ship oil front from Chicago or Whiting to East Enst St. St Louis I or ort t. t Louis would over e think of ot looking looking look- look i In ing for a rate from Dolton Dolton I is isa isa a t village of ot about 1500 population just I outside of Chicago ago Its only claim claims to to I note is that It has been for many years cars the tho point of or origin for tor this thiN and und similar I Ie I ecret e ret rates Con Concealment is the this only motive motho for tor such luc a circuitous arrange arrange- ment Such was tho the obscure origin and character of or thi this justification rate V f Attention is then called to tho the fact that Mr when d cl b before the grand jury jun was unable to show show- I V that an any other shipper than tho time Static Static- Oll t had shipped a single Ingle t pound of or freight at a rate rat Jower ower than the the- published rate ralo and It is finally shown hown that all of ot the tho Standards Standard's shipments shipments ship ship- ments of oil all over o the Alton Aiton were falsely false falso- ly hilled billed at th the published cent 18 rate while white In the shipments ov over th the East East- crib om ht road th the rate was WIUf omitted altogether tl r. r these subterfuges clearly clearl 11 fl bA nI b t v. v 8 something II II- legal eg-a eg |