Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
Yet other means of favoring large shippers at the expense of small
ones, are almost impossible to eradicate. Certain of these may be
illustrated by recently discovered practices of the Standard Oil
Company. They are fully described in a special report of the United
States Commissioner of Corporations in 1905. Upon the basis of this
evidence, extraordinary efforts were made by the Federal authorities
to secure convictions and to impose heavy fines for violation of the
Elkins law. But the company escaped heavy penalties, in the main, by
reason of legal technicalities. The prosecutions of 1906-1909, however,
cannot be regarded as valueless, merely because the company escaped
the imposition of fines aggregating millions of dollars. The moral
effect of it was thoroughly good; and it is now clear that laws can be
so drawn as to apply in future. Nor can any student of the evidence
doubt for a moment, that, whether strictly an infraction of the law
or not, the net result of these practices was to confer an advantage
upon this large shipper, not open to its smaller competitors. Certain
of its advantages, such as the ownership of pipe lines from the
wells to the seaboard refineries and the strategic location of its
plants, are the fruit of great resources and keen business acumen. But
other advantages, particularly the relative rates on refined oil from
Standard Oil plants and from centres of independent refining, are,
according to the report of the Bureau of Corporations, due to pressure
brought to bear upon the carriers. Whether they are or not, the result
is discriminatory just the same.
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