Wednesday, July 15, 2009

Standard Oil

Standard Oil was predominant American integrated oil producing, transporting, refining, and marketing company. Trifling differences in distances are made an excuse for large differences in rates favorable to the Standard Oil Company are ignored where they are against the Standard.

Sometimes connecting roads prorate on oil that is, make through rates which are lower than the combination of local rates; sometimes they refuse to prorate; but in either case the result of their policy is to favor the Standard Oil Company , while large differences in distances. 

Different methods are used in different places and under different conditions, but the net result is that from Maine to California the general arrangement of open rates on petroleum oil is such as to give the Standard an unreasonable advantage over its competitors. 

Almost everywhere the rates from the shipping points used exclusively, or almost exclusively, by the Standard are relatively lower than the rates from the shipping points of its competitors. Rates have been made low to let the Standard into markets, or they have been made high to keep its competitors out of markets. 

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