Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-11-30

| business interests of the country; to CO.
| operate with, and not to antagonize indus
| trial interests; and that the immediate OBJ
| ject of its inquiries is to assist in securing
beneficial legislation and not criminal
prosecution. Legitimate business interests,
| therefore, law-respecting individuals and
corporations. are beginning to realize that
| they have nothing to fear from the exer-
| else of this great governmental power of
| inquiry.
Correction Of Misapprehension.
| t.1Ahe public, too, is beginning to under
| stand the purpose of the bureau" continued
| Mr.. Garfield land the minds of those most
| interested are becoming adjusted to its mo-
| tives and methods and are giving US cordial
! cooperation and assistance. They realize
| that we are not engaged in securing evil
| dence for criminal prosecutions, or to prove
| the existence of evils and difficulties; but
| to find accurate knowledge of industrial
| conditions and methods, as a basis of legis-
! lative action to remove difficulties and
| remedy evils We must find the causes,
leaving Congress to apply the remedy, and
| the judicial branch Of the government to
| deal with those who are criminally liable.
] In their investigations, our agents nee
| essarily acquire knowledge Of facts, which
| must be confidential, but the methods of re-
| porting and making public the results of
| Investigations. through the President. pre-
| vents the infringement of private rights or
| the disclosure of secrets which would In
| jure the legitimate business of compeh-
| tor. The government should secure and
| protect fair business competition, freedom
from discrimination. and such publicity
concerning corporate organizations as Will
| disclose genuine financial worth and honest
methods. 1t should fully protect the per-
| sons and corporation that are obeying the
| law, and promptly punish those who vio-
late 1t. Under present industrial conditions,
dishonesty in promotion and operation,
ta1;
means of rebates. etc, the publication of
misleading financial statements and other
evils, are common. They cannot be con-
cealed and In such cases, where facts are
found to show violations of law or betrayal
of public trust, they will be promptly re-
ported to the President, for such action as
he may deem right and necessary. That
is, when we find anything criminal will
take 1t to him. He in the exercise of his
discretion, may send it to the Attorney
General or he may not.
The Beef Trust Report.
1.-The only report we have made thus far
is on the beef trust, which was in obedience
to resolution of the House of Represen-
tatives. The President transmitted to Con-
gress such part of it. as he believed should
be given to the public, with an explanatory
message, in which he said:
l transmit herewith a report from the
secretary OF Commerce and Labor upon
that portion of the resolution of the House
of Representatives, adopted March T. 1904
having to do with the prices of cattle and
dressed beef, the margins between such
prices, and the organization, conduct and
profits of the corporation engaged in the
beef-packing industry. In view of the fact
that the Department of Justice is now
engaged upon other matters involved in the
resolution, the Secretary of Commerce and
Labor cannot. at this time, report there
on
I'm other words the President told Con-
gress. In language as plain as he could
make 1t. that 1t was inexpedient to make
pubic the evidence which the Attorney
General and his assistants were basing
their prosecution Of the beef trust Yet
the bureau WAS critised for not doing that
very thing. The people who critised us
evidently did not read the report"
Complaints Of Private Persons,
The bureau naturally receives a large
number of complaints from private persons
concerning the management Of specific cor
porations. They want assistance in secur-
Ing information concerning their transac-
lions; they ask legal advice or financial
assistance and protection against competi-
tors eXorbftant prices or unfair treatment.
They want the bureau to investigate and
expose the schemes of promoters and the
transactions of syndicates. All of these
communications are treated respectfully
and the writers are encouraged to furnish
U
tain; but they are informed of the limited
Jurisdiction of the bureau and are referred
to the Department of Justice If they hap
pen to charge criminal violation of the
laws. These complaints are apparently
prompted by various neutrality-suspicious., re-
vense, disappointment, etc.
There has been great deal of indigna-
ton as well as misapprehension because
there has been no sensational exposure of
the affairs of the Standard Oil Company
Many people have assumed that the bu-
reau had the power to overthrow that great
corporation and compel 1t to yield to pub
lie clamor. They seem to believe that Com
missioner Garfield has authority to compel
1t to buy oil that it does not need and pay
higher prices than the market quotations
AS was the case In the beef trust proceed
ings, there seems to be a general disap-
pointment that the managers have not been
denounced as criminals and condemned as
enemies to the public, but the inquiry into
the petroleum industry is unfinished The
agents of the bureau are now investigating
corporations dealing with oil, tobacco su-
gar coal, iron, steel and lumber but they
will not be able to report upon any Of them
for long time Vast interests are involved
and the information, to have any value
must be accurate and complete. The in
quiry cannot be done hurriedly, the motto
of the bureau is that "haste must give way
to thoroughness," and no statement can
be reported until it is confirmed. Com
missioner Garfield is not after sensations
but the truth.
Method Of Inquiry.
The agents inquire first into the struc-
ture and organization of a business; then
into the management and methods Of the
persons and corporations engaged; they go
to the centers of production and manufac-
ture to investigate physical conditions and
see how the industry Is carried on: they
find the cost of raw material, the price of
labor the working expenses, the transpor-
tation charges. the cost Of packing, hand
ling, etc They learn how the product is
placed on the market and how it is sold and
delivered, and the expense Of each step is
recorded Then they look into profits and
ascertain what becomes of them; how much
Is paid in salaries and dividends: how much
in betterments and repairs, and pursue
their Inquiries until they have obtained
a full working knowledge of the physical,
financial and economic conditions OF an
industry. and their reports will be very
useful for Congress in tariff legislation.
When this Information Is gathered (and
that is what about forty men are
doing), 1t will be carefully d!gested and
the essential facts will be laid before the
President In formal reports. Under his
direction so much of II as is lust and pror,-