Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1906-05-04
TOday's Telegraphic News
Tho President and the OIL Trust.

Tho President and the oil Trust.
Washington, May 4.--President
Roosevelt today transmitted report by
James r. Garfield, Commissioner of the
Bureau of Corporations in the Depart
ment of Commerce and Labor, on the
subject Of transportation and freight
rates in connection with the oil industry.
Among other things the President says;
"rhe report shows that the Standard
Oil Company has benefited enormously
up almost to the present moment by
secret rates. many of these secret rates
being clearly unlawful. This benefit
amounts to at least three-quarters of a
million a year. This tEree-qusrters of
million represents the profit that the
Standard Oil Company obtains at
the expense of the railroads; but
of course The ultimate result is that
il obtains much larger profit at the
expense of the public. A very strk-
ing result of the investigation has
been that shortly alter the discovery
OF these secret rates by the Commissioner
of Corporations, the major portion OF
them were promptly corrected by the
railroads, so that most of them have now
been done away with. This immediate
correction, partial or complete, OF the
evil of the secret rates is OF course on the
one hand an acknowledgment that they
were wrong, and yet were perseyered
10 until exposed; and on the other
hand a proof of the efficiency OF the
work that has been done by the Bureau
of Corporations. The Department of
Justice will take up the question OF in
shutting prosecutions in Al least certain
of the cases. But it is most desirable to
enact into law the bill introduced by
Senator Knox to correct the interpre-
tation of the immunity provision rendered
10 Judge Humphreys decision. "
Blu. 10 addition to these secret rates the
Standard Oil profits immensely by open
rates, which are so arranged as to give
it an overwhelming advantage over It's
Independent competitors. 1t
is unfortunately not true that the Stan
dard Oil Company is the Only great cor
pOratiOn which 10 the immediate past
has benefited, and is at this moment
benefting, in wholly improper fashion
by an elaborate series of rate discrmi-
nation 9. which permit ii TO profit both
at the expense OF its rivals and of the
general public. The govern
ment must interfere through its agents
10 deprive the railrond of the ability to
make 10 the big corporations the con-
cessions which OIherw Use il is powerless
To refuse. The government
should have power by its agents 10 ex-
anime into the conduct of the railways
that is. the examiners under the direc-
ton of the Interstate Commerce Com
mission should be able to examine as
tho oughly into The affairs OF the rail
road IA bank examiners now examine
into the affairs of banks q"
In conclusion the President says !:
Though not be ring upon the question
of railroad rates, there are two measures,
consideration OF which il imperatively
suggested by the submission of this re-
port. The Standard Oil Company has,
largely by unfair or unlawful methods,
crushed out home competition. 1t is
highly desirable that an elemt mt of COM
petition should be introduced Oy the
passage of som, such law as that which
has already passed the House, putting
alcohol used in The arts and manutac-
lures upon the free list Furthermore,
the time has come when no oil or coal
lands held by the government, either
upon the public domain proper or in ter
rilory owned by the Indian tribes, should
be alenaled. The fee TO such lands
should be kept in the United |tates gov
eminent whether or not the profits arls-
ing from it are to be given to any Indian
tribe, aud the lands shout be leased
ouly on such terms aud for such periods
as will enable the government to keep
entire control thereof
New York, May 4 When the Presi.
DENTS message on the oil industry with
the accompanying report of MIR. Gar
field was received at the office of the
Standard Oil Company, in New York,
NJ. F. Z lott, general counsel of the
cOmpsnv, Was asked what reply he
cared to make. He gave All unqualified
denial of ali the charges Saying:
ut is difficult to comment hurriedly
and with due restraint on the ast0nish-
ing report of Mr.. Garfield aud the mes
sage of the President. We must, how.
eyer, in justice TO ourselves aud our
shareholders, Immediately express our
unbounded surprise over Mr.. Garhclfs
report, on which, of course, the Presi-
dents stricluns are based, and our un-
qualified declarations that it's absolute
" unfair and unjust toward u.