Dakota farmers' leader. (Canton, S.D.) 1890-19??, 1906-05-11
FLAYS THE OIL TRUST
PRESIDENT SAYS MoNoPOIT'S
OPPRESSION MUST END.
Compctitiou-l<tlliug De-
clarcd to UaNc Gained Three
quarters or "a Million ~ Year While
Independents suffer.

quarters OF "a Million n Year while
I~ndcpcudcutS suffer.
President Roosevelt Friday transmitted
to Congress the report of James l.. Gar
field. Commissioner Of Corporations. Civ.
ing the results OF his investigation of tho
subject of transportation n freight
rates in connection with the oil industry.
In his message the President expresses
the view that the report is of great i'm
portanCc because Of the effort being mad"
TO confer upon the Interstate commerce
commission the power to meet the needs
of the situation. The facts set forth in
the report, he declares. are for the most
part not disputed. That the Standard Oil
Company has benefited enormously almost
to the present moment from secret rates,
many of which were unla awful. the FHrsi-
dent says the report clearly shows. tho
benefit thereby secured amounting TO at
least ~thrCc-QuartcrS Of a million dollars
a war.
That the hroadSiic FROM the Whit"
House hit its mark was shown by n
sweeping statement of denial given out by
tn" Standard officials in New York. in
which the adminiStrA indictment is
called unjust and untruthful; tho bust
ness methods Of tn" combine arc defended
and there arc lightly vrilCd snCcrs ut the
Presidents activity in generously offer
ing advice on n wide range of subjects
from race suicide to affairs Of s;atr.
Mcssnnr Of the President.
Following is the Presidents message .
Th" Scnatc and House OF Representatives.
i transmit herewith n report Ivy the Com
missioner OF the Bureau Of Corporations in
the lbpDa ri ElEnt OF pmmprT and Labor on
the subject of transportation aud freight
rates In connection with the oil industry.
which are summarized in this report. was
undertaken in accordance with House rcso-
luton 400, passed Feb. II. 1Doa, but Tor tho
reason" given In the report 1t has been more
general and extensive than was called for
In the resolution itself.
| call your especial attention TO tie lot
ter OF tranSmittal accompanying and sum
mariZtng the report for the report il Of
capital Importance in view Of the effort
now being mad" TO secure such enlarge
ment of the powers of the Interstate com
MERGE commission as will confer upon The
commission power in some measure AIDE.
1uately to meet the clcnrly demonstrated
IN this report are for the most part not
disputed. 1t is only the differences from
respect the dispute Is practically limited TO
the question ns to whether tho transac-
tians are or are not technically legal.
Brncnts by secret Rntc-.
The report shows that the Standard OH
Company has benefited ENORMOUSLY "p al
most to the present moment by secret
rates. many of these secret rates. being
clearly unlawful. This benefit amounts to
This thrce-qunrters of "A million represents
the profit that the standard Oil company
obtains at the expense Of the railroads
but Of course the ultimate result Is that
1t obtains a much larger profit at the OK
peDse of the public.
A very striking result of the investiga-
t.-., I-, t--. .I.1 t-lt. "a A. a..
covcry OF these secret rates by the commits
sioner 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 cor
%rection. partial or complete, Of the evil OF
the secret rates Is of course on, the one
wrong, aud yet were persevsred in until
exposed. and on the other hand n proof Of
the efficiency. Of the work that has been
done by the Bureau OF Corp0fat!oGs.
Prosecution Is Promised.
The Department of Justice will take UP
the question of instituting prosecutions In
Mt least certain OF the cases. But 1t is most
desirable to enact into law the bill intro.
duCed by Senator Knox to correct the in.
depreciation of the immunity provision rem
dered In Judge Humphreys decision. The
hands Of the government have been greatly
strengthened In securing an effective rem
edy by the recent decision of the Supreme
Court In the case Instituted by the gov.
s ssnIa = p sgn,hs' the 5ee po sonanGS tf ts srS w m1ns
the books and records Of any corporation
engaged In interstate miner and BY the
recent conviction and punishment Of the
Chicago, Burlington and Quincy railroad and
certain OF its officers.
But in addition to these secret rates the
Standard Oil profits Immensely by open
rates which are so arranged as to give 1t
an overwhelming advantage over its indie
pendent competitors. The refHsal OF the
duces analogous effects. Thus in New
England the refusal of certain railway sys-
TENS TO prorate has resulted In keeping
control Of the field, enabling it to charge
from three to four hundred thousand dol
lars a year more TO the consumers Of oil
in New England thar they would have had
to pay had the price paid been that Oh.
tanning in the competitive fields.
Government Control Needed.
This Is a characteristic example Of the
numerous evils which are inevitable under
a system in which the big shipper and the
railroad are left free to crush out all lndt
viduaI initiative and all power of indie
pendent action because Of the absence OF
adequate and thoroughgoing governments
control Exactly similar conditions obtain
in a large part Of the West and South
the fact that the granting to the govern.
rRent of the power to substitute n proper
for an improper rate Is In very many in
stances the only effective way in which to
prevent improper determinations in rates.
IT Ia not possible to put into figures the
exact amount by which the Standard prof
lt& through lHP gross BhFOEitISID stlOWH u
by the raiFroads in connection with the
open rates. The profit. of course. comes
not merely by the saving in the rate itself
as compared with its competitors. but By
the higher prices it is able to charge. and
(even without reference TO these higher
prfcesr by the complete control of the mar,
ket IL secures. thereby getting fhe profit
on the whole consumption. Here again the
only way by which the determinations can
lie cured is by comforting npoB the inter-
state commerce commission the power to
take m1fcE and effective action in regulat-
ing rates.
One feature Of the report which is espe
eially worthy Of attention - The showing
made as to the way in which the law Is
evaaed by treating as State commerce what
Is in reality merely a part of Interstate
commerce.
sngar Trust licensed
IT Is unfortunately not true that the
Standsrd OIL Company il the only great
corporation which in the Immediate past
mas benefited. and is at this moment ba1e.
citing, In wholly improper fashion by an
elaborate series Of rate Determinations
OVERWHELMING II III, Y,-nit Moth at Shs eI.