The National tribune., 1906-05-10
THE PREsIRENr AND STANDARD OIL.

IustratlOni or his splendid courage In
tackling the mighty Standard OIL which
he did in a 'special message to Congress
last Friday. in a way 1t was absolutely
necessaryrthat he should do this, be-
cause. true or untrue. it is firmly be-
lieved by. the mass Of the people that
the Standard, Oil is the greatest and
worst sinner of all the trusts and cor
porations. Cnless it was brought under
the fire Of Investigation all the other
proceedings against trusts and combi-
nations would seem more or less trivial
1t would De Said that the smaller game
was being hunted, but the lion of the
field was too terrible to tackle. In his
message the President states squarely
and boldly that the Standard Oil Com
methods. crushed out home competi-
ton, and is therefore a legitimate OBJ
ject for investigation and regulation
He says that the company has bene-
flied enormously by secret rates, and
has also been the recipient of gross
favOritism in connection with open
rates. He does not confine himself to
Garfield's report as a basis. he makes
direct and specific charges, referring
to that report to support these, and
announces that the Department of JUS
tice will take up the question Of insti-
tuting prosecutions in certain cases
which have been brought to the Gov
ernment's attention. He says:
at is not possible to put into figures
the exact amount by which the Stand
ism shown it by the railroads in con-
nection with the open rates. The profit,
or course. comes not merely by the
saving In the rate itself as compared
with its competitors. but by the higher
prices 1t is able to charge. and (even
without reference to these higher
pr1ces) by the complete control of the
market which it secures, thereby get
ting the profit on the whole consump-
ton Here, again, the only way by
which the determinations can be cured
Is by comforting upon the Interstate
Commerce Commission the power to
take quick and effective action in reg
ulating the rates.
Zone feature of the report which is
especially worthy of attention is the
showing made as to the way in which
the law is evaded by treating as State
commerce what is In reality merely a
part OF Interstate commerce. 1t IS
clearly shown, for instance, that this
device is employed on the New York
Central Railroad, as well as on many
other railroads, in such fashion as to
amount to thwarting the purpose Of the
law. although the forms of the law
may be complied with
The Standard OTIS managers have
promptly and boldly replied to this
challenge of the Presilenr. Messrs.
Rogers and Archbold say:
"He (the Presidency has given us Of
his advice most generously upon every
subject, from the size Of our families
to the mistake OF the Federal Judges,
and some, error is inevitable now and
then to the most conservative man un-
der such circumstances.
I'VE SAY fatty that any assertion
that the STANDARD Oil Company has
been or rs hSW knowingly engaged in
practices which are unlawful Is alike
untruthfuf and unjust.
'The grief, which the President ex-
presses in his message over the nabil-
ity of the, railroads to combine and
protect Themselves. from the shippers
will probably arouse amusement.
1.-The President says respecting this
investigation, that the facts are not in
dispute, only the differences are dis
puted. The ). Standard OH Company
furnished the facts. and a man with a
muck-rake dug out such as under his
manipulation he felt would prove dam
aging.
1--WE are engaged in a large and hor-
Orable business. We are conducting it
honOrably. and we sincerely believe in
conformity to law
The first part of this is flippant, i'm
pudent and wholly unworthy Of a dis
cussion Of this gravity. It is but just
to the Standard Oil people to say
however. that they proceed to directly
traverse the statements and conclusions
Of the President and Commissioner
Garfield. and support their contention
that they are proceeding with all prop
err respect for the law OF which they
things. they claim that they built their
pipe lines, not in agreement with the
railroads, but against their opposition,
which seems more likely than the
Presidents statement. Messrs. Rogers
and Archbold say with propriety that
they are entitled to the benefits which
their enterprise in constructing the
pipe lines won them.
The President makes very prac-
teal and sensible recommendation that
the Government should have power to
examine into the conduct Of the rail-
roads as thoroughly as 1t now has the
power to. examine into the conduct Of
National banks. This is much prefer
able than to trust to the courts for
regulation. since a lawsuit, while good
in many ways. is a very inadequate
method. His idea is that the Interstate
Commerce Commission should have am
pie powers for examination and for
mandatory orders to take effect at once,
subject only to such action by the courts
as is demanded by the Constitution.
That is. the courts have the power.
which cannot be taken from them, to
interfere If the action Of the Commits
sion became in effect confscatory, or IL
the Commission should attempt to go
beyond the powers conferred upon It
by Congress- The Presidents final rec
concentrations are: