Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1906-05-04
UNLAWFUL RATES
GIVEN STANDARD
Railroads Have AL
lowed Secret
Rebates.
MILLION ANNUAL BENEFIT
Report of Commissioner of
Corporations Garfield Sent
to Congress.

Washington, May 4.-Presiden'
Roosevelt today transmitted to Con
gress the report of Commissioner OF
Corporations Garfield giving the re
suit OF his investigation on the sub
lect Of transportation and freight
rates in connection with the oil in
dustry. In the message the President
expressed the view that the report is
of capital importance. The facts sci
forth in the report are for the most
part undisputed. The President also
says the report shows clearly that the
Standard Oil Company has benefited
enormously almost to the present mo
ment by secret rates, many Of which
were unlawful, the benefits thereby
amounting to at least three-quarters
of million dollars each year. The
striking result of the investigation, he
said was that shortly after the dis.
covery of these secret rates by the
commission of corporations most OF
them were corrected by the railroads,
which he considers an acknowledg
ment that they were wrong.
Prosecution Likely to Follow.
The statement is added that the de-
partment of justice will take the up
question Of instituting prosecutions in
certain of the cases. The President
favors the element of competition and
the passage of some such law as that
which has already passed the House.
putting the alcohol used in arts and
manufactures on the free list and OF
keeping the fee to oil and coal lands
belonging to Indian tribes or on the
public domain In government lands to
be leased only on such terms and for
such periods as will enable the govern
ment to entirely control them.
Text Of Report.
In summarizing his report, Commits
sioner Carried speaks of his personal
visit to the oil fields and the great
mass of data he obtained personally
and through his bureau. He found the
output amounts to about 26,000,O00,
barrels of which the Standard con-
trolls about 23,0OO,OOO. The Standard
obtained the use of the pipe lines
through unfair competitive methods
and they We're then developed through
special agreements with the railroad
companies. And this advantage has
been increased greatly by discrimina
tion In freight rates both published
and secret. Both the interstate and
state which gives the Standard a
monopolistic control. Commissioner
Garfield then cites the fact that the
New York Central is the only road
which refused to give him access to
its records of state rates.
Favors to Standard.
He then refers to seven instances
of important discrimination in favor
of the Standard in various parts of the
country although the Standard at the
beginning of the investigation denied
1t had received rebates in late years
He says the investigation shows clear
ly at least one glaring defect in the
Interstate Commerce law, viz, the
method of filing and publishing tariffs
All state rates used in connection with
interstate shipments should be filed
with the Interstate Commerce Com
mission and a radical change should
be made In the direction of simplifying
tariffs and in the methods of posting
them.
Senate Approves Message.
Washington, May Am the Senate
today Senator Foraker made a motor
that the Presidents message be lait
on the table. Senator Foraker said
1T covers nearly all the questions now
under consideration in connection will
pending bills" On conclusion Of the
reading of the message in the House
both sides We'd with each other ir
their demonstrations of approval. The
House then took up the consideration
of the naval appropriation bill.
Vote on Smoot Case.
Washington, May 4.--The Senate
committee on privileges and elections
decided today to vote on the Senator
Smoot case May IS.
Washington, May 4.-The Senate be
gan Its session today by listening t.
the reading of the Presidents mes
sage on the connection of the trans
portation and OIL industries. The
House also received and read the mes
sage.