The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1906-06-07


Commissioner Garfield
The Senate and House OF Representatives:
report by Commissioner OF the Bureau
OF Corporations in the Department OF Commerce and Labor
subject Of transportation and freight in connection with the oil
industry The investigations the results OF part which are unmar-
lied this report undertaken accordance with House reou
ton 49, passed February but for the given the
resolution itself
panyng and summarizing the for the report of capital mpo
lance view OF the effort being made such enlarge
ent OF the OF the Interstate Commerce Commission will
meet the Clearly demonstrated needs OF the situation The fact: set
forth in this report for the part disputed
differences from them that disputed and this respect
actions technically legal The report shows
Standard Oil Company has benefited enormously up almost the
moment by many these being clear
y unlawful This benefit least hree-quarters mill
Ion This hreequarers of million represents the profit that
the Standard OH Company obtains at the expense the railroads. but
OF course the ultimate result that obtains much larger profit at
"A very striking result of the investigation has been that shortly
after the discovery of these rates by the Commission Of Copor
aons the major portion of them promptly corrected by the rail-
roads so that most OF them have now been done away with This
immediate correction partial complete of the evil of the secret
rates is OF the hand acknowledg that they
and yet until exposed and the 9TH
proof the efficiency that
+SG 0 S, pr @ @ I at the e1 h, Gq ol the S S
tor Knox the Interpretation OF the immunity provision
dered in Judge Humphreys decision The hands Of the government
have been greatly strengthened securing effective remedy by
the decision OF the Supreme Court in the instituted by the
government against the Tobacco Trust which decision permits
government any corporation
gagged by
ment of the Chicago Burlington and Quincy Railroad and certain
Standard profits
mensey by open which arranged give
Whemg advantage its independent competitors The refusal OF
the railroads certain orate produces analogous effects
Thus New England the refusal certain railway systems
rate has resulted keeping the Standard Oil absolute monoposc
control OF the field enabling it charge from three thousand four
thousand dollars year the of oil in New Eng
they would pay price obtaining
in the competitive fields This characteristic example
merous evils which inevitable under system big ship
per and the railroad left free individual initiative
and all power independent action absence
dos obtain large part OF the West and Southwest This par
uar instance eXempHhes the fact that the granting the
OF the to substitute proper for improper in
nn Instances the only effective way in which to prevent improper
determinations in
1T possible put figures exact amount by
roads connection with the open The profit
pcttor but by the higher prices able charge and (even with
reference these higher prices by the complete the
sumption Here again the only by which the determinations
be cured by comforting upon the Interstate Commerce Commission
the power take quick and effective action regulating the
One feature OF the report which especially worthy OF attention is
the owing made TIC in which the law is evaded by treating
State what is reality merely part of interstate
II is clearly shown for instance that this device employed
on the New YORK central Railroad as well as on many other raroa
i'll such fashion thwang the purpose the law al
though the forms OF the law may be complied with
at unfortunately not true Standard Company the
only great corporation which immediate past benefited and
is this moment benehng in wholly improper fashion by eab
ora series Of rate determinations which permit to profit
the expense OF its rivals and OF the general public The Attorney
General reports that the investigation gong on as to the
shipments Sugar Trust lines running New
York city that the Sugar Trust rarely if the
lawful Tor transportation and is thus improperly and probably
unaw ored at the of its competitors and OF the general
The argument is sometimes advanced against comforting upon
body the supervision and control inter
that tend to weaken individual initiative In
vsngons such this conusvey dspove such allegation
On the the play Tor individual initiative can only DC
secured by such governmental supervision as will curb those mono
pccs which all individual initiative The railroad itself
aid the interests OF its own
stockholders against OF these great corporations loosely known
I'm the efforts to prevent the railroads from uniting improper
purposes very unwise prohibited them from uniting Tor pro-