The Richmond palladium. (Richmond, Ind.) 1906-1907, 1906-05-05
Standard Oil and Sugar Mo-
nopoIy Roughly Handled in
Presidents Message.
CONDEMNS SPECIAL RATES
ROOSEVELT SAYS THE INTER.
STATE COMMERCE COMMISSION
MUST HAVE POWER TO REGU.
LATE RATES.
Publishers Press1

Publishers PressI
Washington May 4.-Presiden
Roosevelt's special message to Con
gress concerning the Oil industry, wa
communicates to both branches toda.
and in part was as follows:
The Senate and House of Representa-
tives!
transmit herewith a report by th'
Commissioner of the Bureau of Corpor
ations in the Department of Commerce
and Labor on the subject of transpor
tation and freight rates in connection
with the oil industry.
The facts set forth in this repor
are for the most part not disputed
1t is only the inferences from then
that are disputed, and even in thi
respect the dispute is practically lin
tied to the question as to whether thu
transactions are or are not tecE1icall,
legal. The report shows that tn,
Standard Oil Company has benefited
enormously up almost to the presen
moment by secret rates, many of these
secret rates being clearly unlawful
This benefit amounts to at least three
quarters of a million q year. This
lthree-quarter of a million represents
the profit that the Standard Oil Com
pany obtains at the expense of the
railroads; but of course the ultimate
result that it obtains a much larger
profit at the expense of the public
very striking result of the investiga
tion has been that shortly after 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 not been done a
way with This immediate correc
tion, 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 pre-
served in until exposed; and on the
other hand proof of the efficiency of
the work that has been done by the
Bureau of Corporations.
Government Strengthened.
The hands of the Government have
been greatly strengthened in securing
an effective remedy by the recent de
cision of the Supreme Cour, in the
case IL -tituted by the Governmen.
against he tobacco trust, which de,
cision IL .mits the Government to eX-
anime the books and records of any
corporation engaged in interstate com
merce; and by the recent conviction
and punishment of the Chicago, Bur
tain 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 it an overwhelming advan-
tage over it's Independent competitors.
The refusal of railroads in certain cas-
es to prorate products has analogous
effects. Thus in New England the re-
fusal of certain railway systems TO
prorate has resulted in keeping the
Standard Oil in absolute monopolistic
control of the field enabling it to
charge from three to four hundred
thousand dollars a year more to the
consumers of oil in New England
than they would have had to pay had
the price paid been that obtaining in
the competitive fields. This is n char
lacteristic example of the numerous
evils which are inevitable under q
system in which the big shipper and
the railroad are left free to crush out
all individual initiative and all power
of independent action because of the
absence OF adequate and thorough-go
ing governmental control.
Standard Not Only Ore.
1t is unfortunately not true that the
Standard Oil Company is the only
great corporation which in the imme-
diate past has benefited, and is at this
moment benefiting, in wholly improp-
er fashion by an elaborate series of
rate determinations, which permit it
to profit both at the expense of its
rivals and Of the general public. The
Attorney-General reports to me that
the investigation now going on as to
the shipments by the sugar trust over
the trunk lines running out of New
York City tends to show that the sug-
ar trust rarely If ever pays the lawful
rate for transportation. and is thus inn
properly, and probably unlawfully, ia.
vored at the expense of its competi-
tors and of the general public.
In the effort to prevent the railroads
from uniting for improper purposes
we have very unwisely prohibited
them from uniting for proper purpos-
es; that is for purposes of protection
to themselves and to the general pub
lie as against the power OF the great
corporations. They should certainly
be given power thus to unite on con-
ditions laid down by Congress. such
conditions to include the specific ap-
proval of the Interstate Commerce
Commission of any agreement to
which the railroads may come. IN
addition to this the Goscrnment must
interfere through its agents to ,,eorive
the railroad OF the ability to make to
the big corporations the concessions
which otherwise 1t is powerless to re.
fuse.
Is for Alcohol Bill.
Though not bearing upon the cues
tion of railroad rates, there are two