Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1906-05-11
A MESSAGE
To Congress Concerning
Oil Investigation.
GARFIELD REPORT
Is Transmitted to Both Houses by
the President, With Recommend
alton for Action.

Washington, d. G. - President
Roosevelt Friday transmitted to con-
gress a message concerning the oil in
dustry Of the United States. The mes
sage was accompanied by the report Of
James R. Garfield, commissioner of
corporations, who has been investigat-
ing the affairs of the Standard Oil Co.
and the relation of that company to
the railroads of the country. Following
are salient points of the message:
II transmit herewith a report by the
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 report
are for the most part not disputed. 1t
is only the differences from them that
are disputed, and even in this respect
the dispute is practically limited to
the question as to whether the trans
actions are or are not technically
legal. The report shows that the
Standard Oil Co. has benefited enor-
mously up almost to the present mo
ment by secret rates, many of these
oSCicJ IdISS DelHS ClcdIly Unlawful
This benefit amounts to at least three
quarters of a million year.
"a very striking result of the inves-
tigation 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 now been done
away with. This immediate correc-
ton, 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 persevered
in until exposed; and on the other
hand a proof of the efficiency of the
work that has been done by the
bureau of corporations. The depart
ment of justice will take up the ques-
tion of instituting prosecutions in at
least certain of the cases.
"But in addition to these secret
rates the Standard Oil profits i'm
mensely by open rates, which are so
: arranged as to give it an overwhelm-
ing advantage over it's independent
competitors.
''The argument is sometimes ad-
vanced against comforting upon some
governmental body the power of su-
pervision and control over inter state
commerce, that to do so tends to
weaken Individual initiative. Investi-
cations such as this conclusiveIy dis
prove any such allegation.
What is needed is the comforting
upon the commission of ample AFFIRM
ative power, so conferred as to make
its decisions take effect at once, sub
ject only to such action by the court
as is demanded by the constitution.
"The government should have pow
er by its agents to examine into the
conduct of the railways-that is, the
examiners under the direction of the
Interstate commerce commission
should be able to examine as thor.
oughly into the affairs of the railroad
as bank examiners examine banks.
Though not bearing upon the ques
tion of railroad rates. there are two
measures consideration of which Is
imperatively suggested by the submis
sion of this report. The Standard OF
Co. has, largely by unfair or unlawful
methods, crushed out home competi
ton. 1t is highly desirable that al
element of competition should be in
troduced by the passage of some sucf
law as that which has already passed
the house, putting alcohol used in thu
arts and manufactures upon the fret
list. Furthermore, the time has com,
when no oil or coal lands held by the
government, either upon the publ,
domain proper or in territory ownet
by the Indian tribes, should be alien
ated. The fee to such lands should b.
kept in the United States governmen
whether or not the profits arising from
1t are to be given to any Indian tribe
and the lands should be leased onl
on such terms and for such periods a
will enable the government to keel
entire control thereof.
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