The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1906-05-05
HITS OIL TRUST
President Transmits to Con-
gress the Report Of
Commissioner
Garfield.
ACCOMPANIED BY message
EVILS EXPOSED BY THE COY
ERNMENT INVESTIGATION

Secret Rates Given by Railroads to
Standard Oil--President Sees Rem
edy in Railroad Rate Legislation
Enormous Benefits of the Secret Rates
open Rates Also Arranged to Give
Trust Advantage over Competitors
Other Trusts Also FavOrcd-Law
Should be Passed to Correct Judge
Humphreys Immunity Decision.
Washington, May 4.-President Roose-
welt to-day transmitted to congress the
report Of James R. Garfield commits
sioner of corporations, giving the re-
suits Of his investigation of the subject
of transportation and freight rates in
connection with the oil industry. The
letter OF Commissioner Garfield to the
president accompanying the report was
also made public. The president ex-
presses the view that the report is of
capital importance because of the eff
fort now being made to secure such en-
largement of the powers of the inter-
state commerce commission as will con-
fer upon the commission power in some
measure adequate to meet the clearly
demonstrated needs OF the situation.
The facts set forth in the reports, he
declares, are for the most part not dis
puted. That the Standard Oil company
has benefited enormously up almost to
the present moment by secret rates;
many of which were clearly unlawful,
the president says the report clearly
shows, the benefit thereby secured
amounting to at least three-quarters of
a million year.
The message was received in both
senate and house at the opening of the
session to-day, and was Immediately
read:
Following is the text of the message:
10 the Senate and House of Represent
atives
I transmit herewith a report by the
commissioner of the bureau of corpora
lions in the department of commerce
and labor on the subject Of transporta-
ton and freight rates in connection
with the oil industry. The investiga-
ton, the results of part Of which are
summarized in this report, was under
taken in accordance with house resolu-
ton 400, passed February Is, 1905, but
for the reasons given in the report it
has been more general and extensive
than was called for in the resolution
itself.
call your especial attention to the
letter of transmittal accompanying and
summarizing the report, for the report
is of capital Importance in view Of the
effort now being made to secure such
enlargement of the powers of the inter-
Z state commerce commission as will con-
fer upon the commission power in some
measure adequate to meet the clearly
demonstrated needs of the situation.
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 transactions
are or are not technically legal. The
report shows that the Standard Oil
company has benefited enormously up
almost to the present moment by secret
rates, many of these secret rates being
clearly unlawful. This benefit amounts
to at least three-quarters Of a million a
year This three quarters of a million
represents the profit that the Standard
on company obtains at the expense of
the railroads; but of course the ulti-
mate result is that it obtains much
larger profit at the expense of the pub
lic 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 correct
ed by the railroads, so that most of
them have now been done away with.
This immediate correction, partial or
complete, of the evil of the secret rates
is of course, on the one hand, an &C.
acknowledgement that they were wrong,
and vet were persevered in until expos
ed: and, on the other hand, proof Of
the efficiency Of the work that has been
done by the bureau OF corporations. Inc
department of justice will take up the
question of instituting prosecutions in
at least certain of the cases. But it is
most desirable to enact into law the bill
introduced by Senator Knox to correct
the Interpretation of the immunity pro-
vision rendered in Judge Humphreys
decision. The hands of the government
have been greatly strengthened in Sc
curing an effective remedy by the re-
cent decision of the supreme court In
the case instituted by the government
against the tobacco trust, which decis-
ion permits the government to examine
the books and records of any corpora
ton engaged in interstate commerce;
and by the recent conviction and pun
ishment of the Chicago, Burlington and
Quincy railroad and certain of its OFF,
GERS
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 advantage
over its independent competitors. The
refusal of the railroads in certain cases
TO prorate produces analogous effects.