Milford chronicle., 1906-05-11
WOULD REGULATE
THE OIL TRUST TRUST
President Suggests Federal Control
Of Railroads to Prevent Rebates.
SENDS MESSAGE TO CONGRESS


blames the railroads for fostering such
monopolies through secret rebates. He
suggests these methods for curbing
corporations:
First-That the government exam
inc railroads as thoroughly as it ex-
amines national banks.
Second-That railroad rates be fixed
by the interstate commerce commits
sion subject to court review.
Third-That the railroads be per
mitted to combine to protect them
selves against great industrial corpo-
rations.
Fourth-That alcohol be placed on
the free list.
Fifth-That the remaining govern
ment oil lands be carefully protected.
Flagrant determinations by the rail-
roads in favor of the Standard Oil
company are revealed by Commits
sioner Garfeld's report on his investi-
cation. In almost every section of the
country that corporation has enjoyed
unfair advantages which have given it
a monopoly.
That the Standard not only received
secret rates from the railroads in the
past but is still receiving them is one
of Mr.. Garfield's charges. In 1904
alone he figures that the amount saved
to the corporation through discrimina-
tion was S75O,O0O.
Some direct rebates were paid he
discovered. In most states, though the
discrimination by the railroads was
effected through secret and semi-se-
cret rates, determinations in the open
of rates, determinations
in classification and rules Of shipment
and discrimination in treatment of pri-
vate tank cars.
So long continued, so secret so in
applied to new conditions of
trade. and so large in amount have
these determinations been, says Mr.
as to make certain that they
were due to concerted action by tn
Standard and the railroads.
Most of the secret rates and some
Of the open determinations discovered
by Mr. Garfeld's bureau have been |
by the railroads after such |
discovery. Therefore he thinks his in.
vestigation has already done good.
The price of oil. says Mr.. Garfield
Is from two to five cents a gallon |
higher in states where the Standard |
has no competitors. For shutting out
the Independents he blames the rail
roads in those states.
Presidents Message.
In his message the president ex-
presses the view that the report is OF
great importance because of the effort
low being made to secure such en-
of the powers of the inter
state commerce commission as will
,onfer upon the commission power to
meet the clearly demonstrated needs
If the situation. The statement is
ldded that the department of justice
will take up the question of instituting
in at least certain OF the
ases, and the hope is expressed that
will enact into law bill of
senator Knox to correct the interpre.
alton of the immunity provision ren.
ered in Judge Humphreys decision
Continuing, the president says:
"The report shows that the Standard
Ill company has benefited enormously
p almost to the present moment by
ecret rates, many of these secret
ates being clearly unlawful. The ben.
fit amounts to at least $750,OO0a year.
his $750,OOO represents the profit that
he Standard Oil company obtains at
he expense of the railroads; but OF
curse the ultimate result is that it
btains a much larger profit at the ex
ense of the public.
Big Profits in Secret Rates. r
"But in addition to these secret rates
le Standard Oil profits immensely by
pen rates. which are so arranged as
, give it an overwhelming advantage
yer it's Independent competitors. The q
9fusal of the railroads in certain cases Y
prorate produces analogous effects. t
hus, in New England the refusal of b
,rtain railway systems to prorate has e
,sulted in keeping the Standard Oil v
absolute monopolistic control Of the t
sld, enabling 1t to charge 100000 to a
100000 a year more to the consumers Il
oil iN New England than they would e
I've had to pay had the price paid n
zen that obtained in the competitive c.
lids. G
Sugar Trust Favored. VI
1.-THE attorney-general reports to me f.
at the investigation now going on
to the shipments by the sugar trust
er the trunk lines running out of
sw York city tends to show that the U
gar trust rarely if ever pays the law IN
rate for transportation, and is thus lu
properly, and probably unlawfully. DC
yored at the expense of its competi- tn
rs and Of the general public. tV
1.-THE government should have power IL
its agents to examine into the con- vi
ct of the railways-that is, the ex- 70
liners under the direction OF the in an
'-state commerce commission should Al
able TO examine as thoroughly into
: affairs of the railroad as bank ex-
liners now examine into the affairs
banks. Pa