The Miller sun. (Miller, Hand County, S.D.) 190?-19??, 1906-05-16
FLAYS THE OIL TRUST
PRESIDENT SAYS MoNoPoLY'S
OPPRESSION MUST END.
Competftion-Ki1linE Octopus De-
clared to Have Gained Three
quarters of Million a Year While
Independents Suffer.

President Roosevelt Friday transmitted
TO Congress the report of James r. Gar
field, Commissioner of Corporations, Civ
ing the results of his investigation of the
subject of transportation and freight
rates in connection with tie oil industry.
In his message the President expresses
the view that the report is of great i'm
portance because of the effort being made
TO confer upon the interstate commerce
commission the power to meet the needs
of the situation. The facts set forth in
the report, he declares, are for the most
part not disputed. That the Standard Oil
Company has benefited enormously almost
to the present moment from secret rates,
many of which were unlawful, the Presi-
dent says the report clearly shows, the
benefit thereby secured amounting to at
least thres-Quarters of a million dollars
year.
That the broadside from the White
Houvc hit its mark was shown by a,
sweeping statement of denial given out by
the Standard officials in New York, in
which the administration indictment Is
called unjust and untruthful, the bust
ness methods of the combine are defended
and there are lightly yelled sneers at the
PRESIDENTS activity in generously offer
ing advice on wide range of subjects
from race suicide to affairs of state.
Message of the President.
Following Is the Presidents message:
The Senate and House Of Representatives
Il transmit herewith a report by the Com.
missioner Of the Bureau of Corporations in
the Department. Of Commerce and Labor on
mt prat rhk
rates In connection with the oil industry
The investigation, the results Of part Of
which are summarized In this report, was
undertaken In accordance with House reso
luton 499, passed Feb. 10, 1905, but for the
reasons given In the report it has been more
general and extensive than was called for
In the resolution itself.
l call your especial attention to the let
Ter or transmittal accompanying and sum-
marking the report; for the report Is of
capital Importance In view of the effort
ment OF the powers of the interstate COM
merce commission as will confer upon the
commission power In some measure ade-
-quately 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 transac-
lions are or are not technically legal.
Benefits by Secret Rates.
The report shows that the Standard Oil
Company has benefited enormously up al
most 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 year.
This three-quarters of million represents
the profit that the Standard Oil Company
obtains at the expense of the railroads
but of course the ultimate result is that
1t obtains much larger profit at the ex-
pense or the public.
A very striking result of the investiga-
ton has been that shortly after the dis
coyery OF these secret rates by the commits
sion .I 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 cor
rection, partial or complete, of the evil of
hand an acknowledgment that they were
wrong, and yet were persevered in until
exposed, and on the other hand a proof of
the eflciency Of the work that has been
done by the Bureau Of Corporations.
Prosecution Is Promised.
The 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 intro
duced by Senator Knox to correct the In.
depreciation of the immunity provision rem
dered In Judge Humphreys decision. The
hands OF the government have been greatly
strengthened In securing an effective rem
sdy by the recent decision of the Supreme
Court In the case instituted by the gov
eminent against the tobacco trust, which
decision permits the government to examine
engaged In interstate commerce and by the
recent conviction and punishment Of the
Chicago, Burlington and Quincy railroad and
certain 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 1t
m overwhelming advantage over its indie
railroads in certain cases to prorate pro-
duces analogous effects. Thus in New
England the refusal of certain railway sys-
the Standard Oil in absolute monopolistic
control of the field enabling 1t to charge
from three to four hundred thousand dol
lars year more to the consumers of oil
in New England than they would have had
to pay had the price paid been that OBJ
tanning In the competitive fields.
Government Control Needed.
This is q characteristic example of the
numerous evils which are Inevitable under
a system In which the big shipper and the
railroad are left free to crush out all indi-
vidual initiative and all power Of indie
pendent action because of the absence of
adequate and thoroughgo!ng governmental
in large part of the West and South
west. This particular instance exemplifes
the fact that the granting to the govern
for an improper rate Is In very many In
stances the only effective way in which to
prevent imprope- Determinations in rates.
1t is not possible to put into figures the
exact amount by which the Standard prof
its through the gross favoritism shown 1t
by the railroads In connection with the
open rates. This profit, of course, comes
not merely by the saving In the rate itself
as compared with its competitors but by
the higher prices 1t is able to charge, and
(even without reference to these higher
prices) by the complete control of the mar
ket 1t secures, thereby getting the profit
on the whole consumption. Here again the
only way by which the determinations can
be cured Is by comforting upon the inter
state commerce commission the power to
take quick and effective action In regulat-
ing rates
One feature OF the report which Is espe-