The Caucasian. (Clinton, N.C.) 188?-1913, 1906-05-10
PRESIDENT ON OIL
Mr.. Roosevelt Rakes Standard
People fore and Aft
DECLARES THEIR METHODS'DARK
An Array of Facts and Figures
Transmitted to Congress by the
President Which Convicts the
Standard Oil Company of Flagrant
Violations of the Law and Accuses
its Officials of Delibrate Lying.

Washington, Special.-The Presi-
dent has transmitted to both houses
of Congress the report Of Corpora
ton Commissioner Garfield, conveying
the long-expected revelations regard.
ing the methods and practices of the
Standard Oil Company and accom-
panylng the report is a special mes
sage from the President in which he
urges upon Congress the necessity Of
remedial legislation. The message in
part follows:
The Senate and House of Represen.
tatives:
L transmit herewith report by the
Commissioner Of the Bureau of Cor
poratlon IN the Department of Com
merce and Labor on the subject Of
transportation and freight 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 resolution 499, passed Febru-
airy 10, 1908, but for the reason Civ
en- IN the report it has been more
general and extensive than was call
ed for IN the resolution itself.
L 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 Interstate commerce
commission as will confer upon the
COMMISSION power In some measure
adequately to meet the clearly DEM
onstrated 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-
tions are or are not technically legal.
The report shows that the Standard
Oil Company has benefited enormous
ly up almost to the present moment
by secret rates, many of these secret
rates being clearly unlawful. This
quarters of a million a year. This
three-quarters of million represents
the profits that the Standard Oil
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
public. A very striking result of the
investigation has been that shortly
after the discovery that these secret
rates by the Commissioner of COrpor-
ations, the major portion Of them
were promptly corrected by the rail-
roads, so that most of them have now
been done away with. The immediate
correction. partial of 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 effici-
ency of the work that has been done
by the Bureau of Corporations. The
Department of Justice will take up
the question of instituting prosecu-
tions in at least certain of the cases.
But it is most desirable to enact IN
TO law the bill introduced by Senator
Knox to correct the Interpretation of
the immunity provision rendered in
Judge Humphreys decision. The
greatly strengthened IN seuring all
effective remedy by the recent de-
cision of the Supreme Court in the
case instituted by the government
against the tobacco trust which de-
eision permits the government to
examine the books and records of
any corporation engaged In inter
State commerce; and by the recent
conviction and punishment of the
Chicago, Burlington & Quincy Rail
road and certain of its officers.
But in addition to these secret
rates the Standard Oil profits immen-
sely by open rates, which are so ar
ranged as to give it an overwhelming
advantage over its independent COM
petitors. The refusal of the railroads
In certain eases to proate produces
analogous effect Thus In New Eng
land the refusal of certain railway
systems to prorate has resulted in
keeping the Stanard OIL in absolute
monopolistin control of the field, en-
abling it to charge from three tC
four thousand dollars year more
to the consumers Of oil in New Eng
land than they would have had to pay
had the price paid been that obtain
ing in the competitive fields.
Though not bearing upon tie queS-
ton of railroad rates, there are two
measures consideration of which is
imperatively suggested by the sub
mission Of this report. The Standard
Oil Company has, largely by hnfail
or unlawful methods, crushed out
home competition. 1t is highly de-
slrable that an element of compile
ton should be introduced by the pass
age of some such law as that which
has already passed the House, put
ting alcohol used in the arts and man.