Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1906-05-07

Roosevelt yesterday transmitted 70
congress the report Of James 4. Gar.
field. commissioner of corporations.
giving the results of his investigation
of the subject Of transportation and
freight rates in connection with the
oil industry.
In his message the president ex.
pressed the view that the report is OF
capital Importance because of the ef
fort now being made to secure such en-
largement Of the powers Of the inter
state commerce commission AS will
confer upon the commission power il
some measure adequate to meet the
clearly demonstrated needs of the sit
uation.
The facts set forth in the report. hs
declares. are for the most part not dis
puted. That the Standard Oil Com
any has benefited enormously w
almost to the present moment by Sc
cret rates. many of which are clearly
unlawful. the president says the re
port clearly shows. the benefit there
by secured amounting to at least
three. qusrters Of million year
On this subject he says:
Public Pays the Expense.
This three-Quarters Of million
represents the profit that the STANDARD
Oil Company obtains At the expense
of the railroads: but Of course the III
innate result is that it obtains much
larger profit at the expense of the
public.
"A very striking result Of the in
vestigstion has been that shortly after
the discovery of these secret rates b,
the commissioner Of corporations the
major portion Of them were promptly
corrected by the railroads. so thai
most Of them have nov been don,
away with.
This immediate correction. par
tial or complete. Of the evil Of secre
rates, is. Of course. on the one hand
an acknowledgment tina, they wer.
wrong. and yet were persevered in un
til exposed: and. ON the other hand
n proof Of the efficiency Of the worE
that has been done by the bureau OF
corporations.
The statement is added that the de
psrtmeut OF justice will take up tn,
question 81 instituting prosecutions II
at least certain Of the cases, and tn,
opinion is expressed that congress viii
enact into law the bill Of Senator
Knox to correct the interpretation o,
the immunity provision rendered il
JudgeH humphreys decision Contin
uins. the president says:
Advantage Over Independents
But in addition to these secret
rates. Standard Oil profits immense
ly by open rates which are SO ar
ranged As 70 give il an overwhelming
advantage over its independent com
petitors.
This is characteristic example o.
the numerous evils which are newt
sble under system in which the bis
shipper and the railroads are let, free
to crush GU, sill individual initistivs
snd all power OF independent actor
because of the absence OF adequate
and thoroushsoips governmental con
trol. Exactly similar conditions Oh
tsin in $ large part Of the West and
Southwest
Is is not possible. he says. 70 pu,
into figures the exact smounc by
which the Standard Oil profit:
through the sross tsvoritism shown il
by the railroads in connection with
the OPEN rates
"Thst profit, OF course. comes no,
merely from the saving in the rate IL
sci: IS compared with its competitors,
tu, by the higher prices it is able Il
charge snd by the complete control d
the msrke. which j, secures. thereby
getting the profit on the whole con
sumption.
Device Used by Railroads
The president. calls attention 70 ths'
testUre 81 the report recording n,
msnner in which the law is evadei by
treating s. s.s.e commerce whs. il
resliIy is merely Part Of inters.s.,
commerce-
He says i, Is clearly shown tbs. thi.
device Is employed On the New Yor!
Central railrcsi. as we'll IS on many
other railroads. in such fashion as *
smoun, IL .hwArtins the purpose O,
the lsw. although the forms q. II,
.sw nasy be complied With.
l. Is unfortunately 10. true. he ssy,
tbs: the Standard oil Company is ID,
only corporation which has benei;.e<
sni = tensa.,ine in wholly iurrovel
fashion ty ST els bora.a series ~ rs,.
discr,m:rs,iors-
The sugar trust, be siis. sccorJiin.
70 the results q the Investigation