Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1906-05-04
President Sends Special Mes.
sage to Congress on Sub.
Iect Of Their Relation.
TRANSMITS GARFIELD REPORT
Shows Very Clearly That the
Standard Oil Co. Has Had
Special Favors.
Fayors Retention ny Government OF
Fec TO Coal and OIL Lands In Indian
Territory and on Public Domain.

Washington May 4.-President
Roosevelt today transmitted to Con-
eress the report OF James II. Garfield.
commissioner of corporations, giving
the results OF his Investigation Of the
subject of transportation and freight
rates in connection with the oil in
dustry.
REPORT IMPORTANT.
In his message the president ex-
pressed the view that the report Is
OF capital importance because OF the
effort now being made to secure such
enlargement OF the powers OF the IN
terstate commerce commission as VIII
confer upon the commission power IN
some measure adequate TO meet inc
clearly demonstrated needs or the
situation The facts set forth IN the
report, he declares, are for the most
part not disputed. That the Standard
Oh company has benefited enormously
M almost to the present moment by
secret rates. many OF which were
clearly unlawful. the president says
the report clearly shows, the benent
thereby secured amounting to at least
three quarters of million a year.
on this subject he says:
STANDARD OIL PROFITS.
''This three quarters OF a million rep
resents the profit that the standard on
company obtains at the expense or the
railroads, but Of course the ultimate
result is that IL obtains a much larger
profit at the expense of the public.
very striking result OF the investigation
has been that shortly after the dis
coyery OF these secret rates ny the
commissioner of corporations the major
portion of them We're promptly cor
rected by the railroads 80 that most
~ them have now been done away
with. This immaculate correction.par-
tial or complete, ~ tie evil OF the sc,
cret rates. Is of course on the one na,u
AN acknowledgment That they were
wrong and vet were persevered IN until
EXPOSED; and on the other hand
proof ~ the efficiency Of the work that
has beer done by the bureau OF cor
porations,"
MAY BRING PROSECUTIONS.
The statement II added that the de-
partment Of justice will take up the
question of instituting prosecutions IN
AT least certain az the cases. and inc
hope Is expressed that Congress VIII
enact into law the bill Of Senator Knox
to correct the Interpretation OF the I'M
munity provision rendered In Judge
Humphreys decision. Continuing, the
president said
INDEPENDENTS AT DIsADVAN-
TAGE
"But IN addition to these secret
rates the Standard OIL profits inn
mensely by open rates, which ara 50
arranged as to give II an overwhelm-
ing advantage over its Independent
competitors. This Is q characteristic
example Of the numerous evils when
are Inevitable under system in which
the big shipper and the railroad are
left free 20 crush out all individual
initiative and all power of independent
action because OF the absence OF ade-
quato and thorough. going govern
mental control Exactly similar con-
dltions obtain in a large part of the
west and southwest"
II Is not possible. he says to put in
10 figures the exact amount by which
the Standard profits through the gross
favoritism shown II by the railroads
in connection with the open rates.
GETS 1T BOTH WAYS.
"'rhe pront Of course comes not
merely by the saving in the rate Itself
as compared with its competitors, but
by the higher prices It Is able to
charge ana by the complete control
Of the market which II secures. there
by getting the proflt on the whole con-
sumption"
The president calls attention to that
feature Of the report regarding the
manner I'm uthiph 40 Ia tG aynnp1 Inv
treating as state commerce what In
reality IL merely a. part of interstate
commerce. He says II IL clearly shown
that this device Is employed on the
New York Central iailroad rs well
rs on many other railroads, I'm such
fashion as TO amount to thwarting the
purpose Of the law, although tho forms
OF the law may he complied with
OTHERS ALSO BENEFIT.
II Is unfortunately not true. he says
that the Standard OIL company Is the
only corporation which has benefited
and IL benetiting In wholly improper
fashion by an elaborate series of rate
Determinations Tho sugar trust, III
adds, according to the results of the
investigation now IN progress rarely
II ever, pays the lawful rate for trans
portation. He declares that In the
effort to prevent the railroads from
uniting for improper purposes. NV,
have very unwisely prohibited them
from uniting FOR proper purposes: that
s. for purposes Of protecting them.
selves and the general public ~
against the power of the great cor.
porations."
He fayors as an element OF compe.
tition the passage of some such law AZ
that which has already passed the
house, putting alcohol used In the arts
and manufactures on the free list, and
OF keeping the fee to oil and coal lands
OF the Indian Territory tribes or on the
public domain I'm the government, the
lands to be leased only on such terms
ana for such periods as Will enable the
government TO entirely control them.
GARFlELD's REPORT
In summarizing his report Commits
soner Garfield speaks of his personal
visit to the oil fields and OF the great
mass OF data obtained by him either
personally or through agents of the
bureau Of corporations Tho prgtilui