The San Francisco call., 1906-05-05


Roosevelt today transmitted to Con-
gross The report of James r.. Garfield.
Commissioner OF Corporations. giving
the results of mis- investigation of the
Cbject of transportation and freight
rates in connection with the oil in
oustry.
In mis- message the President ex-
pressed The view that the report is OF
G. pital importance because OF the ef-
fort now being made to secure such
enlargement OF the powers OF the In
te-state Commerce Commission as viii
confer upon the commission power in
some measure adequate to meet the
clearly demonstrated needs of the sit
Uation. The facts set forth in the re-
port, ne declares, are for the most
part not disputed. That the Standard
OH Company has benefited enormous
ly up almost TO the present moment
b. secret rates, many Of which were
clearly unlawful, The President says
the report clearly shows. the benefit
thereby secured amounting TO at least
three quarters of a million a year. on
lhis subject he says:
This three-quarters Of a million rep
resents the profit that the Standard
Oil Company obtains at the expense of
the railroads but Of course the ulti-
mate result is that it obtains a much
larger profir AT the expense of the pub
lie A very striking result of the in
vestigation has been that shortly
afser The discovery Of these secret
sates by the Commissioners of Corpo-
rati0ns The major portion OF them
were promptly corrected by the rail-
rceds. 50 that most Of them have now
been done away with. This immediate
correction, partial or complete of the
evil Of the secret rates. is Of course
ca the one hand an acknowledged
taat they were wrong and yet were
perscVered in until exposed; md on
the other hand a proof of the efficacy
OF the work that has been done by the
Bureau Of Corporations
WILL PROSECUTE
The statement is added that the De-
partment OF Justice viii take up the
question Of instituting prosecutions in
al least certain Of the cases. and the
hope is expressed that Congress will
enact into law the bill of Senator
Knox TO crorect the Interpretation if
the immunity provision rendered in
Judge Humphreys decision.
But ia addition 10 these secret
rates" says the President, THE Stand
al6 on profits Immediately by open
rates, which are so arranged as TO give
Il an Overwhelming advantage over IT'S
Independent competitors. This is q
characteristic example OF the numer-
Dus evils which are inevitable under
e system by which the big shipper
end the railroad are left free 10 crush
out ali individual initiative and all
power CT independent action because
@ the absence Of adequate and thor
pugh-going Governmental control. Ex-
sctly similar conditions obtain in a
large part Of the West and South
west"
The President calls attention to that
feature OF thee report regarding the
manner in which the law is evaded by
treating as State commerce what in
reality Is merely a part Of interstate
commerce. He says IL is clearly shown
THAT this device is employed on the
New York Central Railroad, as well
rs on many other railroads. in such
fashion as TO amount to thWarting the
purpose Of the law. although the forms
of the law may be complied with"
II IS unfortunately not true, he says,
that The Standard OH Company is the
Dnly corporation which has benefited
End is benefting in wholly improper
fashion by an elaborate series of rate
Determinations The sugar trust. be
investigation now in progress. rarely
81 ever pays the lawful rate for trans
portation.
CONTROL COAL LANDS.
He favors as an element of compe-
tition the passage Of some such law
a that which has already passed the
House, putting alcohol used in the arts
Bnd manufactures on the free list and
Cf keeping the fee 10 oil and coal
lands OF the Indians. or the public do
main OF the Government. the lands to
be leased only on such terms and for
such periods as Will enable the Gov
efnfnent to entirely control them
accompanying the Presidents mes
sage was the report OF Commissioner
Garfield, who speaks Of his PERSONA
AlSit 70 the Oh AeluS anu OF the great
mass OF data obtained by him either
personally or through agents OF the
bureau Of Corporations.
Taking up the subject Of the output
O. refined oil Mr.. Garfield finds that it
amounts to about e5,000,000 barrels an
nually. of which the Standard Oil
Company directly and indirectly con-
trolls about % ,00O. 900 and approximate
iy the same proportion OF the other
finished products Of petroleum. Con-
tiruing, the report says: