The French Broad hustler. [volume] (Hendersonville, N.C.) 1896-1912, 1906-05-10
STANDARD OIL FLAYED
IN PRESIDENTS MESSAGE
Secret Rebates and Hug. Unl ,aful
Ir'iiis Vigorously Attacked by
R9oS-YsIt aal Prosecutions ,
-
Frcmisel.
CO,EEzHSSIOSEs CARE ELB'S fi1DWG5

VAfhEiSEIVAL u4At LLUS I'll sUIAuS
Monopoly Guilt Up by EatIroad.-Tfust
Esnsdts Enorm pu.ly From "U"iust
anh Illegal Rates. and HAS. AdvanI-
age Over independents Even in Open
1sates-passage of Rate But ani Cor
Teetiom of Humphrey Decision Urged.
Washington, D. C.-FlagraEt and
persistent violation of the law by the
Standard Oil Company, its enormous
profits from unlawful secret rates by
which it has been enabled to bleed the
public of still greater profits. II the
c~Onnivance of railroads in violation or
the law. are laid bare by President
Roosevelt in his message TO Congress,
based on the report of James II. Gar
field, Commissions Of Corporations. OF
his investigation of Standard Oil,
which is transmitted with the message.
In the message the President renewS
his suggestion for Governmental SUI
pervision and control of railroads. He
declares it necessary not only for the
protection of the public. but for the
protection Of the railroads themselves.
The Investigation disclosed. rs, the
President points out, that up to the
time when it was begun the Standard
Oil Trust profited to the extent of at
least $3.50, 900 a year from secret re-
hates from railroads. In addition 1T
was favored by open rates III all COM
petitive fields.
President Roosevelt declares III effect
that the great corporations known as
trusts have the railroads at their
mercy.
In the Presidents message and the
Garfield report the officials of the
Standard Oil Company are accused
of lying. of crushing out competition
by unlawful means, of obtaining mon
Opalies by secret understandings with
railroads. and of practically all OF the
crimes that have been alleged against
the great trust.
The Presidents only recommended
lions in his message are that the i'm
muHity law be corrected. that the free
alcohol bill be passed. which would be
Il setback for the Standard. and that
the further exploitation by II trusts
of coal and oil lands owned by the
Government be prevented.
Tie message is. in part. as follows:
a very striking result of the inves-
tf@ation has been THAI shortly after thc
discovery of these secret rates by
the Commissioner of Corporations the
major portion of them were promptly
corrected by the railroads, so that the
most of them have now been done
away with. This immediate corrections.
partial or complete, of the evil of the
secret rates, is, of course. on the one
hand an Acknowledgement that they
were wrong. and yet were p~ersevered
i'll until exposed; and on the other hand
Il proof of the efficiency of the work
that has been done by the Bureau Of
Corporations.
The Department Of Justice will
take up the question Of inStitutinG
prosecutions in at least certain of the
eases. But it is most desirable to en-
act into law the bill introduced by Sen
ator Knox to correct the Interpretation
Of the immunity provision rendered i'll
Judge Humphreys decision. The hands
of the Government have been greatly
strengthened in securing an effective
remedy by the recent decision of the
Supreme Court in the case instituted
by the Government against the To-
bacco Trust, which decision permits
the Government to examine the books
and records Of any corporation engaged
III CIV ~ AN
recent conviction and punishment of
the Chicago. Burlington and Quincy
Railroad and certain of lis officers.
"Rnt: III addition to these secret rates.
the Standard Oil profits immensely by
OneB rates, which are so arranged as
to give it IA overwhelming advantage
over its independent competitors. The
refusal of the railroads in certain cases
to pco-rate produces analogous effects.
Thus III New England the refusal of
certain railway systems 70 DYO-rate has
resulted i'll keeping the Standard Oil in
absolute I~nonoDolistic control of the
field. enabling it to charge from three
10 fOur hundred thousand dollars Il
wear more to the consumers of oil in
New England than they would have
had 10 pay had the price paid been
that obtaining in the competitive
feis.a~
Tie message continues:
IL is not possible to nut into figures
the exact amount by which the Stand
ard profits through the gross favOritism
shown it by the railroads in connec-
ton with the open rates. Tile profit.
of course. comes not merely by the
saving III the rate itself as coDlnared
with its competitors. but by the higher
priccsEi it is able to charge. and ieVen
without reference to these higher
pricesI by tha complete control OF the
market which it secures. thereby get
ting the prett On the whole consulnp-
ton.
III is unfortunately not true" states
tlle President, shat the Standard Oil
is the only great corporation which is
heneffll& in wholly Improper fashion,.
The ACCOMPLISHMENTS investigation
teD6s to show that the Sugar Trust
rarely. IL ever. pays the lawful rate"
I'm the subject of curbing monopo-
lies. the message says:
''The argument is sometimes adj