Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1906-05-10
FLAYS THE OIL TRUST
PRESIDENT SAYS MONOPOLY'S
OPPRESSION MUST END.
ComDetition-ILiIIing Octopus De-
ciared to Have Gained Three
quarters of a Million n Year While
Independents suffer.

President Roosevelt Friday transmitted
TO Congress the report of James r. Gar
field, Commissioner of Corporations, Civ
ing the results of his Investigation of the
subject of transportation and freight
rates in connection with the oil industry.
In his message the President expresses
the view that the report is of great i'm
portance because of the effort being made
TO confer upon the interstate commerce
commission the power to meet the needs
of 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 almost
TO the present moment from secret rates,
many of which were unlawful, the Presi-
dent says the report clearly shows, the
benefit thereby secured amounting to at
least three-quarterS of a million dollars
year.
That the broadside from the White
House hit its mark was shown by a
sweeping statement of denial given out by
the Standard officials in New FORK. in
which the administration indictment is
called unjust and untruthful, the bust
ness methods of the combine are defended
and there are lightly yelled sneers at the
Presidents activity in generously offer
ing advice on a wide range of subjects
from race suicide to affairs of state.
Message of the President.
Following is the Presidents message:
The Senate and House of Representatives
i transmit herewith report bv the Com
Rnraa1 Of in,
the Department of Commerce 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 reso-
luton 400, passed Feb. 10, 1905, but for the
reasons given in the report it has been more
general and extensive than was called for
in the resolution itself.
L call your especial attention to the let
ter of transmittal accompanying and sum
mafZlnS the report. for the report is OF
capital Importance in view of the effort
now being made to secure such enlarge
ment of the powers of the interstate com
merce commission will confer upon the
commission power in some measure ade
quately to meet the clearly demonstrated
needs of the situation. The facts set fortl
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 tc
lions are or are not technically legal.
Benefits ny Secret Rates.
The report shows that the Standard Oil
Company has benefited enormously up al
most to the present moment by secret
rates, many of these secret rates being
clearly unlawful. This benefit amounts tC
at least three-QuarterS of a million Il wear
This three-quarters of million represents
the profit that the Standard Oil Company
obtains at the expense of the railroads
but of course the ultimate result is thai
it obtains a much larger profit at the ex
pense of the public.
very striking result of the investga
ton has been that shortly after the dis
coVery of these secret rates by the commits
sioner of corporations the major portion
of them were promptly corrected by the
railroads, so that most of them have now
been done away with. This immediate cor
rection, partial or complete: of the evil OF
the secret rates is of course on the one
hand acknowledgment that they were
wrong, and yet were persevered in until
exposed, and on the other hand a proof OF
the efficiency of the work that has beer
done by the Bureau of Corporations.
Prosecution Is Promised.
The Department of Justice will take VI
the question of instituting prosecutions il
at least certain of the cases. But it is most
desirable to enact into law the bill intro
duced by Senator Knox to correct the IN
depreciation of the immunity provision rem
hands of the government have been greatly
strengthened in securing an effective rem
edy by the recent decision of the Supreme
Court in the case instituted by the gov
eminent against the tobacco trust which
decision permits the government to examine
the books and records of any corporation
engaged in interstate commerce and by the
recent conviction and punishment of the
Chicago, Burlington and Quincy railroad anC
certain of its officers.
But in addition to these secret rates thu
Standard Oil profits immensely by Oper
rates which are so arranged as TO give il
an overwhelming advantage over its indie
per 'ent competitors The refusal of the
re iLroads in certain cases to prorate pro
duces analogous effects. Thus in New
England the refusal of certain railway sys
the Standard Oil in absolute monopoisti(
control of the field, enabling it to charge
from three to four hundred thousand dol
lars q year more to the consumers of OF
in New England than they would have ha(
to pay had the price paid been that OBJ
tanning in the competitive fields
Government Control Needed.
This is a characteristic example of the
numerous evils which are inevitable under
a system in which the big shipper and the
railroad are left free to crush out all indi
vidual initiative and all power of indie
pendent action because of the absence OF
adequate and thoroughgoing governmental
control. Exactly similar conditions obtaiI
IN a large part Oh the west ana south
west. This particular instance exemplifes
the fact that the granting TO the govern
ment of the power to substitute proper
for an improper rate is in very many in
stances the only effective way in which t
prevent improper determinations in rates.
1t is not possible to put into figures the
exact amount by which the Standard prof
its through the gross favoritism shown II
by the railroads in connection with the
open rates The profit, of course, come:
not merely by the saving in the rate itsel1
as compared with its competitors, but by
the higher prices it is able to charge, anC
(even without reference to these higher
prices) by the complete control of the mar
ket it secures, thereby getting the profit
on the whole consumption. Here again the
only wav by which the determinations car
be cured is by comforting upon the inter
state commerce commission the power Il
take quick and effective action in regu at
ing rates.
ciaIIy worthy of attention is the showing
made as to the way in which the law i!
evaded by treating as State commerce wha'
is in reality merely a part of inCerstat'
commerce.
Sugar Trust Accused.
II is unfortunately not true that thu
Standard Oil Company is the only grea
corporation which in the immediate pas
has benefited. and is at this moment bene
fitting, in wholly improper fashion by al
elaborate series of rate discrimination:
pense of its rivals and of the general pub
lie The Attorney General reports to m'
that the investigation now going on Il
the shipments by the sugar trust over thu
trunk lines running out of New York CITY
tends to show that the sugar trust rarely
if ever. paws the lawful rate for transpor
tati0n and is thus improperly, and prob
ably unlawfulIy. favored at the expense u
its competitors and of the general public.
The argument is sometimes advanced
against comforting upon some governmental
body the power of supervision and contro
over interstate commerce, that 10 do sc
tends to weaken individual initiative. In
Hestigations such as this conclusiyely dis
nroye any such allegation. On the con
trarv. the proper play for individual in
itiatfve can only be secured by such goT
Improved Smelling Furnace.
An improved smelling furnace recently
installed in a foundry in Canada uses Goa
instead of coke, a about One-halt the
II -l,.lr h E1H.c