The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-05-04

Mdy 1OS1uOhS
Roosevelt today>transmitted to congress
the report of James R. Garfield, COM
missioner of corporations, giving the re-
suits of his investigation of Transports
ton and freight rates in connection
with the oil industry.
The president expresses the view that
the report is Of capital Importance, be-
cause of the effort now being made to
secure such enlargement of the scope of
the interstate commerce commission as
will confer upon it power to meet the
demonstrated needs of the situation.
The facts in the report, he declares, are
| for the most part not disputed.
That the Standard Oil company has
benefited enormously. up almost to the
present moment, by 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 million a
year. On this subject he says:
Public Pays Major Part
| ssThisr three-quarter of million an
nually, represents the profit that the
i standard Oil company obtains at the
4 expense of the railroads; but. of courses,
! the ultimate result is that it obtains
/ much larger profit at the expense of the
! public.
GA very striking result of the inves-
tigation has been that shortly after the
commissioner of corporations, the major
! portion OF them were promptly correct
ed by the railroads., so that most of
! them have now been done away with.
| This immediate correction, partial or
complete. of the evil of the secret rates,
i IS, of course, on the one hand an ac
. acknowledgements that they were wrong
posed; and on the other hand proof of
the efficiency of the work that has been
done by the bureau of corporations. !"
..i Prepares to Prosecute.
The statement is added that the de-
partment of justice will take up the
question of lnstituting prosecutions in
at least certain of the cases, and the
hope is expressed that congress will
enact into law the bill of Senator Knox
to correct the Interpretation of the
Immunity provision rendered in Judge
Humphreys decision. Continuing, the
| president says:
rates the Standard Oil profits immense.
ly by open rates, which are 50 ar.
ranged as to give it an overwhelming
advantage over it's independent com.
petitors. This is a characteristic ex.
2 ample of the numerous evils which are
inevitable under system in which the
big shipper and the railroad are left
free to crush out all individual mi
tiative and all power of independent
| action because of the absence of AIDE
quate and. thorogoing governmental
control. Exactly similar conditions OBJ
tain in large part of the west and
q southwest
= Gross Favoritism Enriches.
1t is not possible, he says, to put into
}, figures the exact amount by which tht
n Standard profits thru the gross favor
T itlsm shown 1t by the railroads il
e connection with the open rates.
g "The profit, of course, comes mo-
S merely by the saving in The rate it
d self as compared with it's competitors
e but by the higher prices it is able t.
e charge by the complete control of tn,
+ market it secures, thereby getting tn,
g profit on the whole consumption.
i, The president calls attention to tina
n feature of the report regarding ,th
manner in which the law is evaded b,
n treating. as state commerce what il
l. reality is merely part of interstat,
e commerce. He says it is clearly shown
l. ssthat this device is employed on tn
It New York Central railroad, as we'll a
r on many other railroads, in such fash
s ion as to amount to thwartIng the puI
o pose of the law, altho the forms of tn
V law may be complied with
o Favors Free Alcohol
1t is unfortunately not true, he says
E. that the Standard Oil company is TIN
It only corporation which has benefite.
l., and is beneftting in wholly imprope
d fashion by an elaborate series of rat
lie determinations
IS The sugar trust, he adds, according
ID to the Investigation now in progress
W rarely if ever pays the lawful rate TO
ID transportation.
lie He declares that in the effort t
prevent the railroads from uniting 70
improper purposes, eve have very III
wisely prohibited them from unitin
for proper purposes; that is, for pul
poses of protecting themselves and tn
N general public as against the power o
II the great corporations.
He favors as an element of compel
tion the passage of some such law q
G. that which has already passed tn
at house, putting alcohol used in the arr
e. on the free list and of keeping the fe
y, to oil and coal lands of the India
ID tribes Or on the public domain in tn
as government. the lands to be leased onl
ob 4or, e. ~ IL ,