Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1906-05-10
GARFIELD REPORT.
bindings of Commissioner Of CorpO-
nations Regarding on Industry
Sent to Congress by President.
OF CAPITAL IMPORTANCE.
Standard OIL Company Hns BenAa
afted DnOrmOusIy By Unlawful
Secret RAtes--FOH Government
ContrOI Of OaI Fields.


Washington, May 5.-Presiden
Roosevelt Friday transmitted to con
gress the report OF James r Gar
field, commissioner Of corpora toni
giving the results Of his invest alto
Of the subject Of transportation an
freight rates IN connection with tn
oil industry.
In his message the president eG
presses the view that the report Is Q
capital importance because OF the Of
fort now being made to secure sucl
enlargement Of the powers OF the in
terstate commerce commission as will
confer upon the commission power IL
some measure adequate to meet thu
clearly demonstrated needs OF the
situation. That the Standard Oh
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 leas'
$T50, 900 a year. On This subject he
says:
This $750.0O0 represents the profit
that the Standard OIL company obtains
at the expense Of the railroads; but
Of course the ultimate result Is that
It obtains much larger profit at the
expense Of the public
A very striking result Of the investi-
cation has been that shortly after the
discovery Of these secret rates by the
commissioner OF corporations, the ma
jor portion Of them were promptly
corrected by the railroads, so that
most Of them have now been done
away with"
Tho statement h added that the
department Of Justice wfll take up
the question Of tnstituttng Drosecu-
tons In at least certain Of the cases.
Continuing. the president says:
"Bnt In addition to these secret
rates the Standard OIL profits i'm
mensely BY open rates which are SO
arranged as to give II an oreTwhelm-
ing advantage over tts independent
competitors"
II Is unfortunately not true he says.
that the Standard OIL company is the
only corporation which has benefited
and Is benef1tttng In wholly improper
fashion by an elaborate series Of
rate Discrimination The Sugar
Trust, he adds, according to the re-
suits Of the Investigation now in pro-
gross, rarely u ever pays the lawful
rate for transportation.
He favors. as an element Of COM
petition the passage Of some such law
as that which has already passed the
house putting alcohol used in the arts
on the free list and of keeping the
fee TO oil and coal lands Of the In
dian tribes or on the public domain
in the government, the lands to be
leased only on such terms and for such |
periods as will enable the govern
ment to entirely control them.
Mr.. Garfield then refers to seven
Instances of important discrimina-
lions In favor Of the Stanrd OIL com
Dany IN various parts Of the country
and says that most Of the secret rates
and some of the open determinations
discovered by the bureau were
abolished by the railroads shortly af-
:er such discovery. Mr.. Garfield says
that the changes affected have put the
upon fairer footing
md make competition possible in ter
'ltories heretofore inaccessible. The
'eport concludes as follows:
Nevertheless, the widespread dis
in open rates still in
orce leave the independents at serious
disadvantage.
This investigation has shown very
dearly one glazing defect In the inter.
tate commerce law, viz; The meth
ID Of filing and publishing tariffs
Although a tariff or rate has been
lied with the commission In compli-
.nce with the terms Of the law, none
tut the favored shipper may know
u its existence. All state rates used
n connection with interstate ship
nents should be filed with the inter.
tato commerce commission and 9
adical change should be made in the
Erection Of simplifying tariffs and in
Of posting and fling Them
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