Decorah public opinion. (Decorah, Winneshiek County [Iowa]) 1895-1928, 1906-05-09
ROOSEVELT AND STANDARD OIL.


James r. Garfield, commissioner of cor
porations, giving the result of his in
vestigations on the subject of trans
portation and freight rates in con-
nection with the oil industry.
In his message the president ex-
presses the view that the report is of
capital Importance because of the
effort now being made to secure such
an enlargement of the powers of the
interstate commerce commission as
will confer upon the commission
power in some measure adequate to
meet the clearly demonstrated needs of
the situation. That the Standard Oil
company has benefited enormously up
almost to the present moment bv 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 dollars year.
He says:
1.-THE very striking result of the in
vestigation has been that shortly after
the discovery of these secret rates by
the commissioner the major portion of
them were promptly corrected by the
railroads, so that most Of them now
have been done away with. -
The statement is added that the de-
partment of justice will take up the
question of instituting prosecutions in
at least certain of the cases and the
hope is expressed that congress will
enact into law the bill by Senator
Knox to correct the Interpretation Of
the immunity providsion rendered in
Judge Humphreys decision.
The president declares that other
corporations besides the Standard Oil
profit by rate determinations and
mentions the sugar trust as one that
rarely pays a lawful rate for transpor-
tation.
In his report Commissioner Garfield
finds that the output of refined oil
amounts to 26, 600, 600 barrels annually,
of which the Standard Oil company
directly and indirectly controls about
23, 900, 900 barrels, and approximately
the same proportion OF the other
finished products of petroleum. Con-
tinuing the report says:
"The Standard claims the location
of its refineries and the use of pipe
lines are the natural advantages TO
which il is Justly entitled. While in
measure that is true, it must not be
forgotten that these advantages were
in part obtained by means of unfair
competitive methods after years of
fierce industrial strife.
"The development of the pipe line
system by the Standard was the result
of special agreements with railroad
companies. Furthermore, those So
called natural advantages have been
and are being greatly increased by
in freight rates which
give the Standard monopolistic control
of the greater portion of the country.
1.-The immediate result of this
delimination is shown by the exorbit-
ant profits obtained in non-competit-
i've fields. In 1904 the secret rates
saved to the Standard three quarters
of million dollars, representing the
difference between the open rates and
the rates actually paid.
"These determinations" he says,
shave been so long continued, so
secret, so ingeniously applied to the
new conditions of trade, and so large
in amount as to make it certain that
they were due to concerted action by
the Standard and the railroads. -
After calling attention to the good
which already has resulted from the
investigation Garfield SAYS the
changes have put the independents
upon fairer footing and make COM
petition possible in territories hereto
fore inaccessible. The report con-
cludes: Nevertheless, widespread
determinations in open rates still in
force leave the independents at SER
ious disadvantage. The investigation
has shown very clearly glaring defects
in the interstate commerce law, viz, the
method of filing and publishing tar
ifs.
Iowa stands second among the middle
west states in the number of rural
mail routes established. On April End
there were 80, 205 rural routes in oper-