New-York tribune., 1906-05-05
THE STANDARD OIL REPORT.

The indictment of the Standard Oil Company
drawn by Commissioner Garfield in his report TO
Congress rudely skaters faith in that corpora
fion's protestatiOns Of injured innocence and re-
mOnstrances against undeserved censure. stan
dard Oil has been the target for years of the
crusaders against trust theories and trust meth
DDS. IL has been attacked with bitterness ana
an extravaganza which have often excited IN
credulity and led 10 a reaction Of sentiment IN
the companys favor This reaction has been
helped along by repeated declarations on the part
of it's officers or representatives, that, whatever
might have been it's faults in the past, those
faults had been amended and the corporations
skirts cleared from any further suspicion of
wrongdOing Many persons have been convinced
by the announcement that the Standard Oil Com
pany in recent years has not accepted rebates
or other favors from the railroads, and has,
owing to it's pipe lines, no longer a commercial
motive for seeking such favOrs They have been
disposed. accordingly to dismiss the scarifcation
to which the company has continued to be sub
jected as mere clamOr against wealth and the
accumulation of wealth.
The Tribune has never been moved by clamor
of the latter sort. 1t has held that corporation
should not be condemned merely on the score of
its immensity or of its colossal success in over
coming business rivalry. If it's practices did not
violate law and morals it entitled to reap the
benefits of business sagacity and business fore
sight. AS we have said, apOlogists for the Stan
dard Oil Company have cOntended that it's meth
ods in recent years have been entirely legal. and
some of it's officers even now deny that the Oper-
atiOns described by Commissioner Garfield act
uaIly violate existing statutes. But it will be
difficult TO convince the American public that the
transactions exposed do not constitute defiance
Of the spirit if not the letter, of the law, and do
not put the company in the unenviable attitude
of prOf1ting by practices which Congress has
condemned and sought to put an end to-
As President Roosevelt truly says, in his mes
sage to Congress transmitting the Garfield re-
port abuses such as have been uncovered are
not adequately met by criminal prosecutions.
That is good deal like closing the stable door
after the horse has been stolen. The better plan
is to guard in advance against rebates and dis
ordinations by limiting the opportunities OF
law-breaking shippers and carriers. 1t is too
much to hope perhaps, that corporations will not
break the laws if they can break them in cOmpar-
ative security. A corporations morals are usually
those of the least moral of its officers or manag-
ers. It would be wise, therefore, to extend and
strengthen the powers Of the Interstate Com
merce Commission. as the President suggests,
with view to regulating railroad rates, making
all ratings public and breaking the secret alli-
ances between railroads and favored shippers
which have encouraged monopoly and burdened
industry. The railroads, II they are wise, will
welcome a release from the pressure of rebate
seekers pressure which they have often felt
unable to resist. And great industrial corpora
tiOns like the Standard Oil Company will be
wise IL they, too. learn the lesson that business
is not law unto itself. but must be conducted
with due respect for the legal rights of smaller
competitors and of the general public.