The Corvallis times. (Corvallis, Or.) 1888-1909, 1906-05-08


mes age f the president. The re-
port is absolutely unfs If and unjust"
One of the most significant fea-
lures oftas report is that when the
attention pf The railroads was called
to certainsspecifc instances of re-
batting discovered by Garfield, they
discontinued the practice, thereby
acknowledging their guilt. AS the
president-says In his message, the
results already accomplished by the
trnth and aiprtial correction of the
evils complained of is proof of the
efficient work done by the bureau
of corporations.
The president uses Garfield's re-
port as a text for certain recon.
mendations besides those which he
will makein connection with the
railroad rate bill. He would have
congress correct the immunity law,
SO that officials of offending corpo.
rations cannot escape pros ecution;
he urges the passage of free alco-
hol bill, which would put another
spoke in the STANDARD Oil wheel
and would prevent the exploitation
of coal and oil lands-by the trust.
In his letter of transmittal the
president sites that the attorney
general in investigating shipments
bv the sugar trust over lines from
New York discovered that the trust
seldom pays lawful rate, being
favored at the expense Of compete
tors and the general public. He
deals with one argument of the op.
ponents in these words:
'Argument is sometimes advanc-
ed against comforting upon a gov.
ernmental body the power of super.
vision and control over the inter-
state commerce because it tends to
weaken the individual initiative.
Investigation such as this conclu.
sively disproves such allegation.
On the contrary proper play for in
dividual initiative can. only be Sc
cured by such governmental super
vision as will curb'those monopolies
which crush out all individual ini-
tiative.
Garfield states that the output of
kerosene in America is 26,0OO,0OO
barrels annually, of which the
Standard controls about %, 600, ,000.
It controls. approximately the same
proportion of other products of-pe-
troleum. He says the price of oil
is usually from 2 to cents higher
a gallon In noncompetitive than in
competitive fields. A reasonable
profit upon refined oil is about l
cent gallon.
1T is clear that exorbitant profits
are obtained in noncompstitive
fields. Monopolistic control extends
from the we'll of the producer to the
doorstep of the consumer. Regard
ing railroads he says:
The Standard has fabitually
received and is now receiving secret
rates and other unjust and illegal
discriminations."
Determinations take these forms:
Secret and semi-secret rates.
In open arrangement of rates.
In classification and rules of ship.
ment.
10 treatment of private tank cars.
Secret rates apply often on rates
within single states.
Secret rates are concealed by blind
billing. whereby rates are not on
freight bill, but are collected from
central office and concealed from
local agent.
Largest number of secret rats and
rebates in California, more than 80
being discovered there.
Multitude of discrimination pos
sibls in local rates on less than car
load lots.
Standard Oil has had important
voice in construction of open rates
to give it unfair advantage.
c. Pacific Coast all refneries re.
c7tya 10 cents per mile on loaded
and empty cars
Similar discrimination is practiced
on transcontinental railroads in
Northwest.
Interstate and state rates are go
combined as to favor Standard
Standard Oil, through pipe lines
and Oil steamers, is competitor of
railroads, and natural policy of rail-
roads would be to favor small re-
finers. The policy has been pur-
sued regarding other freight, but
reversed regarding oil.
Standard Oil denies receiving dis
elimination, but facts show it d.
rectly gained $4,000 in 1904 by
this means and vastly more indi-
rectly.
Defects in interstate law regarding
filing and publication Of tariffs en-
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