New-York tribune., 1906-05-19
AN UNAVOIDABLE ISSUE.

The controversy between Commissioner Gar
field and the Standard Oil and railroad off,
cials concerning the report on oil rate discrim-
nations has obviously reached such a point that
complete and authoritative exposition of the
whole subject must be made. The trustworthl-
ness Of a government department is involved
on the one hand, and on the other the business
honor of prominent men of affairs who, what
ever might be thought of some Of their methods
have at least always claimed and enjoyed the
reputation of square dealing within the recog-
niZed limits of the commercial code. We do
not attempt to judge who is right on these
points at issue. But the differences are appar-
emily too irrecOncilable to be due TO misunder-
standing and argument at cross purposes. It
is difficult to resist the conclusion that there
is element of deliberate Misrepresentation
somewhere which must be placed, or else a con-
ditiOn of astonishing ignorance.
II the Department of Commerce and Labor
is recklesSly publishing misstatements about
the manufacturing and transportation inter-
egts of the country, the fact cannot be estab-
lished too sOOn If official reports and statistics
cannot be relied upon as a basis for legisla-
tion but serve merely to mislead public Opin-
ion and inflame passion, they would better be
abolished altogether. The alternative is equal
ly serious. Mr.. Tuttle. the president of the
Boston & Maine, answering Mr.. Garfeld's re-
settled sections of the country" his road had
for years joined others in prorating oil traffic
Mr. Garfield replies that it refuses to prOrate
to 394 stations, including Lowell, Lynn Law
renee and Haverhill, Mass; Portland, Me- and
Portsmouth, n. H, hardly "sparsely settled
sections" Mr. Thayer. vice-president Of the
Pennsylvania, denied that the low rate between
Olean and Rochester and Buffalo was secret
and said that it was made for crude oil and
unfinished products between refineries Mr.
Garfield replies that in 1904 more than one
thousand cars of finished products were shipped
under that rate, that a large portion of New
York and Vermont was supplied in that way,
that the rate was unknown to independent ship
pers and that the rate order bore the words
Not to be posted" though in his latest reply
Mr.. Thayer disputes the sOundness OF this con-
tentlOn. Mr.. John d. ArchbOld, saws Mr. Gar
field, wrote to the Industrial Commission in
1901, stating that the rate from Whiting to
Birmingham, Ala, "A cents; to Mem
phis, IS cents, and TO Little Rock, Ark 30
cents. Nevertheless, according to Mr.. Garfield,
the Standard Oil actually paying at that
time 2915 cents from Whiting to Birmingham;
10 cents to Memphis and 26 cents to Little
Rock. The Commissioner traverses various de
mails Of the accuracy of his report and makes
answers which amount to fiat charges that the
pleas of the railroads and shippers are false in
substance if not in form.
Now. this is serious situation for great
railroad officials and captains OF industry
serious for The country as well as for them.
Their strong tower of defence against attempts
to legislate on rates and corporate management
has been their assumption that they were hon
Orable expert masters of the cOuntry's busi-
ncss who should be trusted by the country TO
run II. The people have not, perhaps, been
ready TO accept the theory OF divine regency.
but il has given great respect to the opinions
OF these men and deferred to their Judgment
on questions of government regulation OF busl-
ness assuming that while. from their point OF
view, acts might be economically and morally
right which. from the governments point OF
view. were contrary to public interest, yet they
were acting in good faith with the people. Nev
ertheless. If Mr.. Garfield is right, they are de.
liberately deceiving the people, and their ad-
vice about IA business problem Is not for an
instant to be trusted At the same moment there
is produced before the Interstate Commerce Com