The Plymouth tribune. (Plymouth, Ind.) 1901-1911, 1906-05-10
FLAYS THE OIL TRUST
PRESIDENT SAYS MONOPCL-YS
OPPRESSION MUST END.
Compefftion-KiIIing Octopus De-
clared to Have Gained Three
quarters of a Million a Year While
Independents Suffer.


ing the results of his investigation OF the
subject of transportation and freight
rates in connection with the oil industry.
In his message the President expresses
the view that the report is of great inn
portance because of the effort being made
10 confer upon the interstate commerce
commission the power to meet the needs
of the situation. The facts set forth in
the report, he declares, are for the most
part not disputed. That the Standard Oil
Company has benefited enormously almost
to the present moment from secret rates.
many of which were unlawful, the Presi-
dent says the report clearly shows, the
benefit thereby secured amounting to at
least three-quarters of million dollars
year.
That the broadside from the White
House hit its mark was shown by a
sweeping statement of denial given out by
the Standard officials in New York, in
which the administration indictment is
called unjust and untruthful, the bust
ness methods of the combine are defended
and there are lightly yelled sneers at the
Presidents activity in generously offer
ing advice on a wide range of subjects
from race suicide to affairs of state.
Message of the President.
Following Is the Presidents message:
the Senate and House of Representatives
II transmit herewith report by the Com;
missioner of the Bureau of Corporat lions In
the Department of Commerce and Labor on
the subject of transportation and freight
rates In connection with the oil industry.
Inc investigation, the results of part OF
which are summarized In this report, was
undertaken In accordance with House reso-
luton 400, passed Feb Is. 1905, but for the
reasons given In the report II has been more
general and extensive than was called for
in the resolution itself
call your especial attention to the let
ter OF transmittal accompanying and sum-
marizing the report; for the report is of
capital Importance In view of the effort
now being made to secure such enlarge
ment OF the powers of the interstate COM
merce commission as will confer upon the
commission power in some measure ade-
quately to meet the clearly demonstrated
needs Of the situation. The facts set forth
In this report are for the most part not
disputed Ii Is only the differences from
them that are disputed, and even in this
the question to whether The transac-
lions are or are not technically legal.
Benefits by secre4 Rates.
Company has benefited enormously up al
most to the present moment by secret
rates, many of these secret rates being
clearly unlawful This benefit amounts to
at least three quarters Of q million year.
This three-quarters Of a million represents
the profit that the Standard Oil Company
obtains at the expense of the railroads !;
but OF course the ultimate result Is that
II obtains a much larger profit at the ex-
A very striking result OF the investiga-
ton has been that shortly after the dis
covery Of these secret rates by the commits
innS 81 fnr nm
OF them were promptly corrected by the
railroads, so that most of them have now
been done away with This immediate cor
the secret rates is Of course on the one
hand an acknowledgment that they were
wrong, ana yet were persevered In until
the efficiency Of the work that has been
done by the Bureau Of Corporations.
Prosecution II Promfsed.
The Department of Justice will take up
the question OF instituting prosecutions in
at least certain Of the cases. But IL is most
desirable TO enact Into law the bill intro
duced by Senator Knox to correct the In
IA nS Of The
hancs OF the government have been greatly
strengthened In securing an effective rem
edy by the recent decision of the Supreme
Court In the case instituted by the gov
eminent against the tobacco trust, which
decision permits the government to examine
the books and records of any corporation
engaged In interstate commerce and by the
recent conviction and punishment of the
Chicago. Burlington and Quincy railroad and
certain of its officers.
But In addition to these secret rates the
Standard Oil profits Immensely by open
rates which arranged to give 1t
an overwhelming advantage over it's indie
pendent competitors. The refusal Of the
railroads in certain cases to prorate pro-
England he refusal Of certain railway sys-
TENS to prorate has resulted In keeping
the Standard oil In absolute monopolistic
control OF the field. enabling IL t. charge
from three to four hundred thousand dol
| lars a year more to the consumers Of oil
In New England than they would have had
20 pay had the price paid been that OBJ
tanning In the competitive fields.
Government Control Needed.
This is characteristic example of the
numerous evils which are inevitable under
a system In which the big shipper and the
| railroad are left free to crush out all indi-
vidual initiative and all power Of indie
| pendent action because of the absence OF
| control. Exactly similar conditions obtain
| In a large part OF the West aud South
west. This particular instance exenplifes
ment of the power to substitute proper
| for an improper rate Is In very many in
stances the only effective way In which to
prevent improper determinations In rates.
IL
| exact amount by which the Standard prof
| Its through the gross favoritism shown 1t
| by the railroads In connection with the
open rates. The he profit ont o. course comes ss
| as compared with its competitors, but by
| the higher prices 1t Is able to charge, and
| (even without reference to these higher
pricesj by the complete control Of the mar
| ket II secures, thereby getting the profit
| on the whole consumption. Here again the
only way by which the Determinations can
be cured is BY comforting comforting upon the inter r.
take quick and effective action IN regulat-
One feature of the report which is espe-
| cially worthy Of attention Is the showing
| made as TO the way in which the law is
eyaded by treating as State commerce what
| ia In reality merely part Of interstate
/ commerce.
| Sugar Trust Accused.
| 1t Is unfortunately not true that the
Standard OIL Company is the only great
| corporation which In the immediate past
| has benefited, and is at this moment bene-
fitting. In wholly improper fashion by an
elaborate series of rate determinations
| pense of its rivals and Of the general pub
/ lie The Attorney General reports to me
| that the investigation now going on as to
the shipments by the sugar trust over the
i trunk lines running out of New York City
| tends to show that the sugar trust rarely.
! II ever, pays the lawful rate for transpor-
tation, and is thus improperly. and prob
| ably unlawfuly, favored at the expense OF
! It's competitors and Of the general public.
The argument Is sometimes advanced
| against comforting upon some governmental
body the power Of supervision and control
| over interstate commerce, that to do so
| tends to weaken individual initiative. iu-
/ yestigations such as this conclusively dis
| prove any such allegation. On the con-
trary. the proper play for individual in
| itiatlve can only be secured by such gov
L