Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1906-05-05
ROOSEVELT SENDS MESSAGE TO
CONGRESS REGARDING OIL
INDUSTRY
UNLAWFUL METHODS
Prosecutions May Be lnstituted-says
Report Of Commissioners Garfield Is
OF Capital Importance Because Of
Effort to Enlarge Powers Of Inter-
state Commerce Commission.

Washington, D. c., MAY A. pres,.
dent Roosevelt today transmitted "a
congress the report of James R Gar.
Held, commissioner of Corporations
giving the results OF his investigation
OF the subject of transportation and
freight rates in connection with the
oil industry
IN his message the President ex.
presses the view that the report is OF
capital Importance because of the ef-
lorI now being made to secure such
an enlargement of the powers Of the
interstate commerce commission, as
VIII CONFER upon the commission the
power IN some measure ADEQUATE to
meet clearly the demonstrated needs
OF the situation.
Given Secret Ratea.
That the Standard OH company has
nenentted enormously up almost to
lne present moment by secret rates,
many OF which We're clearly unlawful,
PRESIDENT Roosevelt says the report
clearly shows, the benefit thereby se-
cured amounting to at least three 4
quarter of million dollars a year.
He says: IA very striking result
OF the investigation has been that.
shortly after the discovery Of these
secret rates by the commissioner, a
major petition of them were promptly
corrected by the railroads 50 that most
Pof Oh, them now have been- dossz.
May Prosecute.
The statement Is added that the de.
partment Of Justice will take up the
question of the Institution Of prosecu.
t1ons in at least certain of the cases.
and hope is expressed that congress
VIII enact into law the bill OF Sena-
tor Knox to correct the Interpretation
OF the immunity provision rendered In
Judge Humphreys decision. The
President declares that other corpo.
rations besides the Standard OIL pro.
flied by the rate determinations, and
mentions the sugar trust as one that
rarely pays lawful rate for transpor-
Standard Controls Output.
In his report Commissioner Gar.
field finds that the output OF refined
oil amounts to 2s,000,00o barrels an
nually of which the Standard compn-
ny, directly and indirectly, controls
about 23000,000 and approximately the
same proportion Of other finished pro-
ducts of petroleum. Continuing. the
report says:
The Standard claims that the loca-
tion of Its reflneries and the use of Its
pipe lines are natural advantages to
which 1t is justly entitled. While In
a measure that is true, 1t must not be
forgotten that these advantages were
in part obtained by means Of unfair
competitive methods, after years Of
fierce Industrial strife"
4 The development of the pipe line sys-
I, tenn by the Standard was the result Of
! special agreements with the railroad
companies. Furthermore, these so.
called natural advantages have been
and are being greatly increased by dis
ordinations in freight rates, which
give the Standard Oil company mo.
nopolistic control of the greater por.
ton Of the country.
Exorbtant Profits.
The immediate result of this delim.
ination is shown by the exorbitant
, profits obtained In the non-competi-
saved to the Standard three-quarters
JOI u lullllOu tuo
difference between open rates and tho
rates actually paid
The report gives number of In
stances Of determinations in rates, one
by the Pennsylvania railroad which
made the Standard a rate of 8 cents.
while the rate to independent refn-
cries was 38 cents. Several similar
cases on other railroads are cited.
"These determinations" Commits.
sioner Garfield says, have been 80
long continued, SO secret, SO ingeni-
ously applied to new conditions in
: trade, and SO large in amount as to
make it certain they were due to con.
: certed action by the Standard and the
railroads"
: After calling attention to the good
, which already has resulted from the
investigation Commissioners GARFIELD
says the changes effected have put
the independent companies upon 9
fairer footing, and made competition
possible in territories therefore, mac
!, cessible.
The report concl ,des:
Nevertheless, y1despread discrim'
nations in open ra rs are still In force
and leave the INDEPENDENTS at serious
disadvantage.
aThe investigation has shown very
clearly one glarins ffect IN the inter
i lcontinu Page 81