Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1906-05-11
PRESIDENT TRANSMITS COMMITS
eioNER oARFlELD's REPORT
TO CONGRESS.
Rosuits Of Investigation Of Transpor
tation and Freight Rates Show the
Octopus Has Benefited Enormously
by Secret Rates-Department Of
Justice Will institute Prosecutions
In Certain Cases.


Roosevelt has transmitted to congress
the report of James R. Garfield, COM
missioner of corporations, giving the
results Of his Investigation Of trans
portation and freight rates in connec-
ton with the oil industry.
The president expresses the view
that the report is of capital 1mpor-
lance because Of the effort now being
made to secure such enlargement OF
the scope of the interstate commerce
commission as will confer upon It
power to meet the demonstrated needs
Of the situation The facts In the 70.
port, he declares. are for the most
part not disputed. That the Standard
Oh company has benefited enormous
~ up almost to the present moment
by secret rates, many of which were
clearly unlawful. the president says
the report clearly shows, the benefit
thereby secured amounting to at least
$750.000 a year. On this subject he
says:
'This $4,000 represents the profit
that the Standard Oil company OBJ
ta1ns at the expense of the railroads:
but of course the ultimate result is
that it obtains much larger profit at
the expense of the public A very
striking result of the investigation has
been that shortly after the discovery
OF these secret rates by the commits
sioner Of corporations the major por
ton Of them were promptly corrected
by the railroads, so that most of them
have now been done away with. This
immediate correction, partial or COM
plete, of the evil of the secret rates, is
of course an acknowledgment that
they were wrong and yet were perse-
vered in until exposed"
Will Institute Prosecutions.
The statement is added that the de-
partment of justice will take up the
question of 1nstituting prosecutions in
at least certain Of the cases and the
hope is expressed that congress will
enact into law the bill Of Senator Knox
to correct the construction of the i'm
muntty provision rendered in Judge
Humphreys decision. Continuing, the
president says:
But In addition to these secret
rates the Standard Oil profits i'm
mensely by open rates, which are so
arranged as to give it an overwhelm-
Ing advantage over it's independent
competitors. This Is a characteristic
example of the numerous evils which
are inevitable under a system in which
the big shippers and the railroads are
left free to crush out all individual
initiative and all power of independent
action because Of the absence of ade-
Quate and thorough going govern
mental control. Exactly similar condi-
tons obtain In large part of the
West and Southwest
It Is not possible, he says, to put
into figures the exact amount by
which the Standard profits through the
gross favoritism shown it by the rail-
roads in connection with the open
rates. THE profit Of course comes
not merely by the saving in the rate
ASoSAA co SoAApc@1 GU WILL 1tS COAA-
petitors, but by the higher prices it is
able to charge and by complete con-
troll Of the market which it secures,
thereby getting the profit on the
whole consumption.
Purpose Of the Law 1hwarted.
The president calls attention to that
feature OF the report regarding the
manner in which the law is evaded by
treating as state commerce what in
reality is merely a part Of interstate
commerce. He says it is clearly
shown that this device is employed
on the New York Central railroad, as
well as on many other railroads, in
such fashion as to amount to thwart-
Ing the purpose of the law, although
the forms of the law may be complied
WITH
1t is unfortunately not true, he
says, that the Standard Oil company is
the only corporation which has bene-
dtted and is beneftting in wholly i'm
70 oh&4v hxr al