New-York tribune., 1906-05-05

report are for the most part not disputed Il
is only the inferences from them that are DIS
puted and even in this respect the dispute Is
practically limited to the question as TO whether
se transactions are or are not technically legal
The report shows that the Standard Oh Com
nanv has benefited enormously up almost 70 the
present moment by secret rates. many or these
secret rates being clearly unlawful. This benefit
amounts 10 at least three-quarters OF million
= wear This three-quarters OF a million repre-
sents the profit that the Standard OIL Company
obtains at the expense Of the railroads; but Of
course the ultimate result is that It obtains a
mach larger profit at the expense OF the public
A very striking result Of the investigation has
been that shortly after the discovery or these
secret rates by the Commissioner OF Corpora
lions the major portion OF them were promptly
corrected by the railroads. so that most Of them
have now been done away with. This imme-
diate correction partial or complete, Of the evil
Of the secret rates is of course on the one hand
an acknowledgment that they were wrong, and
vet were persevered in until exposed; and on
the other hand a proof of the efficiency OF the
work that has been done by the Bureau Of Cor
norations The Department Of Justice win take
up the question of insttuting prosecutions In
at least certain OF the cases But it is most
desirable TO enact into law the bill introduced
the immunity provision rendered in Judge
Humphreys decision The hands OF the govern
ment have been greatly strengthened in secur-
ing an effective remedy by the recent decision
Of the Supreme Court in the case instituted by
the government against the Tobacco Trust,
which. decision permits the government to eX-
anime the books and records of any corporation
engaged in insterstate commerce.; and By the
recent conviction and punishment Of the Chi
cago, Burlington & Quincy Railroad and certain
Of its officers.
OPEN RATE. ADVANTAGES.
But IN addition TO these secret rates. the Stan
dard OIL profits immensely by open rates, which
are so arranged as to give il an overwhelming
advantage over its independent competitors. The
refusal Of the railroads in certain cases to pro-
Fate produces analogous effects Thus in New
England the refusal OF certain railway systems
10 prorate has resulted in keeping the Standard
oil ia absolute nnonopolistic control Of the field,
enabling II 70 charge from 100000 20 $4O0,O00a
year more TO the consumers OF oil in New Eng
land than they would have had to pay had the
price paid been that obtaining in the competi-
tive fields. This is a characteristic example Of
the numerous evils which are inevitable under
q system IN which the big shipper and the rail-
road are left free 10 crush out all individual
Initiative and ali power Of independent action
because Of the absence of adequate and thor
oughg0ing governmental control Exactly SINH
lar conditions obtain in a large part Of the West
and Southwest This particular instance eX-
enplifes the fact that the granting TO the gov
ernmenL Of the power to substitute q proper
for an improper rate is In very many instances
the only effective way In which to prevent i'm
proper determinations in rates.
It IS not possible to put into figures the exact
amount by which the Standard profits through
the gross faTOritism shown II by the railroads
IN connection with the open rates. The profit, Of
course, comes not merely by the saving in the
rate Itself as compared with its competitors, but
by The higher prices it is able to charge, and
feven without reference TO these higher pTices)
by the complete control Of the market which it
secures, thereby getting the profit on the whole
consumption. Here again, the only way by
which the determinations can be cured IS by
conferTing upon the Intersts te Commerce Com
mission the power n take quick and effective
action IN regulating the rates
One feature Of the report which is especially
worthy OF attention IS the showing made TO
the way IN which the law is evaded by treating
as state commerce what is IN reality merely q
part Of interstate commerce. It IS clearly shown,
for instance that this device is employed on the
New York Central Railroad as well as on many
other railroads, in such fashion to amount to
thwarting the purpose OF the law, although the
1oTlns Of the law may be complied with.