The Aberdeen Democrat. (Aberdeen, South Dakota) 1???-1909, 1906-05-11
PRESIDENT TRANSMITS COMMITS.
sIoNER eARFlELD's REPORT
TO CONGRESS.
Results Of Investigation Of Transport
tation and Freight Rates Show the
Octopus Has Benefited Enormously
by Secret Rates-Department Of
Justice VIII Institute Prosecutions
In Certain Cases. .s...s.

Washington, May s. President
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 impor-
tance because of the effort now being
made to secure such enlargement of
the scope Of the interstate commerce
commission as will confer upon 1t
power to meet the demonstrated needs
of the situation. The facts in the re-
port, he declares, are for the most
part not disputed. That the Standard
Oil company has benefited enormous
ly 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 year. On this subject he
says:
"This $750,000 represents the profit
that the Standard Oil company OBJ
tains 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
Bionsr 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 acknowledgement that
they were wrong and vet were perse-
vered in until exposed" !"
viii Institute Prosecutions. Y.
The statement Is added that the de.
partment Of justice will take up. the
question of instituting prosecutions in
ut least certain Of the cases and the
hope is expressed that congress will
enact into law the bill IT Senator Knox
to correct the construction Of the I'm
munity provision rendered in Judge
Humphreys decision. Continuing, the
president says: 81.
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 Its Independent
competitors. This is a Characteristic
example of the numerous evils which
are inevitable under asystem III which
the big shippers and the railroads are
left free to crush out all individual
initiative and all power Of independe
action because Of the absence Of ade-
quate and thorough going govern.
mental control. Exactly similar condi.
tions obtain in a large part OF the
West and Southwest 81
1t 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
itself as conn with its com.
petitors, but by the higher prices 1t Isl
able to charge and by complete con.
troll of the market which it secures,
thereby getting the profit on the
Wiioie cunsumprio s.
Purpose of the Law T1warted.
The president calls attention to that
feature OF the report regarding the
manner in which the law Is eYaded by