The Montgomery advertiser., 1906-05-05
.Scathing Arraignment of the Trust.
BASED ON GARFIELD's REPORT
H. H. Rogers Takes Up Cudgels for
 Rockefeller Syndicate.
RidicuIes Some of the ststement. of the President and the Commits sioner and Says He is
 for Law.

Washington, D. C.. May 4.--President message to Congress relating to the oil industry. based upon the report recently made by Commissioner Gar field:
 The Senate and House of Representa-
 transmit herewith a report by the Commissioner of the Bureau Of Cor porations in the Department of Com merce and Labor on the subject of transportation and freight rates in con nection with the oil industry. The in- are summarized in this report. was nn- dertaken in accordance with House Resolution 4ss. passed February IS. 1905, but for the reasons given in the extensive than was called for in the resolution itself
 call your especial attention to the letter Of transmittal accompanying and summarizing the report; for the report IS or capital importance view of Inc effort now being made to secure sucn enlargement of the powers of the VIII confer upon the Commission power m some measure adequately to meet the clearly demonstrated needs of the situation. The facts set forth In this report are for the most part not dis- puted. It is only the inferencss from them that are disputed. and even in this respect the dispute is practically limited to the question as to whether the transactions are or are not technf- ealiy legal The report shows that the Standard oil Company has benfited enormously up almost fo the present mos secret rates being clearly unlawful This benefit amounts to at least three- quarters of a million year. This the profits that % the seansard Dn d com pany obtains at the expense of the railroads; but of course the ultimate result is that 1t obtains a much larger profit at the expense of the public.
 A very striking result of the fnves- tigation has been that shortly after the discovery of these secret rates by the portion of them were promptly cor cor Sected by the railroads. so that most of them have now been done away with. This immediate correction, par eret rates is Of course on the one hand an acknowled@enaent thar they were wrong. and yet were persevered a proof of the eficiency of the work that has been done by the Bureau of Corporations.
 The Department of Justice will take up the question of instituting prose- cutions in at least certain of the cases. But 1t is most desirable to enact into law the bill introduced by Senator Knox tbs to correct the interpretsation Of
 
 Judge Humphreys decision. The hands of the government have been greatly strengthened in securing an effective Supreme Court in the case instituted by the government against the tobacco trust. which decision permits the gov ernment to examine the books and records of any corporation engaged in Interstate commerce.; and by tho recent conviction and punishment of the Chicago. Burlington and Quincy Railroad and certain of It's officers.
 Profits of the Standard.
 But in addition to these secret rates the Standard Oil profits immensely by open rates. which are so arranged as to give 1t m overwhelming advantage over It's independent competitors. The refusal of the railroads in certain cases to prorate produces analogous effects. Thus in New England the refusal Of resulted in keeping the Standard oil in absolute monopo1istic control of the field, enabling 1t to charge from three to four hundred thousand dollars year more to the consumers of oil in New England than they would have had to pay had the price paid been that obtaining in the competitive fields. This is q characteristic example of tho numerous evils which are Inevitable under a system in which the big ship per and the railroad are left free to crush out all individual initiative and all power of independent action be- cause of the absence of adequate and thorough going governmental control. Exactly similar conditions obtain in q large part of the West and Southwest. This particular instance exemplifies the fact that the granting to the gov- ernment of the power to substitute a proper for an improper rate Is In very many instances the only effective way in which to prevent improper dlscriml- nations in rates
 It is not possible to put into figures the exact amount by which the Stand ard fhFnnCh inc fQVnr- itism shown 1t by the railroads in con- nection with the open rates. The profit of course comes not merely by and (even without references to these higher priees) by the complete con trol of the market which It secures. getting the profit on the whole way by which the diseriminations can be cured is by conferring upon the Interstate Commerce Commission the power to take quick and effective ac- ton in regulating the rates.
 One feature of the report which is worthy of attention Is the showing made as to the way in which commerce what is in reality merely n part of interstate commerce, It IS clearly shown, for instance, that this device is employed on the New York other railroads, in such fashion as to amount to thwarting the purpose Of the law, althouEh the IormS or the aw may be compiled with.
 It is unfortunately not true. that the .andard oil Company is the only great corporation which in the inme- Hate past has benefited. and is at this moment benefitlng in wholly improper fashion by an elaborate series of rate which permit 1t to profit both at the expense of its rivals md of the general public. The At torney General reports to me that the now going on as to the shipments by the sugar trust over the trunk lines running out of New York ,ity tends to show that the sugar trust rarely if ever pays the lawful rate for and Is thus improperly, ma probably unlawfully. favored at Inc expense of its competitors and of .he general public.
 The argument is sometimes advanced against conferring upon some govern mental body the power of supervision and control over interstate commerce, nat to do so tends to weaken indi- yiduai initiative. Investigations such as his conclusively disprove any such al- eRation On the contrary, the proper play for individual initiative can only oe secured by such governmental sue oervision as will curb those monopoIies