The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1906-05-10
President Roosevelt and Com
missioner Garfield Make
Exposures.
PROSECUTIONS ASSURED
Determinations and Monopoly
Have Been Given Rock
efelier Interests.
soNGREssMEN APPLAUD
republicans and Democrats in House
Show Enthusiastic Approval--Gen-
eraI Counsel for Trust Indis-
nantiy Denies Charges.

Chicago, May 7.-one of the most
thorough inquiries into the rela-
tionship between the railroads and
the Standard Oil company that
eve has been conducted by the
government will commence in
Chicago, May 10, before the Inter-
state Commerce commission. SPe-
eial Counsel M]arshand, Of the
tho preliminary arrangements.
Washington, May disclosures Of
the most sensational character are
made touching the giant conspiracy ex-
listing between the railroads OF the
pany, in a special message sent to
congressstoday by President Roosevelt.
With the message is the report Of
Commissioner Of Corporations Gar
field, whose investigation of the meth
DDS Of the oil trust has apparently
been very thorough.
That immediate steps will be taken
looking to the prosecution of officers
of the oil trust is intimated strongly
by the president and clearly indicated
by the sending Of a special commits
s1oner to Chicago to arrange for a fur
Their searching investigation Of rail-
road-Standard Oil utilization.
congressman Applaud.
Scarcely less sensational than the
message itself was it's reception in the
house of representatives where it's read
ing provoked a demonstration Of a most
unusual nature. Republicans and DEM
ocrats alike applauded with great en-
thuSiasm showing hearty approval Of
the sentiments expressed by the presi-
dent. In the senate it was rather sor-
roWfully received, although it was clear
| ffC 10 yrn iror0tf 1ync aDrr1,,.4-l
That by securing a monopoly Of the
oil business, through the crushing Of
competition mad possible by the grant
ing Of favors by the railroads., the
Standard Oil company has grown to be
the most powerful corporation in the
country, is shown by the report Of
Commissioner Garfield. Secret and open
rebates have brought to the Standard
enormous profits. The report y
These determinations have been so
long continued, so secret, SO ingeni-
ously applied to new conditions Of
trade, and SO large in amount as to
make it certain they were due to con-
certed action by the Standard and the
railroads."
OF Capital Importance.
In his message the president expresses
the view that the report is Of capital I'M
portance because of the effort now being
made to secure such enlargement of the
powers Oh inc interstate commerce COM
mission as will confer upon the commits
sion power in some measure adequate to
meet the clearly demonstrated needs of
the situation. The facts set forth in the
report, he declares, are for the most part
not disputed. That the Standard Oil COM
pany has benefited enormously 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 $4,000 a year. On this subject
he says:
This $4,000 represents 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 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 commissioner
OF corporations the major portion of them
were promptly corrected by the railroads.
so that most Of them have now been done
away with. This immediate 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 yet were perscvered in until exposed :
and on the other hand a proof OF the
efficiency of the work that has been done
by the bureau OF corporations"
Prosecutions Assured.
liz statement Is aIueu llat the Depart
nent Of justice will take up the question
of instituting prosecutions in at least GER
tain of the cases, and the hope is ex-
pressed that congress will enact into law
the bill Of Senator Knox to correct tho in
depreciation Of the immunity provision
rendered IN Judge Humphreys decision.
Continuing, the president says:
But in addition to these secret rates the
Standard Oil profits immensely by open
rates, which are Sc arranged as to give
1t an overwhelming advantage over its
Independent competitors. This is a char
acteristic example of the numerous evils
which are inevitable under a system In
which the big shipper and the railroad are
left free to crush out all individual initia-
tive and all power of independent action
because Of the absence of adequate and
thorough-going governmental control.
Exactly similar conditions obtain in a
large part of the west and southwest"
1t Is not possible, he says, to put into
figures tho exact amount by which the
Standard profits through the gross favor
itism shown 1t by the railroads in connec-
ton with the open rates. The profit Of
course comes not merly by the saving in
the rate itself as compared with its com
p%etitors, but by the higher prices it is able
to charge and by the complete control of
the market which it secures. thereby get
ting the profit on the whole consumption
Juggling OF Rates.
The president calls attention to that
feature of the report regarding the man.
ner in which the law is evaded by treating
as state what in reality IS mere
" 4 part OF interstate commerce.. He saws
it is clearly shown that this device is en-
ployed on the. New York Central railroad
as we'll as on many other railroads. In
such fashion as to amount to thwartine
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 benefited and is
benefittlng In wholly improper fashion b,
an elaborate series of rate tions
The sugar trust, he adds, according to the
results of the investigation now In pro
CrnSS "a rnlN Il crer nnI.s lbn lan,f,.l rnt.