Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1906-05-04
President Makes Public
Report of Garfield
Investigations
AND ADDS COMMENT
Numerous Cases of Discrimi-
nation and Rebatlng Dis
covered.

Washington, d. c., May 4.-President
Roosevelt today transmitted to con-
gress the report of James R. Garfield,
commissioner of corporations, giving
the results of his investigation on the
subject of transportation and freight
rates in connection with the oil indus
try.
OF Capital Importance.
In the message the president eX-
presses the view that the report IS OF
capital Importance because of the ef-
fort now being made TO secure such an
enlargement of powers of the inter
state commerce commission as Will
confer upon the commission power in
some measure adequate to meet the
clearly demonstrated needs of the stu
alton. That the Standard Oil company
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 three-quarters of
a million year. He says:
Quit When Discovered.
"A very striking result of the inves-
tigation has been that shortly after
the discovery of these secret rates by
the commissioner the major portion of
them were promptly corrected by the
railroads, so that most of them have
now been done away with
Promises TO Prosecute.
The statement is added the depart
ment of justice will take up the ques-
ton Of irstituting prosecutions in at
least certain of the cases, and the hope
expressed congress will enact into law
the two bills of Senator Knox to cor
rect the Interpretation of the im:nuni-
ty provision rendered in Judge Hum
phrey's decision. The president de-
clares other corporations besides the
Standard Oil profit by rate discrimina
tions, and mentions the sugar trust as
one that rarely pays a lawful rate for
transportation.
Garfield Reports Monopoly.
In his report Garfield finds that the
output of refined OIL amounts TO 25,-
OOO, 900 barrels annually of which the
Standard company directly and indi-
rectly controls about 23.000,00O, and
approximately the same proportion of
other finished products of petroleum.
Continuing, the report says:
''The Standard claims the location of
its refineries and use of pipe lines are
natural advantages to which it is just
" entitled. While in measure that
is true. it must not be forgotten these
advantages were in part obtained by
dc
after years of, fierce industrial strife"
Have Special Agreements.
The development of the pipe line
system by the Standard was the result
of special agreements with railroad
companies. Furthermore, those So
called natural advantages have been
and are being greatly increased by
determinations in freight rates, which
give the Standard monopolistic control
over the greater portion of the coun-
try. The immediate result of this linn
itation is shown by exorbitant profits
obtained in a non-competitive field. In
1904 secret rates saved to the Stand |
ard three-quarters of million dollars,
the difference between
open rates and rates actually paid.
Understanding Plain.
"These determinations" he says, !
"been so long continued, so secret, so
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
railroads"
After calling attention to the good
which already has resulted from the
Garfield says the chang
es effected have put the Independents
upon a fairer footing and make compe-
tition possible in territories heretofore
The report concludes:
Much still to BE Remedied.
Nevertheless, the widespread dis
elimination in open rates still in force
leave the independents at a serious
disadvantage Investigation has shown
very clearly glaring defects in the in
commerce law, viz, the meth
cd of filing and published tariffs"
Instances Numerous.
Explaining more in detail the results
of his investigation. Garfield says:
1.-The general result of the investiga-
tion has been to disclose the existence
of numerous and fragrant discrimina-
tions by railroads in behalf OF the