Y
' ; ' ' ' '
VOL. XLVI. 0. 14,167.
PORTLAND, OREGON, SATURDAY, MAY 5, 1906.
PRICE FIVE CENTS.
IS
E
E
President Tells What
Garfield Found.
PAMPERED PET OF RAILROADS
Huge Monopoly Built Up on
Violation of Law.
PROSECUTION TO FOLLOW
Garfield Tells Many Devices by
Which Monopoly Crushed Com
petition Defects In Law
to Be Removed.
WASHINGTON, May 4. President
Roosevelt today transmitted to Con.
Kress the report of James R. Garfield,
Commissioner of Corporations, giving
the results of his Investigation of the
subject of transportation and freight
rates in connection with the oil in
dustry. In his 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
enlargement of the powers of the In
terstate Commerce Commission as will
confer upon the Commission power in
some measure adequate to meet the
cleiirly demonstrated needs of the sit
uation. The facts set forth In the report, he
declares, are for the most part not dis
puted. That the Standard Oil Company lias
benefited enormously up almost to the
present moment by secret rates, many
nf which were clearly unlawful, the
Presidtnt says the report clearly
shows, the benefit ther vy s. fired
amouc tlnv . to t least ti.re-j iarfflr.i
h. million d jh ? a yar. On this
subject, he say :
All Taken From People.
"This 1750,090 represents the profits
that the Standard Oil Company ob
tains 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 Inves
tigation has been that shortly after
the discovery of these secret rates by
the Commissioner of Corporations, the
major ptrt 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
acknowledgement that they' were
wrong and yet were persevered in un
til exposed, and, on the other hand, a
proof of the efficiency of the work
that has been done by the Bureau of
Corporations."
Prosecution Without Immunity.
The statement Is added that the De
partment of Justice will take up the
auestton of instituting prosecutions in
st least certain of the cases, and the
hope Is expressed that Congress will
enact into law the bill of Senator
Knox to correct the Interpretation of
the Immunity proviHlon rendered in
Judge Humphrey s decision. Continu
ing, the President says:
Hut In addition to theso secret rates
the Standard Oil Company profits Im
mensely by open rates, which are so
arranged as to give it an overwhelm
ing advantage, over Its Independent
competitors.
Combine to Crush Competition.
This Is a characteristic example of
the numerous evils which are Inevita
ble under a system In which the big
shipper and the railroad are left free
to crush out all Individual , initiative
and all power of Independent action,
because of the absence of adequate
and thorough general governmental
control.
"Exactly similar conditions obtain
tn a large part of the West and South
west." 'It Is not possible to put Into figures the
exact amount by which the Standard Oil
' profits through the gross favoritism
shown It by the railroads In connection
with the open rates. The profit, of course,
conies not merely by the saving "in the
rate Itself as compared with Its compet
itors, but by the higher prices It Is able to
charge and by the complete control of
the market which It secures, thereby
getting tne profit on the whole con
sumption." Kvade Law In Making Rates.
The President calls attention to that
feature of the report regarding the
manner In which the. law is evaded
by treating aa state commerce what
in reality Is merely a part of Inter
state commerce. He says It is clearly
shown:
"That this device la employed on
the New York Central Railroad, as
well as on many other railroads. In
such fashion as to amount to thwart
ing the purpose of the law although
the forms of the law may be complied
with."
It Is unfortunately not true, he says,
that the Standard Oil Company is the
only corporation which has benefited
and Is benefiting in wholly Improper
fashion by an elaborate series of rate
discriminations.
0
LI
lngr to the results of the investigation
now in progress, rarely if ever pays
the lawful rate for transportation.
He declares that In the effort to pre
vent the railroads from uniting for
improper purposes, "we have very un
wisely prohibited them from uniting
for proper purposes; that is, for pur
poses of protecting' themselves and
the general public as against the
power of the great corporations."
He favors as an element of competi
tion the passage of some such law as
that which has already passed the
House, puffing alcohol used in the
arts and manufactures on the free
list and keeping the fee to oil and
coal lands of the Indian tribes or on
the public domain In the Government,
the lands to be leased only on such
terms and for auch periods aa will
enable the Government to entirely
control them.
GARFIELD EXPOSES CRIMES
Standard and Railroads Combine to
Crush Oat Competition.
In summarizing his report to President
RooBevelt, Commissioner Garfield speaks
of his personal visit to the oil fields and
of the great mass of data obtained by him
either personally or through agents of
the Bureau of Corporations.
The preliminary study of this was trans
portation, which enters so largely Into the
cost of the finished product and hence
a most Important factor in competition.
Taking up the subject of the output of
refined oil. Mr. Garfield finds, that It
amounts to about 26,000,000 barrels annual
ly, of which the Standard Oil Company
directly- and indirectly controls about
23,000,000 barrels, and approximately the
same proportion of the other finished prod
ucts of petroleum. Continuing, the report
says:
"The Standard claims that the location
of its refineries and the use of pipe lines
are natural advantages to which it is
Justly entitied by reason of the energy
and foresight of its managers.
Gained Advantage Unfairly.
"While In a measure this is true, it must
not be forgotten that these advantages
were in part obtained by means of unfair
competitive methods after years of fierce
Industrial strife.
"The development of the pipe-line sys
tem by the Standard Oil Company wajs the
result of special agreements with railroad
companies.
"Furthermore, those so-called natural
advantages have been and are being great
ly increased by discriminations in freight
rates, both published and secret, Interstate
and state, which give the Standard OH
monopolistic control in the greater portion
of the country, and which so limit com
petition as practically to prevent the ex
tension of the business of any Independent
In a point which vm; remotely endangers
the supremacv of the Standard Oil.
Exorbitant Price of Oil.
"An Immediate result of this elimina
tion of the competitive area is shown by
the prices of ordinary illuminating oil
throughout the country.
"After deducting the freight rate, the
price of such oil is usually from I cents
to 5 cents a gallon higher in the non
competitive than In the competitive fields.
"A reasonable profit on refined oil is
about H cent a gallon. It Is clear that
exorbitant profits are obtained In the non
competitive fields.
This monopolistic control extends from
the well of the producer to the doorstep
of tho consumer."
Mr. Garfield cites the fact that the New
York Central Railroad Company refused
for Itself and affiliated lines to give access
to records, of state rates.
Facts Prove Discrimination.
At the beginning of the investigation, he
says, the Standard Oil Company denied
that it had obtained in recent years or
was now obtaining any rebate or other
transportation discrimination as against
its competitors, and yet he says that a
most careful review of the facts and the
explanations lead up to the conclusion
that -the Standard Oil Company has habit
ually received from the railroads and is
now receiving secret rates and other un
just and Illegal discriminations.
"In 1904 these rates saved to the Stand
ard OH Company 1750.000. representing the
difference between the open rates and the
rates actually paid.
"These discriminations have been so long
(Concluded on Pafe 7.)
FACTS FOUND BY GARFIELD.
Railroad discrimination in rates gives Standard Oil Company monopoly
In greater part of country and limits extension of independent trade.
Price of refined oil Is 2 to 6 cents a gallon higher in non-eompetittver
than competitive fields. Reasonable profit is half a cent a gallon.
. . Discrimination takes these forms:. ". ..
Secret and semi-secret rates.
In open arrangement of rates.
In classification and rules of shipment.
In treatment of private tank cars.
Secret rates apply often on rates wtthin single states.
Secret rates are concealed by blind billing, whereby rates are not on
freight bill, but are collected from central office and concealed from local
agent.
Largest number of secret rates and rebates In California, more than 80
being discovered there.
Multitude of discriminations possible in local rates on less than car
load lots.
Standard Oil has had important voice in construction of open rates to
give it unfair advantage:
On Pacific Coast all refineries receive S-10 cent per mile on loaded move
ment under 800 miles, i cent per mile over that distance, but Standard Oil
cars receive cent on all loaded and empty cars.
Similar discrimination Is practiced on transcontinental railroads in
Northwest. . . '
Interstate and state rates are so combined as to favor Standard.
Some of the discriminations were no sooner discovered than the guilty
railroads corrected them. '. '
Standard Oil, through pipe lines and oil steamers. Is competitor of rail
roads, and natural policy of railroads would be to favor small refiners.
This policy has been pursued regarding other freight, but reversed regard
ing oil.
Yearly output of refined oil is 26,000,000 barrels, of which Standard Oil
produces 23.000,000.
Standard Oil denies receiving discrimination, but facts show it directly
gained J75O.0OO in 1904 by this means and vastly more indirectly.
Defects in Interstate law regarding filing and publication of tariffs
enable railroads to make secret rates.
All state rates should be filed with Interstate Commission, tariffs sim
plified and method of posting and filing them changed.
WHAT THE P RES IT) E X T PROPOSES.
Department of Justice will take up prosecutions.
That law be amended to deny immunity to guilty individuals.
That alcohol used in arts and manufactures. be put on free list.
That title to oil 'and coal land of Indians and on public domain be kept
in Government, and that such land be leased and kept under Government
control.
VIGOROUS REPLY
OF
Denies Garfield's
Charges on All Points.
GALLED MAN WITH MUCKRAKE
Flings Sarcasm at Roosevelt's
Many Opinions.
ALWAYS OBSERVES LAW
Rogers and Archbold Claim Natural
Advantages and Good Judgment
Built Up Business Xo Re
bates or Secret Rates.
NEW YORK, May 4. In reply to Pres
ident Roosevelt's message and the re
port of Commissioner Garfield, H. H.
Rogers and John D. Archbold, of the
Standard Oil Company, said that their
examination of the message and report
necessarily had been hurried, and that
they should at a later date make a full
answer to their shareholders. Mean
while they made the following state
ment to the Associated Press:
"In the President's effort to secure the
passage of a bill enlarging the powers of
the Interstate Commerce Commission
and Just and equitable railway rates, we
have precisely the same interest that
any good citizen has; no more and no
less. Regarding his criticisms upon the
management of the railways. or his
strictures upon any acts of the Inter
state Commerce Commission we have
neither responsibility nor concern.
Objects to Being Object Wesson.
When, however, he or Commissioner
Garfield attacks the Standard Oil Com
pany and uses its methods of doing busl
sn ib?"ct-leason for the purpose
of r.-u "tii!!r his views, w protest. It
may "oe"rankly stated at the outset that
tl Btanard Oil Company has at all times
within the limits of fairness and with
due regard to the law sought to secure
the moat advantageous freight rates and
routes possible. There will be no denial
of this fact on our part. The question
is whether we have at any point violated
the law or the proprieties.
"The present inquiry grew out of a
resolution adopted by Congress a. year
ago on motion of Mr. Campbell of Kan
sas, instructing the Secretary of Com
merce and Labor to investigate the oil
business as carried on In this country.
We welcomed the investigation. When
Commissioner Garfield, in the discharge
of his duty, visited our offices, his experts
were given free access to our books and
the fullest opportunity to ascertain the
manner In which our business was con
ducted. Frank disclosures of all our
methods were made and every criticism
offered by him was met with a candid
and painstaking answer.
"So conscious were we of our recti
tude that we repeatedly importuned Mr.
Garfield to make public the conditions
existing in Kansas, but he refused. We
proposed ourselves to answer some of the
unfair criticisms upon the subject, but
refrained on Mr.- Garfield's advice and
on his assurance that his report would
present the case fairly. It turned out
that, so far as Kansas was concerned,
the state authorities abandoned their at
tack. Slaps at President. 1
"One does not care to bandy words
with the President of the United States.
STANDARD
It is not easy to differentiate between
Mr. Roosevelt, the President and Mr.
Roosevelt, the Individual. He has given
of his advice most generously on every
subject from the size of our families to
the mistakes of Federal Judges, . and
some error Is inevitable now and then
to" the most conservative man under such
circumstances.
"We say flatly that any statement that
the Standard Oil Company has or is now
knowingly engaged in practices which
are unlawful is untruthful and .unjust.
"The Commissioner's report, upon
which the President's message is based,
opens with the statement that the manu
facture of refined oil in this country is
about 26.0p0.000 barrels annually. It ' Is
unimportant, but it would nevertheless
have been fair for him to have stated
that .over 15.000,000 of barrels of this an
nual manufacture is exported, and with
its manufacture or price the American
public Is not concerned.
James R. Garfield. Commissioner of
Corporations.
Standard's Natural Advantages.
"He next calte attention to the fact
that the Standard Oil refineries are lo
cated at centers of distribution, while
the independent refineries are usually in
the crude oilfields. This fact, if borne
steadily in mind, will answer very many
of Oie criticisms which he later indulges
in. He charges that this location of re
fineries and the natural advantages fol
lowing it were obtained by means of un-
(Concluded on Page 7.)
CONTENTS TODAY'S .PAPER
dc-; mi jlmuin temperature, 4t 5eg Pre
cipitation, nor.e.
TOD A T'S Fa lr and warmer ; northriy
winds.
Sim Francisco.
Management of city restored to municipal
officials. Page 4.
Bankers declare charity not needed In re
building Page -4.
Greely takes stock of food and city pre
pares to employ idle. Page .
Oregon relief bureau will transfer work; to
other officials. Page 5.
Came of earthquake discovered in splitting
of mountains. Page 3.
National.
Garfield's report, on Standard Oil accuses it
and railroads of rebating and wholesale
discrimination and President prepares to
prosecute. Page 1.
Standard Oil and railroad deny chara-es
and attack Roosevelt and Garfield.
Page 1.
Indictments for rebatjpg against sugar trust
and railroads. Page 3.
Republican factions agree on court review
amendment to rate bill. Page 1.
Senate makes rate bill apply to sell pipe
lines. Page 2.
Hoae committee kills bill abolishing land
. office receivers. Page 2.
Foreign.
Britain sends ultimatum and fleet to Turkey
and other powers support her. Page 5.
Russian Democrats hold convention and pre
pare platform. Page, 5.
New Cabinet claims to he liberal and de
nonnces Wltte as oppressor. Page-5.
Cxar in panic over what Parliament may do.
Page 5. -
Russian anarchist found dead near Paris.
Page 5.
Domeitie. - '
What t'nele ?am ha done in City of
Panama. Page S.
Senator Heyburn's illness becomes more serl
out.. Page . J
Terrible trainwreck in Pennsylvania. Page 5.
Anthracite miners leave -co m m 1 1 Lee to
decide on strike. JPssre 5.
Sport.
Commuters defeat the Beavers.' Page 12.
Pacific Coast Baseball League will not dis
band la statement of M. Credle. Page 12.
Parlfki Coast.
Washington schorv' superintendents declaro
for direct primrry law at Walla Walla
convention. Page 6.
Boom lr Bevea DevHs mine started by
rumors of railroad building from Hunt
ington. Page 6.t .
Linn County finrfs- direct primary law an
expensive luxury Page 6.
Assailant, of Rainier. Or., editor and re
former caught at Kelso, Wash,; Is a
Portland thug. Page 6.
Oommcrriml and Marine.
Ungrounded fear on Puget Sound of butter
war. Page 11.
Fluctuations Ir whfiit at Chicago. Page 17.
Stock market igains all of Thursday's loss.
Page 17.
Steamer Homer chartered to take supplies
from Portland to Pribilof Islands.
Page 16.
Contracts for rock for Columbia Fiver jetty
may be awarded today. Paa ia.
Steamer Allianr- arrives from Eureka after
stormy voysge Page 1ft.
Portland and VMoJty.
Judge Frazer stts a commissioner in the
right of way dispute across the Peninsula
of the Hill and Harriman lines. Page 10.
Great enthusiasm manifested in the coming
"Made tn Oregon" E-tpositton. Page 10.
Republicans generally declare party ticket
- In a good one anfl predict success from
top to bottom. Page
Relief fund lacks but little more than $3000
of reaching quarter -of t million mark.
Page 11.
Employes of Portland Railway ask Increase
In wage scale. Page 18.
Record of a day in the Municipal Court.
Page 11.
New minimum on lumber shipments East
displeases local manufacturers. Page 10.
IXHils Blumaur. president Blumauer-Frank
Drug Company, dies at Hotel Portland.
' Page 11-
Ex-Congressman Robert Faker, of New
York, talks to Democrats "on municipal
ownership and comments on f30.000.000
merger in Portland. Page 18.
Executive Board orders prosecution of
Arlington Club and owner of Lazarus
building for violating law, and threatens
to close Front street. Page .1ft.
Infected trees in orchard at MUwaukie cut
PARTY IS UNITED
T
Factions' Agree on
. Allison Provision.
ACCEPTABLE TO ROOSEVELT
Recognizes Jurisdiction of the
Courts Over Rates.
BOTH SIDES CLAIM VICTORY
Republicans Will Pass Bill, Though
democrats Slay Pour In Broad
sides President Discusses
Agreement With Papers.
WASHINGTON-. May 4. (Special.)-The
lone fight over the railroad rate bill Is
ended and both extremes are claiming
the victory tonight. Senator Allison, of
Iowa, Is credited with being- the dove 'of
peace. His court review amendment has
solved the vexed problem. The Presi
dent and the Republican friends of the
Hepburn bill have accepted it and Sen
ator Aldrich and the so-called "conserva
tive" Senators have acquiesced. The
Senate adjourned over until Monday to
night under a protocol, for the purpose
of ratifying a full treaty and formally
winding up the whole controversy.
Both Sides Have Won..
."'President ; Roosevelt has won his
fight." is the Jubilant proclamation of the
friends of the administration.
"President Roosevelt has surrendered to
the conservatives' and Aldrich has won
his fight" Is the declaration of the op
ponents of the administration. But it is
all over at any rate unless something
entirely unforeseen occurs 'between now
and the time when voting on the amend
ments more or les important has run
its . perfunctory course, and that of itself
Is cause for universal gratification.
Satisfactory to Roosevelt.
"President Roosevelt believes that the
Allison amendment is perfectly straight,
regards it simply as stating In specific
terms just exactly what the framens of
the Hepburn bill intended to have pro
vided In that measure and, such being
the case, he naturally feels elated over
the triumph claimed by the supporters
of the administration.
On the other hand, It Is claimed, es
pecially by leaders among the Democrats,
that the Allison amendment provide? for
the very broadest kind of court review
and that it la a complete victory for
those who have been contending for that
principle.
Democrats Will Open Fire.
There will be some lively lo-minute
speeches when the court-review feature
comes up in the Senate, some time next
week, but the agreement reached by the
Republican Senators is not likely to be
shaken by the broadsides of Bailey and
other big guns, or the rapid-fire batteries
of Tillman.
The Democrats are much stirred up
over the prospect of a law that will go
through the Senate as a distinctively Re
publican measure.
President, Quite Satlsflod.
A brief review of the position President
Roosevelt has taken on the rate question
since the Hepburn bill saw the light of
day, and an analysis of the present sit
uation as it Is seen by the Administration-,'
will give The Orcgonlan readers the
t HENRY H. KOGKRS.
00
V
best means of judging of the soundness
of the claim that the President has won
a notable fight and added another feather
to the many that adorn his official cap
As stated. President Roosevelt regards
the Allison amendment as thoroughly ac
ceptable and one to which none of the ob
jections attaching to other proposed court
review amendments can be raised. From
the outset he has been entirely satisfied
with the Hepburn bill just as it stands
and he would be willing to take it that
way now. But he" is willing also, for the
sake of removing all chance of the pos
sible unconstitutionality of the act, to let
a provision declaring in specific terms
that the courts shall have Jurisdiction go
into it. - -
PRESIDENT STATES POSITION"
Satisfied AVitlt Allison's Amendment,
Though He Prefers Long's.
WASHIXGTOX, ' May 4. Thirty-six
members of the corps of Washington cor
respondents, " representing . the ' leading
dally newspapers and press associations In
tho United States, met' President Roose
velt by Invitation In the Cabinet room of
the executive offices this afternoon to
discuss with him the status of railroal
rate legislation and to learn, the Presi
dent's views as to certain pending amend
ments to the Hepburn bill. The meeting
lasted more than an hour. While the
President made it clear at the outset that
he desired not to be quoted directly as to
the views he might express, he said that
he waa perfectly willing that his views
should be known and stated in J he lan
guage of the members of the press who
were present.
The discussion dealt chiefly with the
various propositions for a court review,
from the broad amendment proposed by
Senator Bailey, of Texas, to the restrictid
amendment offered by Senator Ixng, of
Kansas. The President, in beginning, in
dicated clearly and positively that he
would be satisfied with the enactment of
the Hepburn bill as it was reported to
the Senate from the committee on inter
state commerce. He pointed out, how
ever, that some advocates of railroad-rate
legislation as sincere friends of the leg
islation as he- himself was believed it
would be wise so to amend the measure
as to provide specifically for a review of
the decisions of the Interstate Commerce
Commission by the courts.
To thi end, the proposition evolved by
Senator Allison, of Iowa, which now prac
tically has been agreed upon by the Re
publicans of the Senate, was offered, and
after consideration was accepted by the
friends of the measure, Including the
President. The President expressed the
opinion that the effect of the Allison prop
osition was embodied in the Hepburn bill,
but It Is also his opinion, as he stated it
today, that, if there is the slightest doubt
that the Hepburn bill, by Implication,
does not carry the effect of the Allison
proposition, it ought to be incorporated
explicitly in the measure before'-lts en
actment into law. Personally he favors
the narrower restriction of the amend
ment of Senator Long, but some other
advocates of the legislation do not favor
that amendment.
He made it clear that the Judgment of
the friends of the measure was so evenly
balanced on the question of the Long
amendment that it was scarcely worth
while to make a contest for it, as a year
or two of the law's operation would dem
onstrate clearly whether it would be nec
essary further to. amend the act in the
way proposed by Senator Long.
The President assured his hearers that
he and every advocate of tits pending
measure would be satisfied perfectly with
the Hepburn bill with the amendment
proposed by Senator Allison.
HAS TWO SETS OF HEIRS
Oregon Women Claim Interest In
Estate of Kentucky Millionaire.
LEXINGTON. Ky., May 4. (Special.)
R. B. Metcalfe, millionaire, who formerly
resided near Portland, Or., died -here re
cently, leaving a large estate. Mrs. Win
nie Heidtman and Mrs. Ella Gilliam, of
Wheeler County, Oregon, clouded the title
of certain property in Fayette County,
claiming to be heirs at law of Metcalfe,
who, they claimed, married their mother.
The claim created a sensation, and heirs
here have brought suit, asking the court
to require the Oregon heirs to produce
evidence of their interest in the estat.
1
1
" ""NX"?.'-
MASTER OF STANDARD Oil.
REBATES GIVEN
TO SUGAR TRUST
Grand Jury Finds Seven
Indictments.
FIRST UNDER ELKINS LAW
Trust and vlts Officials and
Railroads Accused.
MANY OTHER INSTANCES
New York Grand Jury Finds Crime
Skillfull)- Concealed New York
Central and Its Officials
Among the Accused.
NEW YORK, May 4.-The April Federal
grand Jury, in concluding Its labors to
day, handed down seven sealed indict
ments in the sugar-rebating cases. The
indictments are against the following:
The New Tork Central Railroad, the
American Sugar Refining Company, the
New York Central & Hudson River Rail
road Company and Nathan Guilford, vice
president of the company; theAmerican
Sugar Refining Company, of New York,
and C. C. Goodlee; Edgar and Edwin
Earle. the latter two being wholesale
sugar-dealers of Detroit, Mich.: the New
York Central & Hudson River Railroad
Company and Nathan C. Guilford and
F. .L. Pomeroy, general traffic manager;
the American Sugar Refining Company
and the American Sugar .Refining Com
pany of New York and C. C. Goodlee,
Kdgur and Edwin Earle; Nathan Gull
ford, F. L. Pomeroy; C. C. Goodlee,
Edgar and Edwin Earle.
Liable to Fine and Prison.
The first six indictments were found
under the Elkins anti-rebate law,
which provides penalties of a fine not
exceeding $10,000 or imprisonment not ex
ceeding two. years for giving, granting,
applying'Tor or accepting any rebate or
concession from the regular freight rates,
as published by a railway company as
a common carrier.
The seventh indictment found against
Guilford, Pomeroy, Edgar Earle and Edi
win Earle, charges them with having
collectively conspired to violate the pro
visions of the Elkins anti-rebate law.
First Under Elkins Law.
These are the first indictments for an
alleged violation of the anti-rebate law
found in this district. Sixteen sessions
of the April grand Jury were devoted ex
clusively to the consideration of these
cases, but It is evident from the present
ment which the Jury handed in with the
indictments that it deems the situation
but hurriedly canvassed. It recommends
that the investigation be continued by its
successor, intimating that Indications
point to the possibility that other com
mon carriers may be equally culpable with
the indicted roads.
The presentment, addressed to Circuit
Judge George U. Holt, states that the
grand jury deems it proper to call at
tention to the gravity of the evils inci
dent to the violation of the interstate
commerce laws which bave been prac
ticed in respect to merchandise trans
ported from New York City to various
points in the West. The presentment re
fers to the large amount of evidence con
sidered and the necessity of "preventing
various skillful disguises" used in trans
acting through-freight business, and con
tinues: Many Other Offenses.
"But the evidence investigated by us
bearing upon the indictments which we
have found has incidentally revealed to us
the probable existence of so many other
instances of similar offenses as to indl- -cate
a general and systematic policy, pur
sued by certain large shippers, of extort
ing from the different railroad companies.
"The evidence before us has related
mainly to shipments of sugar from va
rious refineries in this locality to West
ern markets. In addition to cases in
which indictments have been handed
down the evidence has indicated that
rebates have been regularly given to
sugar refiners and their customers by
several other Interstate lines; that r
regular allowance of 2 cents per 100
pounds has been made by various rail
road companies to sugar refiners to cover
alleged cartage, an allowance which,
though usually issued In the tariffs, often
represents no labor actually performed,
and that other special favors of various
kinds have been -regularly made in re
gard to the sugar shipments, either to
the. refiners themselves or to their of
ficers or agents engaged In subsidiary
business like lighterage. The evidence
before us has shown clearly in several
Instances and has indicated to be a fact
quite generally that the Elkins law as
to the giving of rebates has been disre
garded since the day of its enactment."
Skillful Devices of Concealment.
The presentment says the difficulties
of Investigation heretofore mentioned
and the skillful devices under which dis
crimination is often veiled may render
detection and proof of this claas of crime
difficult. "Nevertheless." it continues,
"we deem h our duty to call the atten
tion of this honorable court and the sur
ceedlng grand Jury to the great public.
Importance of a continued Investigation
into the state of affairs upon which the
indictments herewith submitted are based
to the end that further Indictments of a
like nature may be .found and other
steps taken to mitigate the evils which
we believe to be generally prevalent and
which cause great injury and oppression
to small shippers, thus dented equal ac
cess to markets In interstate commerce."
The "sugar rebating cases" are the
outgrom-th of charges against' the cor
porations and individuals now under in
dictmnt which were presented to the
Department of Justice at Washington by
Representative W. R. Hearst, of thM
city. The hearings have been In progress
lor 1A last six week -
tiinin tu imi .t. .