Omaha daily bee., 1899-05-20
STANDARD OIL TRUST PROFITS.
Extent of the Enormous Tribute Ex-
acted from the American People.
Kansas City Star.


acted from the American People.
Kansas City Star.
Some astounding statements regarding the
earnings of the Standard Oil company were
made by Attorney General Monnett of Ohio
before the industrial commission at Wash
ington Tuesday. He declared that the trusts s
annual profits amount TO more than the
aggregate value of the agricultural products
of Ohio and a comparison of available sta
-tistics of the petroleum business seems to
bear out his statements. Mr.. Monnett says
that the net cost of refined oil averages
cents a gallon and all above that price is
profit. The production of petroleum last
year was 2,500,000 900 gallons. The trust
controls about 70 per cent of this, according
to recent estimates, or LOO, 200, 900 gallons
1t is probable that 70 per cent is low esti-
mate of the trusts part of the output The
average wholesale price last year was little
over o cents gallon, SO, If Mr. Monnett's
statement of the cost of production is cor
rect the trust earned $17, 900 last year.
1t actually paid devidends amounting to
nearly $50, ,00O, 900, or 30 per cent on its
$97, $50, 900 of capital.
Oil has recently advanced 1t Is quoted
at 10 cents in New York now. At that price
the trust apparently Is making a profit of
cents gallon, which will amount TO $780,
100000 per annum II the present price Is
maintained. The value of agricultural
products in the rich state of Ohio does not
amount to much more than that sum. These
figures are, Of course, largely approxma-
tions, for the Standard Oil company does not
give out any information about it's business,
but they probably are not far from right.
The directors of the company yesterday
declared quarterly dividend of 12 per cent,
Its last preceding dividend was per cent
This makes Is per cent, or about $1S,000,000,
TO be distributed to stockholders as a result
of half years business. The company's
stock is worth nearly 400 per cent premium
over its par value, In other words, the
market value Of its S97, $50, 900 OF capital
stock is close to $500, 600.
A person does not have to be very vio-
lent in his opposition to trusts to realize
that such a corporation as the Standard Oil
company should be prevented by law from
laying such heavy tax on the people as is
necessary to pile up the enormous profits
that 1t makes every year. 1t may be con-
ceded that the Rockefellers have wrought
benefcent work for mankind in building up
such complete and marvelously effective
system as they have created for distribut-
ing oil at a comparatively low cost to con-
sumers, and they are entitled to fortune
for 1t. But there is no justification from
any public point OF view for the eXtraor-
dinary profits that the company is making.
The war revenue law assesses a tax OF
one-quarter of l per cent on the gross earn
ings OF the company exceeding $3.50, 900.
This suggests a possible method OF curbing
the trusts by assessing a monopoly tax
against them, which could be so adjusted as
TO allow them reasonable returns on their
capital and require them to turn into the
public treasury all profits in excess OF the
amount necessary for that purpose.