The daily journal. (Salem, Or.) 1899-1903, 1900-08-02
STANDARD OIL.
HOW ONE OF THE NECESSITIES OF LIFE
HAS MADE lMILLI0NAIRES.
"0ne Of the Paramount Issues" Editorial In the
San francisco Examiner,

"One OF the Paramount Issues" Editorial In the
San francisco Examiner.
Four years ago the paramount issue Of
the Presidential campaign was the ques-
tion what sort Of dollars we should have
This year the paramount economic issue
is the question who shall own whatever
dollars there are and incidentally oursel.
YES along with them.
Thirty years ago the Standard Oil
Trust had a capital Of $l,0O0,000 Now
its nominal capital lie $4,000, 900 and
the actual value Of it's stock, based on
market quotations and earning capacity,
is over $500, 900, 900. II has increased it's
wealth over 500 times, or $4,000 per cent
in thirty years. In the same time the
wealth Of the nation Cncluding Standard
OiD has not increased over 300 per cent.
II the trust has increased so much more
than the average, the rest Of the country
must have increased that much less.
And included in that remainder are
scores OF other trusts, some Of which
have accumulated wealth even
more rapidly than Standard Oil. The
Rockefeller combination cleared $4s,.
100000 last year on a nominal
capitalization of $1lO,0O0O 900. The Car.
negie Company expects TO clear $42, ,000,-
600 this year on a nominal capitalization
Of $25, 100000. When the trusts have
divided their &C, 80, 100 and $50 per cent,
how much will be left for common peo-
pie.
From 1882 TO 1891. when the Standard
Oil Trust was comparatively a small af-
fair, its annual dividends averaged IA
per cent, from 1891 TO 1896, when most
OF the industries Of the country were in
the depths Of distress, and millions Of
men we're tramping the roads vainly
hunting for work, the Stan dard Oil
dividends jumped TO 81 per cent. In
1897 they were 33 per cent, in 1898, 30;
in 1899, 33, and in 1900, 4S per cent.
The defenders Of the trusts sometimes
say that all this means nothing-that the
shares OF these corporations are to be
bought in the market and that II their
workmen are thrifty and save their
wages they can buy them out and own
the enterprises themselves.
Let us see. A high Standard Oil
official was boasting the other day that
his trust was friend OF labor, because
II employed $1,000 men at a minimum
wage of $3.50 day. A dollar and half
working day is nine dollars a week, or
S46S year. Thirty-hve thousand men
at that rate will earn $40, $3.50, coo year,
or almost precisely one.third of the
amount distributed in dividends among
Mr.. John ID. Rockefeller and half a
dozen associates.
II we call the average daily wage $2 90,
since $3.50 is the minimum, these
30, 600 men would earn $4,000 per
week, of t2l, $40, 90 Il year-considerably
less than the dividends Of Mr.. Jobu d.
Rockefeller alone.
Now, assuming that Mr.. Rockefeller
and his 30, 600 workmen have the same
income, which is an extensively generous
assumption for the workmen, on which |
side is there likely TO be more ready |
money for investing in additional stockY |
Mr.. Rockefeller has one small family |
TO support. He has no vices and no |
expensive habits of any kind. He does |
not even pay taxes when he can help II, |
all of his income is available |
for reinvestment.
Each Of the $4,000 workmen may be
presumed 20 have at least wife and |
three children-l76,0 900 people in all TO |
be supported from an income no larger |
than Mr., Rockefeller's. At an average |
wage of 800 per day, each person in
Standard Oil workman's family would |
have forty cents day 20 live on includ.
ing food, clothing, shelter and luxuries.
IL hardly looks as II more than 80 cents
out Of the 40 cents could be devoted 10 |
the purchase of stock.
similar proportions prevail in other
enterprises. Mr.. Carnegie's individual