The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1906-11-23
WILL PUT ON LIGHT
Minnesota Standard Oil
Concern Is Indicted.
THREE DISTRICTS IN STATE
Company Does An Annual Business Of
Close to $4,000, 900; What
interviewer Says.
[FRoM THE MINNEAPOLIS JOURNAL

methods in Minnesota by the suit
brought by the federal government
against the Standard Oil company and
its associate corporations as a combina
ton in restraint of trade, which violates
the Sherman antitrust act. For one of
the defendants is the Standard Oil COM
pany of Minnesota, corporation which
few people knew existed.
at has been the policy of the Stand
ard Oil company in Minnesota" says a
st. Paul man, who for years has kept
track in detail of the Standards bust
ness throughout the northwest, ''to cut
prices, where there is sharp competition,
down to a point where there is absolute
ly no profit for rival companies to sell
oil. The Standard makes good by sell
ing at a considerably higher price at
points where this competition does not
reach.
81 use the word Standard in its
broad sense, not as referring to the Min
nesota corporation by that name, which
nearly everybody has forgotten, but as
meaning the general oil trust. The
Standard has divided Minnesota into
districts, with superintendent at Min
neapolis, Mankato and La Crosse, Wis.
These superintendent have nothing to
do with each other, but report to the
Chicago headquarters of the trust.
There is no Minnesota headquarters.
''The Standard Oil company of Mime
sofa is capitalized at only 100000, yet
it owns and operates a Minneapolis
plant worth 100000, one in st. Paul
worth $4,000, and between 200 and 300
separate plants at as many different
Minnesota towns, each worth $1,000 to
So, 900.
"Under capitalization helps to avoid
taxes and serves to deceive the public
as to the magnitude of the trusts prop
critics. This under-ca capitalization is true
throughout all the associate corpora
lions of the Standard Oil company. 1t
is part of their policy. The result in
the aggregate is that the Standard Oil
company as a whole has a capital OF
500 100000, but for some years past
has paid an annual dividend of 48 per
cent, $4s,OOO,0OO year.
''The Standard Oil company of Min.
nesota, with 100000 capital, does an
annual business within the state of
close to $3,000,000.
''The twin cities are two points where
the trust has met with hard competi-
ton by independent companies. As
result they are selling kerosene to the
grocers for cents a gallon. At Hud-
son, Wis.,, at Hastings, Saltwater and
Pennington, Mimi, all points where the
freight rate is the same as to the twin
cities, the Standard has little or no hard
competition and sells the same oil to
the grocers at SHs cents. This is just
a sample of the methods practiced
throughout the state, the price varying
according to conditions the trust find;
the economic law of supply and demand,
and cost, cutting no figure in the price
charged for the oil.
"Kerosene sold by the Standard in
Minnesota, in fact throughout this part
of the country, is of low grade and
gives a poor light and dulls lamp CHM
neys. 1t is low gravity oil. The state
law is in form which doubtless is
very satisfactory to the oil trust. The
state law in no way regulates the bnrn-
ing qualities of the Illuminating oil sold.
1t is only safety regulation, reIuir-
ing it to burn at 100 degrees test.
Standard oil burns at l22 or 1913 degrees.
GA state law demanding that the oil
come up to a certain gravity test is
what is needed and is what would
knock out the poor oil the Standard
forces Minnesota to burn. This poor oil
comes from the Ohio crude oil fields,
which crude oil is of poor quality and
won't make good kerosene. The Stand
ard could get good oil from Pennsylvania
wells, but it would have to pay addi-
tional freight and would make less
money out of the dear Minnesota pub
lie.
"The independent companies, operat-
ing with headquarters in the twin cities,
are able to stand the pace on the cheap
grade of kerosene which is handled
without ANY profit, by making some
thing on other kinds of oils. They sell
another grade of kerosene which is a
much better Illuminating oil and for
which many people are willing, even
glad, to pay higher price after get
ting disguised with the cheap stuff gen.
orally thrust upon them.
"The Standard only sells the one
grade of kerosene, no matter what price
customer is willing to pay.
''The railroad commission of Minneso-
ia saved the people of the state $780,