The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-11-18
Millions in. Valuations, bot
Little Shows Up On the
Assessors Be-:
Competitors Squeezed in
Some Towns and. Losses.
Made Up in Others.
II LIGHT may be thrown on Standard
OF

r IGHT may be thrown on Standard
IL vi methods in Minnesota by the
suit brought by the federal gov
eminent against the Standard Oil com.
pany and its associate corporations az
a combination in restraint Of trade.
which violates the Sherman ANTITRUST
act For one of the defendants is the
Standard Oil company Of Minnesota. ! a
corporation which few people knew ex.
isted .-H. 80 ..>-'.- - r
1t has been the policy Of the Stand
ard Oil company in Minnesota, ,, saya
a4St. Paul man, who for years has kent
track in detail Of the Standard IS bnsi.
ness turnout the northwest, ssto cut
prices. where there is sharp compete
tlon,- down to a, point where there is
absolutely no profit for rival companies
to sell oil. The Standard makes good
by selling at considerably higher
price at points where this competition
does not reach. 49, 49,
The OIL Trust.
II use the word Standard in its
broad sense, not as referring to the
Minnesota 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
Minneapolis, Mankato and La Crosse.
Wis. These superintendent have noth..
ing to do with each other, but report
to the Chicago headquarters Of the
trust. There is no Minnesota head
quarters. =.
"The Standard Oil company Of Mn
nesota is capitalized at only 800 900
yet it owns and operates Minneapolis
plant worth 100000, one in st. Paul
worth $50, 900, and between 200 and 800
separate plants at as many different
Minnesota towns, each worth $1,000 tat
$4,000. .~-' .....,-e--.
Avoiding Taxation.
"Under capitalization helps to avoid
taxes and serves to deceive the pubic
as to the magnitude Of the trust g prop.
critics. This Observation-Disclosures :, il
true thruout all the associate corpora.
tions Of the Standard Oil company. III
Is part Of their policy. The result in
the aggregate is that the Standard Oil
company as a whole has a capital Of
$10o,000,000, but for some years pasa
has paid an annual dividend Of 48 psI
cent, $48,000.000 a year.
, ''The Standard Oil company Of Min.
nesota, with 100000 capital, does an
annual business within the state Of
close to $3,O00,OOO.
THE twin cities are two points
where the trust has met with hard
competition by independent companies.
AS result they are selling kerosene
to the grocers for Z cents a gallon.
At Hudson, Wis, at Hastings, Still
water 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 81 cents.
This is just sample Of the methods
practiced turnout the state, the price
varying according to conditions the
trust finds; the economic law of supply !
and demand, and cost, cutting no fg-
ure in the price charged for the oil.
Low Grade Oil Sold.
kerosene sold by the Standard in
Minnesota, in fact thruout this part
Of the country, is Of low grade and
gives poor light and dulls lamp Chin
neys. It is a 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
burning qualities Of the illuminating oil &,
sold. It is only safety regulation, re-,
quiring it to burn at 100 degrees test.
Standard oil burns at 1872 or 1913 de-
grees.
" A state law demanding that the Oh
Continued ON I'D Pare eth CoInu,u