The Montgomery advertiser., 1907-08-07
NEW BLOW FALLS
 ON STANDARD OIL
UNLAWFUL METHODS SHOWN IN
 REPORT TO PRESIDENT.
Profits are s7e0,000,OOe Enormous Revenue fs Derived on Forcing Down Price to Producer nnd on Secret Rebates from
 Railroads.
Washington Special to Chicago Trib-

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 Washington Special to Chicago Trib-
 une.
 Following close on the track Of the 29,240,000 fine imposed by Judge Lan- dis in Chicago on the Standard oil Company for violation of the Elkfns law in unlawfully swelling it's profits by accepting secret rebates from the Chicago and Alton Railroad, signi- ficant revelations are made public to- day in report submitted to President Roosevelt by Herbert Knox Smith, Commisslonr of Corporations, concrn- ing on the operations of the Standard Company.
 In a previous report the means and aethods of the Standard were ex- Wained The presnt report sets forth the results of those methods and the effect they have had on the consumer of oil and on the profits of the Stand ard oil Company. It deals with profits and price. showing just how the man ipulation of the oil industry by the Standard has affected the pocketoooK oi the American people.
 Used Power to Squeeze Public.
 Commissioner Smith says:
 ''The Stanard oil Company Is respon- sible for the course of prices of petro- ieum and it's product during the last twenty-five years. The Stanard has consistently used it's power to raise the price of oil during the last ten years not only absolutely but also relating to the cost of crude oil.
 'The Standard has claimed that 1t has reduced the price of oil, that 1t has been a benefit to the consumer. ana that only a great combination like the Standard could have furnished oil at the prices that have prevailed. Each one of these claims Is disproved by this report.
 "The increase in annual profits of the Standard from 1896 to 1904 was over $27,000,O00. The total dividends paid by the Standard from 1882 to 1906 were 551,922,904, averaging thus 24,15 per cent. per year. The dividends, how ever, were much less than the total earnings. It is substantially certain that the entire net earnings or the Standard from 1882 to 1906 were at least $79o, 100000 and possibly much more.
 These enormous profits have been based on an investment worth at the time of it's original acquisition not more than $75.000,000,
 Unfair Methods Exposed.
 Tn his letter to President Roosevelt transmitting the report, Commissioner Smith says: ,,,.
 The following facts are proven: The Standard has not reduced margins ouf- ing the period in which IL mas Deen responsible for the prices of OH. Dur ing the last eight years covered py this report (S93 to 19Oo) It mas raiseo both prices and margins
 "Its domination has not been acqulr- ad ar maintained by its superior em, ciency, but by unfair competition ano hv methods economically and mofanS unJustifable.
 ssThe standard has superior efficiency in running it's own business ;lt mas an equal efficiency in destroying the business of competitors. It keeps TOT itself the profits of the first, and adds to these the monopoly profits secured by the second. ,.,
 "Its profits are far above the high est possible standard of reasonapie commercial return, and have peer steadily increasing.
 "FinalIy the history of this grea' industry is history of the persisten' use of the worst indbstrial nelnous seo.s. 1he exacting of exorbitaht prices From the consumer and the securing Of eX- cessive profits for the small group of men who. over a long series or years have thus dominated the business.
 In A few days another section or the report will be made public, settlns forth the importance of price discrimlh- : ation in restraining the business or competitors and augmenting the pronts of the Standard.
 ~MarEins Used to Fill Golfers.
 The report. in part, is as follows:
 'The investigation Of prices or pc troleum in the United States snoWs two conspicuous facts:
 "1. There has been marked m crease in the margin between the price of crude oil and the prices of ..s lead ing finished products in the United states during the last ten years. This increase in margin is oniy in small part