Arizona republican., 1907-08-05

washington. D. c.. Aug. 4.-The re-
mort Of the commissioner of corpora
tione on the petroleum industry was
made public today. The report goes
frly into the oil business of the coun-
trv. showing the growth of 1t but deals
more particularly with the methods of
the Standard OIL company. In conclud-
jnc his letter OF submittal Commits
sioner Smith says:
The following facts are proven: The
Standard has not reduced margins dur
ing the period in which it has been re-
sponsible for the prices of oil. Dpring
the last eight years covered by this
report QS9S TO 1909 it has raised both
rrices and margins. Its domination
has not been acquired or maintained
by its superior efficiency. but rather by
unfair competition and by methods
economically and morally unjustifiable.
The Standard has superior efficiency
in running its own business; II has an
equal efficiency in destroying the busi-
ness Of competitors. 1t keeps for Itself
the profits of the first and adds to
these the monopoly profits secured by
the second. Its profits are far above
the highest possible standard of a rea-
sonable commercial return. and have
been steady increasing. Finally, the
history Of this great industry Is a his
tory Of the persistent use of the worst
Industrial methods. the exaction Of ex-
orbitant prices from the consumer, and
the securing Of excessive profits for
the small group Of men who over a
long series Of years have thus dominat-
ed the business"
On the subject of price discrimina-
tons in different parts of the country
the report states:
The prices Of illuminating oil differ
very greatly in different places. This
is due partly TO the differences in
freight rates and cost of marketing
and partly to the policy OF price dis
elimination; that is. the Standard
charges more where composition Is
absent or inactive and less where Il is
active. In order TO find the true aver
age price at any gwen time. or the true
price movement il is therefore neces-
sary TO secure prices from a large
number Of different places. The prices
through the country are entirely
unsatisfactory They do not rep-
resent correctly the prices in the
cities where they are published. and
much less the prices in other places.
The bureau has therefore secured
prices for the most part directly from
retail dealers scattered throughout the
country.
information regarding the profits of
me standard is not complete but il
has been ascertained that its dividends
from lSS2 to 1906 totaled 1851. .922. 9O4. so,
or an annual average Of s22,O77. 600.
Inc average amount Of trust certifi-
OateS Of stock outstanding during the
period was s91,4S4574. The dividends
mus averaged 2415 per cent per year.
nuI the dividends were much less than
'le total net earnings. For one three
year period for which information was
secured this excess amounted to sew
my per cent It is estimated that
''eSe enormous profits have been based
Vi an investment at the time of ac-
qulSluon OF not more than $4,000. 900.
concerning the claim of the Standard
'ldI II has been the cause of a reduc-
''on @ IN the prices Of oil the report saws:
me representatives and defenders
VI me Standard Oil company. az a cor
,sld'lVe Of their unwarranted claim
mat 1t has been the cause Of the re-
1ue'ion IN prices, make the further