The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1907-08-15

state was lz4 cents. oregon. supplied
from the same source, paid the price of
lSS cents. freight deducted, and the state
or washington 15.7 cents.
That these differences in prices are not
due to differences I'm cost OF marketing
arising from the density OF population. IS
shown BY taking the prices for large cities
In different parts OF the country. In the
north Atlantic division, prices, freight de-
Quoted. ranged In 1904 from rs cents at
Worcester, Mass. to lis cents In Jersey
rsns hs s s ss sSon Sa ss s srsa
south Atlantic division, the range Is from
I.S cents at Richmond, Va, to 1876 cents at
Jacksonville, Fla north central division
from 81 cents in Cincinnati, o., to 10.l
cents In st. Joseph, Mo-: south central
division, from cents in New Orleans, La,
e Mb cents In Little Rock, Ark. western
fHsSs'0n; fss ssnf ., cents .s at S Los Angeles CAL to
deducted. Very little Of the difference In
price among cities In any one Of the di-
visions Is due to difference In cost OF re-
In fact, even an between cities or states
ton OF the difference in price, after de-
aucung freight. can be explained by diff
Lerences In cost either OF marketing or re-
nning. The rest 10 due to q consistent
and wholly unjustiiabie policy OF price
calities.
Wide. -Discrepaneies. .s...-
Even in towns in the same state or same
vicinity these wide discrepancies occur.
In the east Texas and Louisiana division
OF the Waters Pierce OIL company In Au-
gust, 1903, the profit between delivered
s soSs Snd sos selling s BSs r on Brilliant 9a o 4,
$50 cents, and In August, 1904, II ranged
from O.0S cent to 800 cents. In the south
Texas division OF that company, on the
nine towns had profit margins below
cents and twenty-one towns had margins
above cents In April, 1904, and similarly
striking striking disparities occur within other in
Another interesting comparison is that
showing the lowest and highest prices
within given states. In Arkansas the diff
prices In December, 1904, freight deducted,
was I.6 cents: Colorado, 81; Idaho. So:
Louisiana, S5; Missouri, IA; Montana, 40;
New Mexico, 1S.2; Illinois, 4; Kentucky,
cents.
The evidence Is absolutely conclusive
that II Is the policy of the Standard OIL
non-competitive conditions to Impose the
highest prices possible and to extend such
non-competitive conditions by aggressive
price cutting calculated to drive out rivals.
Ine enormous profits secured over most OF
the country enable the Standard to carry
out this plan very effectively in those To-
ealities where price cutting is demanded
by this policy.
These determinations in prices were
largely made possible by the widespread.
system OF discrimination in railroad rates,
mainly secret, which was long enjoyed by
the standard OH company until recently
exposed by this bureau in Its report on the
transportation OF petroleum, published in
May, 1906 The elaborate system OF rail-
road discrimination, extending, as 1t did,
over l.
lowed the Standard to place its oil in any
given section where 1t happened to en-
counter competition at cost much below
the cost to its competitors. 1t was shown
In the bureaus report on this subject that
in several instances the unfair advantage
enjoyed by the Standard In freight rates
on its oil business. The Standard was thus
able virtually to suppress competition in
such areas, and this at a minimum OK loss
or perhaps even without actual loss. to-
itself. In this way II was able to trans
form competitive into noncompetitive ter
rttory. Having done this, the company
promptly raised its prices, not merely to
petitors, while theoretically able, in view
OF these high prices, to re-enter such mar
kets, were practically prevented from do
Ing SO, owing to the fact that the stand:
ard, by reason of it's advantage In rail
rates, could, and would, at any time when
necessary, again depress prices to a point
where such competitors would again be
1t Is thus apparent that discrimination In
railroad rates Is Intimately identified with
In prices.
Railroad Lubricants.
A special and important branch of the
oil industry is In the selling of railroad
lubricants. Certain very remarkable facts
railroad companies Of the United States in
lubricating oils for rolling stock amounts
to about $4,5OO,ooo per year. The Standard
OIL company, through the Galena-Signal
most complete monopoly therein, certainly
over s5 per cent. Of this business.
The system upon which the lubricating
unusual Each contract contains certain
invoice prices per gallon of oil, which
are to be paid unless reduced by other
provisions OF the contract. These ''in-
voice prices are excessively high, and are
the same In all contracts. But there Is
also in each contract q second factor. the
mileage guaranty" BY this guaranty
lubrication to a particular road shall not
exceed a certain amount per thousand
miles run by locomotives. passenger cars
and freight cars These guarantees. un-
the different roads. By means Of such
mileage guarantees, the net prices of lu-
bricants to given road may be placed at
the excessive invoice prices, or at any de-
sired amount below them.
III q Slaos HloUcs
The oils used and invoice prices per gal
Ion are as follows: Valve oil, 48 cents; en-
gine oil, q cents; coach oil, 33 cents; car
oil, IS cents. Reports were received from
ninety-four railroad companies, which op-
crate about 91b per cent. of the locomotive
and car mileage Of the country, all under
contract with the Galena-Signal OIL com
pany. BY reason of the very low price II
has paid over a period of ten years, as
compared with other roads, the Pennsyl-
vania system stands In q class by itself.
the mileage guarantees, widely
different prices have been made to rail-
road companies for the same oils, as is
shown by the following statement of av-
erage prices paid for valve oil: The Penn
sylvania system paid 23.5 cents per gallon.
eight roads averaged N7 cents, twelve
roads 357 cents, fifteen roads II cents. sew
enteen roads $50 cents, and forty one roads
48 cents. The prices paid for the other
oils were in exactly the same proportion
as those cited for valve oil. The import
ance OF the fifty-eight roads In the two
classes last mentioned is shown by the
fact that in one year they paid $2,6O0.O0O at
prices which averaged double those paid
by the pennsylvania
The Galena-5ignal OIL company has con-
a1fNnaQafVa n .xUhtnh