The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1907-08-15
Corporations Commissioner
Reports New Phase Of the
Wicked Trust.
DIFFERENT HOME RATES
Another Section Of Resume Of Petro-
ieunn Industry Shows That Prices
Increase as Monopoly
Strengthens.

Washington, Aug. 14.-That the
Standard Oil company holds up its
American patrons in order to
maintain its monopoly in the old
world is the most striking charge
made by Corporations Commits
sioner Herbert Knox Smith in an
other section, made public today,
OF his report to President Roose-
yelt on the petroleum industry Of
the United States.
In addition, Mr.. Smith charges
the Rockefeller trust with pos
sessing a price discrimination sys-
tenn which provides for a higher
rate for oil in sections of the
United States where the trust has
complete monopoly and for a low
er rate where there is competition.
The commissioner says:
In the business OF selling petroleum
products In foreign countries the price
policy OF the Standard Oil company has
apparently been to sacrifice the interests
OF the American consumer for the pur-
pose or securing the Standards foreign
business, which Is a very important one.
In 1904 over % per cent of the Illuminating
per cent. - - ~
The relative movement of oil prices as
distinguished from their absolute level has
shown for the last eight years a startling
disparity between the United States and
foreign markets, particularly from 1902 to
vSncea from % sa .Js price bs ard
export price advanced much less up to
1898, declining in 1904, and the Hamburg
SSermam price shows practically the same
while the London price shows a steady de-
cline from 1901 to 1904 and very import,
ant drop during 1905. The course OF Ameri-
can and foreign prices in the last five
years covered by this report has shown a
greatly increased divergence, in general
sne american prices going up and the
Still more remarkable Is the comparison
OF the absolute level of prices Gas distin-
guished from their moyement) of the Unit
tistics obtained for these computations
were secured by a representative OF the
bureau, who visited the more important
European oil-consuming countries and Sc
cured accurate and representative data.
Monthly Price Averages.
It should be noted in comparing abso-
lute prices or American with foreign mar
kets that difference of about cent per
gallon must be allowed for on account of
the adherence In the quality OF oil sold in
the two markets, water-white oil being the
basis Of the American prices and standard
white the basis of foreign prices. Water
white oil 10 worth about cent more than
standard white. Therefore, cent per gal
lon should be deducted from the differ
ences between American prices and for
eign prices The following summary state
ment shows the averages of the monthly
prices for the periods specified after de-
ducting transport costs and duties: y#
Average United States price June 1903,
to August 1909 .........,...............1 1913
Average German price June, 1903, to
August l9Oo) ......,...,................. 7.S
Excess of u. s. price Qess cent?. -. 20
Average United States price January,
1903, to August, 19o5) ....................10 .10.5
Average English price January, 1908,
to August, 1856 Observation-Disclosures. 7.3
Excess of u. 8. price Cess cent?. 30
Average United States price October,
1903, to August, 1900 ::..........:.......10 .10.4
Average Danish price October, 1903, to
August, 1900 ..........."..."......... Ia
Excess of U. 8. price Qess cent? .. 2.2
Average United States price (Septem-
Average Belgian price tseptember. isc5j 81 81
Excess of u s. price Qess cent?. -. 1.9
Average United States price (Septem-
ber, 1865 ..................,........ 80
Average price in the Netherlands (Sep-
y
Excess of U. s. price Qess / cent? -. 1. o
Similarly for the leading oriental mar
Average net price In United States
(January, 1903 to May, 1905) ,..... SO
Average net price in Orient January,
1908, to May, 1909 ............,......... as
EXCESS of U. 8. price Cess cent?. -. rs
Again, It is to be remarked that the real
iy significant figures are the margins of
the respective prices above costs. The de-
throws into proper prominence these great
differences in prices. From the prices
may, therefore, be deducted, first, the price
OF crude oil (using Pennsylvania crude as
a basis), and second, the operating ex-
penses OF piping, refining, and marketing
oil, which amount to about 2 cents per
snaetIye s9h neriods above mentioned the m ay- l
erage German margin was 1.66 cents, as
compared with as in the United states;
cents. e as against 1sS in the Gnited States:
and the other countries mentioned--Rel-
gium, Holland, Denmark, and the Orient
show similar enormous disparities. Even
American margins to allow for difference
in quality, they are still from ~ to times
as high as the foreign margins;
yor Of foreign markets at the expense OF
the American consumer have naturally
called forth excuses from the apologists OF
create the Impression that the recent dee
cline in prices of American illuminating oil
abroad was necessitated by an oyersup-
Div OF that product. The have also claimed
that there has beon severe competition
against the American product from the
OILS OF Russia and other foreign countries
and that the reductions In export and for
eicn prices were necessary to retain the
American export trade.
No Over Supply.
Neither OF these arguments is well
founded There was no over-supply OF
illuminating oil during the years 1904 and
feO6 AT which time foreign prices were be-
Ing severely cut. The exports from the
limited States during 1904 were less than in
iS0I and 1907 Tho exports from the Ave
important oil-producing countries COM
hined show little more than normal I'm
crease The worlds production in 1906 was
iees than In 1904. The exports from the
1--WE principal countries combined In 1906
were more than Per cent. less than In
1904. There was an actual decline In the