The free lance. (Fredericksburg, Va.) 1885-1926, 1907-08-13

psny Has Apparently Been to Sac.
rifioe Interest Of the American Con.
sunner to Secure Foreign Business.
WASHINGTON. Aug l2.-"In the bust
ness selling of petroleum products in
foreign countries the price policy OF
the Standard OH company has appa
rcnuy been 10 sacrifice the interests
OF the American consumer Tor the puc
pose OF securing the standards Tor.
eign business"
This direct charge is made in an
official report TO President Roosevelt
by Herbert Knox Smith. commissioner
81 corporations. in submitting % him
further results OF the Investigation OF
the operations of the Standard Oh
company by the bureau of corpora.
tons
Part three Of tho report. d,aiine
with DETERMINATIONS IN prices was
made public by Commissioner smith
II consists of a detailed summary OF
the work Of the Investigators ana a
letter OF transmittal OF the report e.
the president
COMMISSIONS Smith asserts that the
STANDARD enjoying practically AN ao
solute monopoly OF the on trade iu
this country has charged such prices
as it could thereby eNtort. and Ia,
American consumer has had to pay
these prices Meeting competition
abroad. 1t has given the foreign con
sumner enormously lower prices. and il
has used the profits made at home e.
/ . fnnfH lin 80
the American consumer has been SCI
ycrely Disseminated against for the
purpose OF maintaining not the domi-
nance OF American export trade. but
the dominance OF a particular combi
nation which has used fits power FIRE
Guently and conspicuously 10 the dis
advantage ct the American public"
Extraordinary statements are con
tanned In the report respecting the
var, ius prices OF oil in this country
II Is pointed ont that as the Standard
does business directly with tho -.tail
dealers. % H. n position 70 make dit
ferent prices on the same grade Of
oil in different localities. aud IL actu
ally takes advantage Of that position
In localities where the Standard has
no competition IL exacts immensely
higher prices for its products than il
charges Ia localities where il Is Obliged
TO meet competition
II is shown IN the report that seven
mills per gallon on illuminating oil af-
foris profit of about Do per cent on
the investment IA refining and market
in- the OIL.
But the actual differences in the
Standards prices among competitive
and non-compctitive towns and areas. ~
says Commissioner Smith. often
amounts 20 several cents per gallon. 4
combination which can command the
profits that these figures imply. over
large areas. has therefore obviously a
tremendous weapon when il enters on
aggressive price cutting against indie
pendent concerns"
The report adverts 70 striking"
instance 0f this divergence I'm the prices
OF the same grade of oil from its re-
fnery. near San Francisco. several
hundred miles 10y water and rail Go
southern California. and there sells IL
for several cents gallon less than il
charges for IL in san Francisco. Com
missioner Smith declares that the evi-
dence lis absolutely conclusive" that
the Standard takes full advantage Of
all non-compeutive conditions TO i'm
pose the highest prices possible. and il
uses similar means 70 drive from the
competitive field an would-be rivals for
business
COMMISSIONS smith expresses his
belief that he has made clear in this
report the obnoxious policy OF the
Standards price policy" and that he
has shown that the STANDARD has
maintained its monopoly mot by SUI
periority Of service and by charging
reasonable prices. but by unfair meth
DDS of destroying competition. a com
bination which then uses the power
thus unfairly gained 10 Cypress the
public through wholly extortionate
prices"
BY direction Of the president Com
missioner Smith says he has withheld
from publication al this time some inn
portant evidence of price discrimina-
ton on account Of the proceedings
which have been instituted by govern
ment to dissolve the Standard OH COM
uanv