Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-08-05

REVELATIONS,
COmrr. Smiths Re-
port on Standard
Oil ISaSCOrcher.

| Washington. Aug. 4.-Significant
revelations are made public in report
submitted to Pres. Roosevelt, by Her.
bert Knox Smith, commissioner of cor
porations, concerning the operations of
the Standard Oil Co. In a previous re
port, the means and methods of the
Standard were explained. The present
report sets forth the results of those
methods and the effect they have had
on the consumer of oil and on the prof
its of the Standard Oil Co. 1t deals with
profits and prices showing how the
| manipulation of the oil industry by the
Standard has affected the pocketbooks
of the American people. Commissioner
Smith says:
"The Standard Oil Co. is responsible
for the course of prices of petroleum
and its products during the last %
years. The Standard has consistently
used its power to raise the price of oil
during the last 10 years, not only abso-
luteIy but also relatively to the cost of
crude oil.''
The Standard has claimed that it has
reduced the price of oil; that it has
been a benefit to the consumer; and
that only great combination like the
Standard could have furnished oil at
the prices that have prevailed.
Each of these claims" says Com
missioner Smith, lis disproved by this
report"
The increase in annual profits Of the
Standard from 1896 to 1904 was over
81, O0o, 900. The report says:
~TEe total dividends paid by the
Standard Oil from 1882 to 1906 were
1851 ,922, aO4, averaging thus 2415 per
cent per year. The dividends however
were much less than the total earnings.
1t is substantially certain that the en-
tire net earnings Of the Standard from
1852 and 1906 were at least s790.000.000
and possibly much more.
'"These enormous profits have been
based on an investment or at the time
OF its original acquisition of not more
than s75,OO0,000."
In his letter to Pres. Roosevelt trans
hitting the report, Mr.. Smith says:
The following facts are proven: The
Standard has not reduced margins dur
ing the period in which it has been re-
sponsble for the price of oil. During the
IaSC CiSnl years CoNcTSu tllS lSpoit,
1898 to 1905, it has raised both prices
and margins. It's domination has not
been acquired or maintained by its SUI
perior efficiency, but rather by unfair
competition and by methods economic
cally and morally unjustifiable. The
Standard has superior efficiency in rum
ming it's own business; it has an equal
efficiency in destroying the business of
1t keeps for itself the
profits of the first and adds to these
the monopoly profits secured by the
second. It's profits are far above the
highest possible standard of reason-
able commercial return, and have been
steadily increasing. Finally the history
Of this great industry is a history of the
persistent use Of the worst Industrial
methods, the exaction Of excrbitant
prices from the consumer and securing
of excessive profits for the small group
of men who over long series of years
have thus dominated the business"
In a few days another section of the
report will be made public setting
forth the Importance of price discrimi-
nation in restraining the business OF
and augmenting the prof
it's of the Standard.