The Oskaloosa herald., 1907-08-08
METHODS OF OIL
TRUST ARE SCORED
SECOND REPORT ON OPERATIONS
or STANDARD COMPANY.
IT HAS RAISED PRICES
Enormous Profits Acquired by Unfair
and unIustIfIable Means, Says
Commissioner Of Corpora
lions Herbert X. Smith.

u
Washington. Aug. 5.-Significant
revelations were made public Sunday
In report submitted to President
Roosevelt by Herbert Knox Smith,
commissioner of corporations, con-
corning the operations of the Standard
Oil company.
In previous report the means and
methods of the Standard we're ex-
planned. The present report sets
forth the results of those methods and
the effect they have had on the con
sumner of oil and on the profits OF the
Standard Oil company. 1t deals with
profits and prices, showing just how
the manipulation of the oil industry by
the Standard has affected the pocket
books Of the American people.
Has Raised Prices OF OIL.
Commissioner Smith says
THE Standard Oil company is re-
sponsible for the course of prices of
petroleum and its products during the
last rs years. The Standard has con.
sistently used its power to raise the
price of oil during the last ten years,
not only absolutely. but also relatively
to the cost of crude oil"
The Standard has claimed that It
has reduced the price of oil; that Il
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 one of these claims" says
Commissioner Smith, is disproved by
this report"
Profits Are Enormous.
The increase in annual profits Of
the Standard from 1896 to 1904 was
over s27,000,000. The report says:
The total dividends paid by the
Standard from 1882 to 1906 were $751;
922,904, averaging thus 24.15 per cent.
per year The dividends, however,
were much less than the total earn
ings. 1t is substantially certain that
the entire net earnings of the Standard
from 1882 to 1906 were at least $780,
100000, and possibly much more.
These enormous profits have been
based on an investment worth at the
time of it's original acquisition not
more than $75,O00,000."
In his letter to President Roosevelt.
transmitting the report, Commissioner
Smith says:
Methods Of Trust Scored.
The following facts are proven:
The Standard has not reduced mar.
gins during the period in which II
has been responsible for the prices of
oil. During the last eight years GOV.
cred by this report (1S9S to 1900 It
has raised both prices and margins.
Its domination has not been acquired
or maintained by It's superior efiicien-
cy, but rather by unfair competition
and by methods economically and
morally unjustifiable. The Standard
has superior efficiency in running its
own business 1t has an equal efficien-
cy in destroying the business of com.
petitors. 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 reason.
able commercial return. and have
been steadily increasing Finally, the
history Of this great industry is his,
tory Of the persistent use of the worst
Industrial methods, the exaction Of
exorbitant 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 dom
mated the business"
In a few days another section of the
report will be made public, setting
forth the importance of price discrim-
ination in restraining the business OF
competitors and augmenting the prof
its of the Standard.