The Black Hills union and western stock review. [volume] (Rapid City, S.D.) 1904-19??, 1907-08-23
Who Will Pay the Fine.

Herbert Knox Smith, United States
commissioner of corporations has
made another ,licid and vigorous
report on the methods of the Stan
dard Oil Company, which will be of
timely service in the education of the
public in regard to the true charac-
ter OF the great monopoly. The first
report went into the details of the
immense profits of the company and
Its system of rebates. In the second
report is set forth the fact that the
price abroad of American oils is
lower than in the country where it
is produced and that there is also
throughout the United States a
marked variation in the prices ac-
cording tc the grip the monopoly is
able to exercise in different locali-
ties. Commissioner Smiths reports
have unusual value as public docu-
ments because they show a mastery
OF the facts, give them concisely,
and fearlessly go to the mark, sweep
Ing aside the subterfuges with which
the monopoly has surrounded itself.
a dlffefellce of several cents q gallon
In favor Of foreign is
proved. AS petroleum is on the free
list there is no chance to charge this
margin on protective tariff. The diff
fercnce is due to an exclusive con
troll of the American market, with
"a resulting power to discriminate
and bulldoze in many directions.
In the matter of lubricating oil
the monopoly has played favorites,
requiring some railroads to pay ex-
orient prces, while one o the sys-
tens was given q lower price than
any Of the others. Throughout the
United States the prices for illumin-
at1ng oil are fixed .oca1ly In an arbi-
trary manner, the company's profits
varying from less than a CEN a gal
Ion to 4 cents. Data obtained from
5000 retail dealers warrant the state
ment that there is no general mar
ket price in this country for petro-
leum products. Commissioner
Smith says these variations were
made possible by the system of Sc
cret rebates long carried on by the
Standard Oil Company. The COM
pany claims that it has made its prof
Its by superior business ability and
economic improvements. Commise
sloner Smith reaches an opposite
conclusion, furnishing the facts and
figures to clinch his opinion that the
monopoly has adopted and invented
unfair means to destroy competition,
oppressed the public by extortion,
raised prices !i1vstead of lowering
them and charged more than would
have been asked by smaller concerns
If they had not been crushed in COM
petition.
Who will pay the fines imposed il
the monopoly can not be curbed? 1t
would take less than a cent a gal
lon to wipe out the fine of $29,240,-
600. In so vast a business, covering
various products, and reaching into
foreign as well as domestic markets,
1T would be easy to hide a manipu-
lation for much larger amount of
money. The standard oil company
has the power to shift all fines to
Liz puDliC, anu Tie luea cannot De
entertained that it will omit to do it.
A combination in restraint of trade
with rebates Or other discrimina-
lions, is forbidden by law. Therefore
the task in hand is to compel the
Standard oil company, and all such
organizations, to obey the statute
that congress has framed, and that
must be enforced unless monopolies
are to be allowed to run over the
law. bringing it into contempt. and
opening a road by which society
might be generally demoralized. Com
missioner of Corporations Smith
has armed himself with exact knowl-
edge. and is a champion whose blows
tell.-Globe Democrat.