Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-08-12
CONDITION OF THE WEATHER
temperatures at omaha yesterday

American consumer have naturally called
\ forth excuses from the apologists of the
Standard. They have attempted to create
the impression that the recent decline in
/ prices of American Illuminating oil abroad
was uecessitated by an over-supply of that
| product. They have also claimed that there
| has been severe competition against the
! American product from the oils OF Rus
STA and other foreign countries, and that
| the reductions in export and foreign prices
| were necessary to retain the American ex-
port trade
Neither OF these arguments is well
| founded. There was no over-supply of H.
| Eliminating oil during the gears 1904 and
| 1905. at which time foreign prices were be-
| ing severely cut. The exports from the
! United States during 1904 were less than
in 1901 and 1902. The exports from the FIVE
important oil-producing countries combined
| show little moro than normal increase
The worlds production in 1906 was less
than in 1904 The exports from the five
| principal countries combined in 1905 were
more than per cent less than in 1904.
! There was an actual decline in the total
imports into the United Kingdom during
1904 as compared with the two preceding
/ years, and a still more conspicuous de-
cline during 1905. Notwithstanding this.
! the prices in England fell enormously. The
| imports into Germany during 1904 were al
| most exactly the same as during 1903 and
the imports during 1905 fell of consider
| ably. But the German prices declined
very materially in both years.
The conditions of supply therefore do not
excuse the extraordinary decline in foreign
| prices in 1905 and the resulting discrimina-
| tion against the American consumer. This
| decline was not necessitated by any over
| supply of oil. In fact the movement of
prices was precisely the opposite of that
which would have been expected from the
changes in supply.
The falsity of the Standards arguments
Is further demonstrated by the fact that
during 1904 and 1905, a period when the
standard claims that an oversupply existed.
that company actually took large quantities
of oil in Russia to supply its trade in
Europe and the orient. During 1904 it
shipped from Russia over a million and
a half barrels of Illuminating oil for dis
tribution in European and Asiatic coun-
tries 1t has secured large crude produc-
tion In Roumania and has established re-
hneries there and in other countries for
refining foreign crudes. 1t is perfectly
evident that the Standard has not always
been concerned with maintaining the ex
port trade in American Illuminating oil. but
has been solely interested in maintaining
Its own domination in the markets of the
world frequently at the expense of the
| United States
1t is true that during 1904 and 1905 the
Standard met new competition IN foreign
markets, but its new competitors were
largely group of concerns which drew, a
considerable part of their supply from the
United States itself.
burden ON American Cou.umer.
having monopoly at home, IL has
charged such prices as 1t could thereby ex
| 'crt' ana the American consumer has had
10 pay these prices. Meeting competition
abroad, 1t has given the foreign consumer
enormously low prices and It has used the
pronts made at home to maintain it's posi-
uon abroad, SO that the American con-
sumer has been severely discriminated
against for the purpose of maintaining, not
the dominance of American export trade.
out the dominance of particular combina-
uon which has used its power frequently
ana conspicuously to the disadvantage of
the American public
still more important and extraordinary
state OF affairs appears in the conditions OF
prices In the United States. study of the
Standards price policy has brought to light.
as shown In this report very remarkable
system or Determinations in prices for the
same products In different localities
throughout this country. It is evident that
the Standard charges price which is pro-
portionate to the extent OF its monopolv
IN given place, and reduces prices in
proportion to the degree of competition
which 1t may meet
The significance of the extraordinary dif-
ferences in prices charged in many dif-
ferent sections OF the country or IN dif-
ferent towns can be appreciated only in
the light of the fact that a very small
amount per gallon constitutes a fair mar
gin OF profit on the investment In rehnins
and marketing OF petroleum products. A
/ difference OF about mills per gallon In the
price of illuminating oil may mean a d,f-
ference between a profit of 10 per cent on
investment In refining and marketing and
no profit at all. But the actual difference
In the Standards prices among competitive
and noncompetitive towns and areas. after
making all allowances for differences IN
cost of production and distributing. often
amount to several cents per gallon.
combination which can command the profts
that these figures imply. over large areas
has therefore obviously a tremendous wea.
pom when It enters on aggressive price
cutting against independent concerns.
The most accurate and complete data
we're obtained by the bureau on this sub.
pect directly from the records OF the
Waters-Pierce OH company "a Standard
concern). The territory OF that company
includes Arkansas, Oklahoma, Indian Ter.
ritory, Texas and part of Missouri and
Louisiana separated In these records into
seven divisions by the company. In lsoS
the profts varied from 0s cent in the St,
Louis division to cents per gallon in tn.
north Texas division; st. Louis division.
os cent per gallon; east Texas and Louisi.
ana, is cents; Missouri. is cents; Arkan.
sas 2S cents; south Texas, aS cents; central
Texas. S6 cents; north Texas, a. cents
showing an extreme range of profts and
OF course, a corresponding extreme ranre
OF net prices. Similar inequalities IN Local
prices appear in the gasoline business al
this company.
Due solely To Monopoly.
In fact. even as between cities or states