Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1907-08-16

will surrender to the railroad its H.
cense. Federal injunctions are to be
modified to fit this adjustment a test
case on the validity of the law will be
made at once and the line of procedure
in future cases will be determined.
Smiths Oil Trust Report.
Commissioner of Corporations Her
bert Knox Smith in the second part of
his report to the president on the petro-
leum industry deals with prices and
profits. He declares that the familiar
assertion of oil trust officials that the
combination has reduced the price Of
oil Is untrue. On the contrary, he as
serts that the Standard OIL company
during the last ten years has used Its
power to raise the price of oil absolute
ly and relatively to the cost OF produc-
ton, and this statement is based upon
a large number of prices directly col
lected by the bureau from thousands Of
retail dealers throughout the country.
The report also emphasizes that a much
greater increase of the trusts margin
has taken place In the case Of byprod-
ucts than in Illuminating oil-namely,
In gasoline, lubricating oil and paraf-
fin wax. Considering these three prod
ucts along with Illuminating oil, it is
found that the relative average margin
increased from &c cents in 1898 to
|S.4 cents in 1905, or an advance Of
re En n,sfo Of ,ie
Is appreciated only when we consider
the output Of the Standard. According
to this estimate the profits for 1904 on
all products Of the trust were $21, OOO,-
600 more than in 1893.
Taking up the question of dividends,
the report shows that the Standard
paid total of $551 922, 904 to stock
holders from 1882 to 1906, or an aver
age Of 24.15. per cent year, but it
should be borne in mind that the divi-
dends were much less than the total
earnings. 1t is estimated that the total
earnings from 1852 to 1905 amounted
to 500, 100000 and possibly more, prof
its which accrued from an original in
vestment of not more than $75, O0O,O0
at the time of the trusts formation.
The oil industry is founded upon nor
NAL competition from 1866 to 1874, dur
ing which period there was q fall in
margin between price Of export oil and
the product ut the we'll, and it is In
ferred that further reduction would
have been made in the absence of a
combination. A part of the reduction
which did take place from 1874 to 1870
under the Standard regime is credited
to decrease in transportation cost by
rail and through the construction of
the seaboard pipe line, which idea orig
mated not with the Standard, but with
the Tide Water Pipe company, then
wholly independent. which built the
first pipe line. Proof is said to be clear
that the enormous profits Of the trust
are due not only to superior efficiency,
but also to monopoly power. Mr.. Smith
says that the Standard gives the pub
lie none of the benefit of it's superior
efficiency, but, on the contrary, charges
higher prices than those which would
have existed, and he declares that
under free competition greater economy
and efficiency would have been de-
veloped.
In answer to the question why in
dependent concerns may not now COM
pete with the trust and force it to re-
duce prices the commissioner recounts
the VARIOUS unfair practices of the
trust, chief Of which are railroad dis
elimination, price discrimination in
selling, bogus companies, espionage Of
rivals, short measure and inferior quail
ity Of Oil.
Government Best ShipbuiIder.
The battleship Connecticut, the first
Of Its class to be built by the govern
ment instead of by private contract, In
series Of runs over measured course
of the Maine coast has proved herself
better than her sister ship, the Loulsi-
ana, built by the Newport News COM
pany. The Connecticut made an aver
age speed of 1878 knots for her five
best runs, and her fastest time was
1901, not allowing for tidal correc-
tons. The best average Of the Louisi-
ana was 1850 for five runs.
Another Utilities Commission.
The Connecticut general assembly
wound up Its session by enacting q
law somewhat similar to that just
adopted in New York providing for the
appointment of q commission to super
wise and control all the public utilities
of the state. The law designates the
members of this commission.
The assembly also passed a law pro-
viding that no woman or minor shall
be employed more than fifty-eight
hours week or more than ten hours
day. The idea is to prescribe maxi
mum week and day rather than def
mite hours when work shall begin and
end.