The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-08-05
.SCATHINC REPORT
ON STANDARD OIL
Commissioner of Corporations
Herbert Knox Smith, Makes
Report to the President.
STANDARD HAS RAISED PRICE
Profits Of Oil Trust Has Been
S7oo,ooo,ooo in Twenty
Four Years.

J" .ASiilA ~ IO4S, aug uSt4 a--SiBnif-
cant rcvcla lions arc made public to-
day In a report submitted to President
Roosevelt by Herbert Knox Smith.
Commissioner OF Corporations, concern
ing the operations OF the Standard Oil
Company. III a previous report the
means and methods of the Standard
were explained. The present report
sets forth the results of those methods
and the effect that they have had on
the cons,1ner of oil and on the profits
of the Standard OH Company. It deals
with profits and prices, showing Just
how the manipulation OF the oil indus
try by the Standard has affected the
pocketbooks Of the American people.
Commissioner Smith says: The stand
ard OIL Company Is responsible for the
course Of the prices Of petroleum and
It's products during the last twenty
five years. The Standard has consist
entity 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 ol.'
Has Raised Price.
The Standard has claimed that 1t has
reduced the price OF oil: that 1t has
been benefit to the consumer. and
that only. a great combination like the
Standard could have furnished oil at
the prices that have prevailed.
Each one of these claims says
Commissioners Smith. .Is disproved by
this report The increase in annual
profits of the Standard from 1895 to
1904 was over s27ooo,o0o. The report
says:
"rhe total dividends paid by the
Standard from 1882 to 1906 were
s5b1,922.9o4. averaging thus 2415 per
cent. per. year The dividends, how
ever, were much less than the total
earnings. 1t is substantially certain
that the entire net earnings OF tho
Standard In this period were at least
s790,ooo,O00. and possibly much more.
These enormous profits have been
earned on an Investment worth at the
time Of Its original acquisition not
more than s7500O,000."
Commissioner Smith says
Unfair C0lnpe tltion.
THE following facts are proven!
The Standard has not reduced margins
during the period in which It has been
responsible for the prices Of oil.
| During the last eight years covered
| by this report Gs9s to 1900 1t has
| raised both prices and margins. Its
domination has not been acquired oil
maintained by its superior efficiency
but rather by unfair competition and
by methods economically and morally
unjustifiable, The Standard has SUI
perior efficiency in running its own
business: it has an equal efficiency in
destroying the business Of competitors.
| 1t keeps for itself the profits OF the
| first and adds to Che monopoly profits
secured by the second. Its profits are
far above the highest possible stand
ard Of reasonable commercial return,
| and have been steadily increasing.
| Finally the history OF this great in
dustry Is d history of the persistent
use OF the Industrial methods, the eX-
action OF exorbtant prices from the
consumer, and the securing of exec ssive
profits for the small group Of men
who over a long series of years have
thus dominated the business"
In few days ano ther section of
their report will be made public, set
ting forth the Importance Of price