The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1907-08-05

tAI0 COMPARISON Oh domestic ana foreign
prices which will be presented later are
that, during the past few years at any
rate, the rate Of profit on the sales In
the United States has been very much
greater than on the foreign sales, and,
consequently, that much the greater
part Of the total of the company has
been derived from its domestic bust
ness. There are, however, no available
data by which to determine how much
Of the profit has come from that
source
The Bureau has secured information
by which 1t is possible to compute APP
proximately the profit per unit of pro-
duct and the rate of profit on invest
ment in the refining and marketing of
the oil produced by several Standard
refneries, the product Of which is sold
almost entirely in the United States. In
addition to the profit on the refining
and marketing of these products there
is further profit in, the pipeline trans
portation Of the crude oil entering into
them.
The ref1neries for which such infor-
nation regarding profits is available
are those at Lima, Ohio; Whiting, Ind;
Neodesha, Kans.; Sugar Creek, Mo-,
| and Florence, Colo, The latter plant is
owned by the United OIL company, of
whose stock only II per cent is held
! by the Standard, but which sells all It's
product to the Standard, which makes
a heavy profit In marketing it. For
| each of these refineries, except that at
Whiting, the refining concerns them
| selves furnished the statements show
ing the cost OF the refining process and
| the yield of the several products from
the crude. The Whiting refinery uses
the same kind of crude as the Lima re-
f1nery. On account of its greater size
its costs are probably lower than those
at Lima, and the yields Of finished pro-
ducts, II anything, better. For this
reason it will not overstate the profit
on the Whiting business to assume the
costs and yields to be the same as at
| Lima.
Movement of Prices Since Beginning Of
| Industry.
The evidence thus far presented
shows clearly that the Standard OIL
| Company has greatly increased the
margin between the price of crude oil
and the prices of its finished products
during the past few years. These facts
alone are a sufficient condemnation Of
the Standards policy and prove that
It's profits are exorbitant. Neverthe-
less, the argument will doubtless be
put forward that, taking the history
| of the oil industry as q WHOLE the
| Standard has reduced prices and ben
Gifted the consumer. Representatives
and defenders of the Standard have re-
peatedly asserted that by reason Of its
extraordinary efficiency it has brought
prices to a point lower than coult
have been secured if the business hat
| remained In the hands of smaller con.
Germs.
1t is true that, taking the history o.
the industry as a whole las distin-
guished from recent years alone), there
has been a great decline in the mar
CINE between crude and it's finished
] products, The claim of the STANDARD
| is that it, and it alone, is entitled tt
the credit for that reduction.
This claim Of the Standard Oil is al
an extraordinary large one. 1t implies
first, that the improvements actual!
made in the methods of conducting tn
petroleum business have been chiefly.
not wholly attributable to the Stand
ard. 1t implies, second, that the Stand
ards efficiency is not only much great
ed than that of its present competitors
: but also much greater than could pos
/, sibly have been secured in the absenc
of such combination as the Standard
Had there been no such Overwhelming
combination able by unfair competltiv
methods and otherwise to prevent tn
development of other concerns, the in
} dustry would to-day almost certainl
: be conducted chiefly by o number 0
large competing concerns each muc
5 more efficient than the present inde
: pendents. Thirdly, and most important
/ | the Stanard's claim implies that the re