The Montgomery advertiser., 1907-08-05
STANDARD REPORT
HERBERT KNOX SMITH GIVES IN.
 TERESTING FACTS.
Says CDaims That Rockefeller Trust Has Reduced Price of Oil is Entirely Disproven by
 His lnyeotiv9tfOu

Washington. Aug. 4.-Significant re- lations arc made public today in a re- port submitted to President Roosevelt by Herbert Knox Smith. Commissioner or Corporations, concerning the opera tions of the Standard Oil Company.
 In a previous report the means and methods of the Standard Oil Company were explained. The present report sets forth the results of those methods and the effect they have had on the consumer of oil and on the profits of the. Standard oil Company. It deals with profts and prices, showing just how the manipulation of the oil in- dustry by the Standard has affected the pocketbooks of the American people.
 Commissioner Smith says:
 The Standard Oil Company is re- sponsible for the course of prices of petroleum and its products during the has consistently used its power to raise the price of oil during the last ten years not only absolutely, but also rel atively of cost of the user.
 The Standard has claimed that 1t has reduced the price of oil; that it 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.
 AdCu OI tHebc CidlHIS, says tuS Commissioner. lis disproved by this re- port"
 The increase in the annual profits of the Standard from 1896 to 1904 was over &27, 1000, ,00O, the report says: ' The total dividends paid by the Standard from 1882 to 1906 were $551,- 922,s04. averaging thus 2415 per cent per year. The dividends, however, were much less than the total earnings. r< L. ,A>A NnIY .<olv tire net earnings of the Standard from 1882 to 1906 were at least $790. 900. 900 and possibly much more.
 These enormous profits have been based on investments worth at the time of its original acquisition not more than s75. 1000, ,ooo.'
 In his letter to President Roosevelt transmitting the report. Commissioner Smith says:
 ''The following facts are proven: The Standard has not reduced margins dur ing the period in which it has been responsible for the prices of oil. Dur ing the last eight years covered by this report (189S to 1905) it has raised both prices and margins. Its domina- tion has not been acquired or main tained by it's superior efficiency. out rather by unfair competition and by methods economically and morally un justifiable.
 'The Standard has superior efficiency in running it's own business; 1t has an equal efficiency in destroying the busi- ness of competitors; it keep for itself the profits of the first and adds to those the monopoly profits secured by this second. It's profits are far above the highest possible tandard of req onable commercial return and have been steadily increasing. Finally. the history of this great industry is a his tory of the persistent use of the worst industrial methods, the exaction Of ex- orbitant prices from the consumer and the securing of excessive pronts Tor me small group of men who. over long series of years, have thus dominated business.
 In few days another section Of the report will be made pubhc' setting forth the importance of price disc-'m- ination in restraining the business or competitors and augmenting the pronts of the Standard.