The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-08-06
ANOTHER SEVERE BLOW
FOR STANDARD OIL
ITS DOMINION ACQUIRED BY
METHODS UNJUSTIFIABLE.
Conclusive Proof That Rockefeller 8
Great Trust by its Manipulation:
of Oil Industry, Has Wrung
Millions From Public.

Washington, Aug. 4.-Signifeant
revelations are made puble today in
report submitted to President Roose-
welt by Herbert Knox Smith, commits
sioner Of corporations, concerning the
operations Of the Standard Oil COM
pany. In a previous report the means
and methods Of the Standard were ex-
planned. The present report sets
forth the results Of those methods and
the effect they have had on the con-
sumers Of oil and on the profits Of the
Standard Oil company. It deals with
profits and prices, showing just how
the manipulation Of the oil industry
by the Standard has affected the pock-
ct books Of the American people.
Commissioner Smith says "the
Standard Oil company is responsible
for The course Of the prices Of petrol
cum and it's products during the last
twenty->ix years. The Standard has
consistently used its power to raise
the price of oil during the last ten
years, moi only absolutely, but also
re!alive]! to the cost OF crude oil.'
The Standard has claimed. that it
las reduced the price OF OIL: that 1t
has been a benefit to the consumer and
that only a great combination like the
Stan lard cold have furnished oil at
the prices that have prevailed.
s:Fach one Of these claims" says
E. :mmi<sicner Smith. lis 1isproved
by this ieport.' Tn, increase in an
nual rrofts. Of the Standard from
lIYt; to- 1904 was over 27,O00,60e.
The. report says:
"Ihc total dividends paid by the
Standard from 1882 to 1906 were
$551,92::.,904, averaging thus M.l5
per cent. per year. The dividends,
.,oweve.. were mrr'' less than he to-
.ai earn nes. It is substantially cer-
tam that the entire net Earnings OF
the Standard in this pel1od were at
least 500, 100000, a"G possibly more.
"Th:.se enormous profits aa>p been
based or an investment worth at the
time of it's origina! acquisition not
moro y,han s75,0o0,O0o.'
Commissioner Smith says:
:'Thc following facts are , owed:
The Standard has not reduced mar
gins during the period in which it has
been responsible for the prices Of oil.
During the last eight years covered
by this report (1S9S to 19O5), it has
raised both prices and margins. Its
dominion has not been acquired or
lraintaineA ty its sup"2io" efficiency,
but rather ty unfair competition and
by methods economically ;rd morally
un2ustifable. The Stan';:'S'! nas su-
perior efficiency in runrlH" its own
businas::; it has al equal efficiency i'll
destroying ;i1e business, Vi competl-
tors. Ii i;eeps tor Itself '1e profits OF
the first. and adds to these the mono
poly profits secured by the second.
Its profits are far above the highest
possible standard it !; reasonable c"nl-
mercial return, and have been steadily
increasing. Finally, the history OF
this great industry is history OF the
persistent use Of the worst Industrial
methods, the exaction Of exorbltant
prices from the consumer and the Sc
curing ofexcessiveprofts for the small
group of men who, over long ser1es
of years, have thus dominated the
business. 81
In a few days another section OF
the report will be made public, set
ting forth the Importance OF price
discrimination in restraining the
business Of competitors and augment
inc the profits Of the Standard.