The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-08-12


Washington, Aug. u.-Herbert Knox
Smith. commissioner of corporations, has
filed his report on the investigation Of
Standard Oil prices. accompanied by the
following letter of submittal:
Department OF Commerce and Labor.
Bureau of Corporations. Washington. Aug
II, 1907.-Sir: In the business of selling
petroleum products in foreign countries
the price policy of the Standard OIL com
pany has apparently been to sacrifice the
interests OF the American consumer for
the purpose of securing the Standard
foreign business, which is a very import
ant one. In 1904 over % per cent of the
Illuminating oil produced in this country
was exported of which the Standard eX-
ported about 81 per cent.
The relative movement of oil prices as
distinguished from their absolute level
has shown for the last eight years a
startling disparity between the United
States and foreign markets. particularly
from 1902 to 1905. The American price
steadily advanced from 1897 to 1903. The
New York export price advanced much
less up to 1903. declining in 1904, and the
Hamburg tGerman) price shows pracUl-
cally the same movement as the New
York export price. while the London
price shows steady decline from 1901 10
1904 and very important drop during
1895. The course of American and foreign
prices i'll the last five years covered by
this report has shown greatly increased
prices going up and the foreign prices
showing marked decline.
Still more remarkable is the cOmpari-
son of the absolute level of prices ias
distinguished from their movement OF
the United States and foreign markets.
The statistics obtained for these cOmpu-
tauons were secured by a. representative
of the bureau who visited the more i'm
portant European oil-consuming countries
and secured accurate and representative
data.
Difference in Quality.
1t should be noted in comparing absO-
Lutte prices of American with foreign mar
kets that a difference of about 1 cent
per gallon must he allowed for on account
of the difference in the quality of oil
sold in the two markets. water white oil
being the basis Of American prices and
standard white the basis of foreign prices.
Water white oil is worth about 1 cent
more than standard white. Therefore.
cent per gallon should be deducted from
the differences between American prices
and foreign prices The following sum
mary statement shows the averages of
the monthly prices for the periods speci-
fled after deducting transport costs and
duties:
Average United States price tJune.
1903 TO August. 1850 ...................-l0 Il. 5
Average German price June 1908, to
August, 1900 ACKNOWLEDGEMENTS. '-a
Excess of L. S. price 0ess l cent?. 20
Average United States price january.
1893 to August, 1868 ....................f0 )
Average English price January. 1893,
to August 1$5)..--.-- --......--......-. "a
Excess of I. S. prices 0ess cent?. -
Average United States price October,
1858. to August, 1905D ....................1O. 1
Average Danish price October. 1898, TO
August, 1Sooi -------------.---....-.-.- -
Excess of [. S. price Qess 1 cent. p
Average United States price (Septem-
Der, lJU5) .....-...-.-...--. 80
Average Belgian price september,
lN0) ...-.. ACKNOWLEDGEMENTS. 81
Excess of L. S. price dess cent. 19
Average United States price (Septem-
Average price in the Netherlands,
september. 1861 ACKNOWLEDGEMENTS. 10
Excess of [. S. price dess cent? 10
Similarly for the leading Oriental mar
kets:
Average net price in United States
January, 1903. TO May. 1867. ......... Sc
Average net price in Orient January,
1903. to May 1905D -..................... f. s.