The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1907-08-08

port:
the subject of prices and profits are two
Of the most important parts OF this report.
Previous reports on this subject-on the
Transportation of Petroleum and on the
position OF the Standard Oh Company in
ly Will, the methods used blythe. Standard
Oil company. the dominant factor In the
industry, to secure and maintain that dom
nation, and have described the extent and
character of its control; that is to say,
the facts already made publit have had
to do with means and methods. The pres
the result of such methods and the effect
thereof on the consumer and on the profits
of the Standard Oil company.
These results largely take the shape of
prices. They must be stated in the form
of tables and computations, and the facts
thus presented may of themselves seem
abstruse and embarrassing. But from
them are deduced more certainly than
from any other form of evidence the con-
illusions showing the definite policies and
tendencies of one great industrial combt-
public because affecting the conditions Of
living. The fundamental tendencies thus
displayed throw light on the great prob
lens of industrial combinations in which
the country is especially interesting.
The Standard Oil company is responsible
for the course of the prices of petroleum
and its product during the last twenty-five
years. A former report demonstrated that
this company has maintained Its dominant
position since 1874.
Responsible for Prices.
The Standard has repeatedly claimed
that it has reduced the price Of oil; that
II has been = beneft to the consumer. and
that only a great combina ion like the
Standard could have furnished oil at the
prices hat have prevailed.
Each one of these claims is d%isproved by
this report.
The Standard has consistently used it's
power to raise the price of oil during the
Ia CT TON N-an y c NOT nn1ya n hS61,1fe1v h,1t a lGn
relatively to the cost of crude oil.
The average margin between Pennsyl-
wanna crude oil and the Illuminating oil
sold by the Standard throughout the coun-
try, after deduct.ng freight costs, from
September, 1881. to the end of 1899, was
63 cents persgallon; from 1900 to 1902, in
to June, 1865, &C cents, or an Increase of
1.3 cents during these eight years. When
1t is remembered that from OF cent to /
cent per gallon constitutes a good profit
on the business. the meaning of an in
crease of 1.3 cents in the last eight years
covered by this report is evident, even as
applied to Illuminating oil alone.
But it must be emphasized that a much
greater increase in total margin has taken
place in the case of the by-products than
in illuminating oil, the most important of
which are Din the case of Pennsylvania
crude) gasoline, lubricating oil, and paraf-
fin wax. Including the margins for these
by-products with the margins for illumi
mating oil, SO as to give 4 series of aver
age margins for the combined four prod
Gcts, weighted according to the respective
quantities produced, the Increase m mar
gins for this recent period IS still more
conspicuous. Thus, the relative average
margin for the four products combined for
the Years 1855 and 1899 was Sc cents: for
1&5. S.4 cents, or All increase Of Is cents.
Fully as Conspicuous.
Substantially the same conclusions as
to the increase Of prices appear in the
margins for Lime crude. The increase in
for Pennsylvania crude. The relative ay-
erage margin for the combined products
of Lima crude for the years 1898 and 1899
was 81 cents; for 1900 to 1902, IL cents;
from 1903 to June, 1905. T.S cents, or an in
crease of II cents for the eight years.
The tremendous Importance OF the in
crease IN margins can be fully appreciate ted
only by consideration of the enormous
output OF the Standard. The average m