The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1907-08-09

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From the point of view of the pubic
the subject of prices and profits are TWO
of the most important parts OF TINS report.
Previous reports on this subject,on the
characterization of Petroleum" and on the
position Of tho Standard Oil Company in
the Petroleum industry dealt chief,
ly with the methods used by sse staadaIo
Oil company, the dominant factor in the
Industry. to secure and naintai that DOM
nation. and nave described the extent and
character of its control; that Is to say,
the facts already made public nave mad
to do with means and methods. The pres
emf rerort. On the other hand. sets forth
the result OF such methods ard the effect
thereof OH 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
ebstruse y untlteresting But from
them are deduced more certainly than
from any other form Of evidence the con,
illusions showing the definite policies ana
tendencies of one great industrial conbi-
nation having & serious Importance to the
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 ompan 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.
R~eeponeible for Prices.
The Standard has repeatedly claimed
tina it has reduced the price OF oil; that
1t has been 4 lenetlt to the consumer, and
that only a great combination Ike the
| Standard could have furnished oil at the
prices that nave prevailed.
Each one Of these claims is d!sproved BY
this report.
The Standard has consistently used its
power TO raise the price OF oil during the
last ten wears. not only absolutely but also
| relatively to the cost of crude oil.
The average margin between PennsNl-
| wanna crude OIL and the Illuminating oil
sold by the Standard throughout the coun-
September. 1897. TO the end of 1883. was
SIS cents per gallon: from 1900 to 1902. in.
elusive, 6 cents per gallon: and from 1876;
to June, 1909. &c cents. or an increase OF
l.3 cents during these eight years. Wher
1t is remembered that from OF cent to
cent per gallon constitutes q 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.
| I$ut it must ba emphasized that a much
greater increase In total margin has talSer
/ pace in The case of the by-products thar
, in Illuminating oil. the most important q
which are Din the case of Fennsylvani:
+ crude) gasoline. iubr.catinE oil. and paraf
lin wax Including the margins for these
/, b~y-prodIcts With the margins for illumi
mating Of. so as to give 4 series of aver
age margins for the combined four prod
ucts, weighted according to the RESPECTIVE,
quantities produced. the increase n mar
gins for this recent period IS still more
conspicuous. Thus. the relative averag,
margin for the four products combined fol
the years 1898 and 1890 was &C cents: FOL
1860 to 1902, ~ cents. and from 1908 to June
1905, sd cents. or an increase Of is cents
Fully as Conspicuous.
Substantially the same conclusions a:
to the increase of prices appear in tn,
margins for Lime crude. Tho increase II
its margins is fully as conspicuous a!
for Pennsylvania rude. The relative ay
erage margin for the combined product.
OF Lima crude for the years 1895 and 1Sq
was CT cents; for 1900 to 1902 IL cents
from 1903 to June. 1908. rs cents. or an in
crease of IT cents for the eight years.
TIL tremendous Importance Of the in
crease IN margins can be fully appreciated
only by consideration OF the enormou.
output of the Standard. The average in