The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1907-08-15
OIL OCTOPUS ROBS
AMERICANS TO KEEP
EUROPEAN VICTIMS

Gus decline during 1906. notwithstanding
ously. tt imports into Germany during
1904 were almost exactly the same as dur
Ing 1903, and the imports during 1905 fell
declined very materially in both years.
The conditions of supply therefore d.
not excuse the extraordinary decline in
elimination against the American con-
sumner. This decline was not necessitated
by any o%versupply of oil: In fact the
posite Of that which would have been ex-
pected from the changes in supply.
The falsity Of the Standards arguments
during 1904 and 1905, a period when-sthe
Standard claims that an o~versupply ex-
listed, that mpan actually took large
trade in Europe and the Orient. During
1904 1t shipped from Russia over a million
and a half barrels of Illuminating oil for
tries. it has ecured large crude produc-
ton in Roumania and has established re-
fineries there and in other countries for
e eyIaenf th hate' tbe Standard u ha, Is not pe a1wayy
been concerned with maintaining the ex-
port trade In American illuminating oil,
taining its own domination in the markets
of the world, frequently at the expense of
the United States
Supply From the United States.
1t is true that during 1904 and 1905 the
Standard met new competition in foreign
markets, but Its new competitors We're
largely 8. group Of concerns which drew. a
considerable part Of their supply from the
United States itself.
charged such prices as 1t could thereby
extort, and the American consumer has
had to pay these prices. Meeting cornpe-
consumer enormously lower prices. and 1t
has used the profits made at home to
maintain its position abroad, so that the
American consumer has been severely dis
eliminated against for the purpose Of
maintaining, not the dominance of Ameri-
can export trade, but the dominance of
a particular combination which has used
its power frequently and conspicrously to
the disadvantage of the American pub
lie.
A still more important and extraordi-
nary state of affairs appears in the con-
ditions Of prices in the United States. A
study OF the S~tandard's price policy has
brought r to li e b, as . sn9wn IN Il, this d3asrte eRort,
tons in prices for the same products In
different localities throughout this coun-
try. 1t is evident that the Standard
charges a price which is proportionate to
the extent of it's monopoly in a given
place, and reduces prices in proportion to
the degree Of competition which it may
meet.
1t is to be emphasized that there is sub
stantially no general market price for
petroleum products especially illum!nat-
Illuminating oil and gasoline in the United
States directly to retail dealers at their
own ey towns gon s dsliveT ed mn mainly MY by tank K
a rule, purely local prices. This system
of distribution and price making puts it
in the power Of the Standard to vary its
out disturbing prices in other localities.
Fair Profit Margin.
The Significance &c .h xo.s,a DIFF
%ferences in prices charged in many differ
ent sections of the country or in different
towns can be appreciated only in the light
e o., ,1 1ne dact ihat a . very 1S, small ma lar amount o9 per
on the investment in refining and mar
keting of petroleum products. A differ
ence Of about Z mills per gallon in the
price of Illuminating oil may mean a diff
ference between a profit Of 10 per cent on
investment in refining and marketing and
no profit at all. But the actual differences
in the Standards prices among competi-
tive and noncompetitive towns and areas,
after making all allowances for differ
ences in cost of production and distribut-
ing, often amount to several cents per
gallon. A combination which can com
mand the profits that these figures imply,
over lorge areas, has therefore obviously
q tremendous weapon when It enters on
aggressive price cutting against independ-
ent concerns.
The most accurate and complete data
were obtained by the bureau on this sub
1ect directly from the records Of the
Waters Pierce Oil cmpany "a Standard
concern). The territory Of that company
~ 4 hoAiodo, ohla1lOIud, Idlan Ter
ritory, Texas and part of Missouri and
Louisiana, separated In these records into
seven divisions BY. the In 1900
Louis division to 4 cents per gallon in the
north Texas division. The first six months
of 1904 the prcfts were as follows: st.
Texas and Louisiana, 1.s cents: Missouri.
Is cents: Arkansas, rs cents; south Texas
ss cents: central Texas, So cents; north
range Of profits and, of course, a cores
pond.ngly extreme range of net prices.
Similar inequalities in local prices appear
IN the gasoline business of this company.
Startling Determinations.
The data from other sources, mainly
from prices reported in December. 1874. by
over 5000 retail dealers Throughout tbe
country, show even more startling dis
examinations n prices. wholly ~unexpla.n-
able on ans. other theory than that Of the
differences in competitive conditions and
the use Of a monopoly power. These dis
EXAMINATIONS are shown in several ways.
Taking the average prlees for the several
appears n Delaware, TT cents per gallon
freight deducted. and the highest. In Colo
g a 49,; ~ cents per per gaslon, freight de-
of the difference in this case is due to
higher cost OF refining and marketing Of
the Colorado OIL; The difference in cost
can not exceed 33a cents per gallon. which
explains less than one-half of the total
difference of 81 cents difference in the
price. III several cthnr Rocky mountain
and Pacific coast states the average price
of Illuminating oil, less freight, for De-
cenlber, 1904. was over Is cents. as com
pared with II IN Delaware, freight de-
Quoted.
There is some difficulty In comparing
average state prices. even after deduct
ing freight rates, arising from the uncer-
tainty as to the relative cost of manufac-
turing the oil sold In different states. This
difficulty. however, may be avoided BY
comparing only those states which are
supplied from a single refinery or from a
group OF re1ineries using the same crude
Oil and having a substantial similarity of
| conditions.
Thus the range of state averages IN the
states on or near the Atlantic seaboard
Is very vide. In December, 1904, the aver
age price in Delaware. less freight, as al
ready stated. was ~ cents per gallon. In
Pennsylvania 1t was 81 cents, In New
York state 10 cents, in North Carolina
and New Hampshire 1913 cents part of
South Carolina la cents, Florida 12.S
cents. and part of Georgia supplied from
the same source 10 cents. all with freight
deducted. The figure for Georgia Is S 3
cents higher than that for Delaware.
California Cited.
In the area supplied from Lima, Cleve-
land, and Whiting. three refineries operat-
ING. under similar conditions, the prices,
freight deducted. range from SIS cents for
Ohio to 1871 cents for a part of Arkansas.
One of the MOTT striking instances is y