The Montgomery advertiser., 1907-08-07

were $s1, 1900, 900, or an increase of more than s47,000,o00 over 1898. and probably nearly as great an increase over 1897 and 1893.
 Standard Abuses Power.
 This enormous increase in the prof its of the Standard in recent years re- presents an addition to profits which already in 1897 and 1898 were exorbi- tant It Is clear, therefore, that the Standard oil Company has taken ad- vantage of it's monopoly power to in crease prices enormously during the last few years.
 'The total amount of dividends paid by the Standard from 1882 to 1906 was $551. .9229O4. 50, or an annual average Of $22,O77,O00. The average amount of trust certificates or stock outstanding during the period was s91, ,4S4.574. fhs dividends thus averaged 241b per cent per year.
 '1Gstimating the profits for the years fop which accurate returns are not available, the total amount of divi- dends for the entire period is about $7S0, 100000.
 "These enormous profits have been based on an investment worth, at the time of It's original acquisition, not more than $75,000.000."
 "Waters-Pierce" a Gold Mine.
 The profits of the Waters-Pierce oil Company, a Standard concern are dis cussed. Of this corporation the report says
 s'The capital stock of the Waters Pierce Oil Company for many years has been S4O0,00O It's profits during re- cent years have increased with enor- nous rapidity. In 1898 the profits were at the rate of 256 per cent. on the cap itaI stock. Tn 1904 the profits were over 67O per cent. of the capital stock
 stnndard's Claims Untenable.
 In discussing the real sources of the Standards power, the report says
 "The representatives and defenders Of the Standard oil Company as correl- alive of their unwarranted claim that it has been the cause of the reduction in prices, make the further claim that the Standards s domination Of the inous- try today is due to she fact that It furnishes products at reasonable prices. and that the less efficient independent concerns are unable 70 extend their business because they cannot afford to sell so cheaply,' Government is Defied. It refuting the claim the Commits sioner says that the Standard takes ad- vantage of its competitors by refusing to transport oil through is pipe lines or by charging exorbisant rates for the service, in defiance Of Federal law; That railroad discrimination and secret rebates added to the illegal advantages held by the monopoly and, further, that the Standard, by bogus independ- ent concerns, hoodwinked the public into buying trust gooGs at prices de- liberateIy put down beyond the reach of it's honest competitors.
 In concluding his report the Com missioner arraigns the oil company as follows:
 Thus the Standard maintains bogus independent companies, and thereby is able to escape the disadvantage due to antitrust sentiment. as well as to cut prices to the particular customers of competitors without mourning the fur ther loss of cutting prices 10 the en- tire trade in the locality.
 Again, the Standard maintains an elaborate system of espionage on the business of independent concerns, in particular securing almost complete re- ports of their receipts of shipments of oil by brfbfng railroad employees. "Other less important methods of un- fair competition pursued by the Stand ard are the giving or short measure and deception regarding quality sold. Holds Sway By Unrairness. 'rWithout railroad determinations and unfajr methods of competition the Standard could never ave maintained l is great proportion of the oil business in the United States while al the same them extorting such immense profits from the American consumer. The claim of the Standard that its control ofy the business is due to it's ability to maintain low prices because of superior efficiency is a complete misrepresenta- ton of the facts"