The Roswell daily record. [volume] (Roswell, N.M.) 1903-current, 1907-08-07

Washington, D. c., Aug. g. The
following letter accompanied the re-
port of the Commissioner of Coropo-
rations, which was delivered yester-
day to the Department of Labor and
Commerce:
Department of Commerce and Labor,
Bureau of Corporations, Washing
ton, August S, 1907.
Sir have the honor to submit
herewith the part of the report on
the oil industry that deals with prices
and profits.
From the point of view of the pub
lie this is one of the most important
parts of the report. Previous reports
on this subject-on the Transports
ton of Petroleum" and on the 'sPo-
sition of the Standard Oil Company
in the Petroleum Industry"-have
dealt chiefly with the methods used
by the Standard Oil Company, the
dominant factor in the industry, to
secure and maintain that domination,
and nave described the extent and
character of its control; that is to
say, the facts already made public
have had to do with means and meth
DDS. The present report, on the other
hand, sets fortn the results of such
methods and the effect thereof on the
consumer aad on the profits of the
Standard Oil Company.
shape of prices. They must be stated
in the form of tables and computa-
tions, and the facts thus presented
may of themselves seem abstrtise
and uninteresting. But from them are
deduced more certainly than from
any other form of evidence the con-
clusions showing the definite policies
and tendencies of one great Industrial
combination having a serious impor-
tance to the public because affecting
the conditions of living. The funda-
mental tendencies thus displayed
throw light on the great problems of
industrial combinations in which the
country is especially interested.
The Standard Oil Company is re-
sponsible for the course of the prices
of petroleum and its products during
the last twenty-five years. A former
report demonstrated that this COM
pany has maintained it's dominant po-
sition since 1874. The present report
first sets forth with great complete
ness the course of such oil prices du-
ring the more recent period, practi-
cally for the last ten years, long af-
ter the control of the Standard was
complete and the industry had be-
come well established. 1t then shows
roughly the price history for the en-
tire period from 1866, or practically
since the beginning of the industry.
This gives an opportunity to COM
pare the course of prices during the
earlier competitive period with the
course of prices during the later mo-
nopolistic period. 1t shows what these
prices actually have been. 1t also
shows that they would have been
lower during this later period under
normal competitive conditions and
in the absence of any such overshad-
owing combination as has actually
existed.
These prices show directly the eff
feet that the existence of this combi-
nation has had upon the consumer,
and also the results that have ae-
crued to the combination itself by
way of profits. We can thus arrive
at Just conclusions as to the way in
which the Standard has used its
great Industrial power.
The Standard has repeatedly claim
ed that it has reduced the price of
oil; that it has been benefit to the
consumer, and that only a great com
bination like the Standard could nave
furnished Oil Mt the prices that have
prevailed.
Each one of these claims is dis.
proved by tais report
The Standard has consistently us,
ed its power to raise the price of oil
duriag the last ten years. not only
absolutely but also relatively to the
lcost OF crude Oil.
The statistical basis for This con
Iclnsion is very broad. founded upon
Il vast number of prices directly col