The Marion daily mirror. (Marion, Ohio) 1892-1912, 1907-08-05
On Standard Oil Co.'S
Methods Is Submitted
TO THE PRESIDENT.
II. X. Smith, Commissioner of Cor.
pOratiOns, Araigns the MOnOp-
oily in SCathing Words.

Washington, Aug. 5.-Significant
revelations are made public in re-.
port submitted to President Roosevelt
by Herbert Knox Smith. commissions
er of corporations concerning the
operations OF the Standard Oil Co.
In a previous report methods of the
Standard we're explained. The pres.
ent report sets forth the results of
those methods and the effect they
have had on the consumer of oil and
on the profits of the Standard Oil Co.
II deals with profits and prices, show.
ing just how the manipulation OF the
oil industry by the Standard has af.
fected the pocketboOks of the Ameri-
can people.
Commissioner Smith says: "The
Standard Oil Co. is responsible for
the course of prices of petroleum and
it's products during the last 25 years.
The Standard has consistently used
its power to raise the price of oil dur
ing the last ten years, not only abso-
lutely, but also relatively to the cost
of crude OIL"
The Standard has claimed that It
mas ltuuitu Nht llNf vi OIL lHdI IL
has been a benefit to the consumer,
and that only great combination like
the Standard could have furnished
oil at the prices that have prevailed.
Each one OF these claims" says
Commissioner Smith, "is disproved
by this report" The increase in an
nual profits OF the Standard from 1896
to 1904 was over $27OOO,OOO The re.
port says:
"The total dividends paid by the
Standard from 1882 to 1906 were
S551 ,922, ,904, averaging 2415 per cent.
per year. The dividends, however,
were much less than the total earn
ings. It is substantially certain that
the entire net earnings of the Stand.
ard from 1882 to 1906 were at least
$3.50, 100000 and possibly much more.
These enormous profits were
based on an Investment worth at the
time of its original acquisition not
more than $4,000, 900"
In his letter to President Roosevelt,
transmitting the report, Commission.
er Smith says:
"The following facts are proved:
The Standard has not reduced mar.
gins during the period in which Il
has been responsible for the price of
oil. During the eight years covered
by this report (1S9S to 19O5) II has
raised both prices and margins. It's
domination has not been acquired or
maintained by its superior efficiency,
but rather by unfair competition and
by methods economically and morally
unjustihable. The Standard has su.
perior efficiency in running its own
business; it has an equal efficiency in
destroying the business of competi.
tors. It keeps for itself the profits of
the first and adds to these the mo.
nopoly profits secured by the second
Its profits are far above the highest
possible standard of reasonable com
mercial return and have been steadily
increasing. Finally, the history of
this great industry Is history of the
persistent use OF the worst industrial
methods, the eXaction of exorbitant
prices from the consumer, and the Sc,
curing of excessive profits for the
small group of men who over a long
series of years have thus dominated
the business"
In few days another section OF the
report will be made public, setting
forth the importance of price dis
elimination in restraining the bust
ness of competitors and augmenting
the profits OF the Standard,