Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-08-12

competition in this country. than in places
In which competition exists, are the essen
tial charges made by Commissioner Her
bert Knox Smith Of the bureau of corpora
tIons in his report on the petroleum in
dustry mads public today.
This IS the third report of the bureau on
the Standard Oil Company. and practically
completes its review of the operations of
that corporation Later it will publish the
results of its nvestigations in the midcen-
tinent field. and stin later in the California
field Thees two Investigations have been
under way for a long time. but 1t is said re-
cent developments In those sections have
made II advisable to defer the publication
of the bureaus data and conclusions for
several months at least.
It's Foreign Policy.
In the business of selling petroleum
products In foreign countries the price
policy of the Standard OIL Company has ap-
parently been to sacrifice the interests of
the American consumer for the purpose Of
securing the Standards foreign business.
which is a very important one," the report
states. I'm 1904 over IS per cent of the IL
Illuminating oil produced in this country
was exported of which the Standard ex-
ported about 81 per cent
The relative movement of oil prices as
distinguished from their absolute level has
shown for the last eight years a startling
disparity between the United States and
foreign markets, particularly from 1902 to
1905 The American price steadily ad
vanCed from 1897 to 1908 The New York
export price advanced much less up to 1903,
declining in 1904. and the Hamburg Ger
mani price shows practically the same
movement as the New York export price,
while the London price shows a steady de-
cline from 1901 to 1904 and very i'm
pOrtant drop during 1905 The course of
American and foreign prices In the last five
wa r. haS thou
greatly increased divergence, IN general the
American prices going up and the foreign
prices showing a marked decline.
18Th! more remarkable is the comparison
OF the absolute level OF prices (aS dlstin-
gu!shed from their mOvementJ of the United
States and foreign markets. The statistics
cured by a represe NATIVE of the bureau.
who visited the more important European
oil-consuming countries and secured accur-
ate and representative data
Comparison of Prices.
"tI should be noted In comparing abso-
lutte prices Of American with foreign mar
kets that a difference of about l cent per
gallon must be allowed for on account Of
the difference In the quality of oil sold in the
two markets, water-white oil being the
basis Of the American prices and standard
white the basis Of foreign prices Water
white oil Is worth about l cent more than
STANDARD white Therefore. 1 cent per gal
Ion should he deducted from the differences
between American prices and foreign
prices
\ table included in the report shows that
from June, 1893. to August, 1905, The aver
age monthly prices of refined petroleum in
the United States was 1913 cents per gal
Ion. while In Germany 1t was IS cents
These figures are secured after deduCtng
transport costs and duties on foreign oil
The difference in prices Between the United
States and England, Denmark and Belgium
Is nearly the same as applies to sales in
Germany. IN each case being about . cents
per gallon. In the case OF the Netherlands
the difference Is l cent, and in the ease OF
the orient the difference Is IS cents.
Really Significant Figures
again. II IS to be remarked that the real
ly Significant figures are the margins of the
respective prices above costs" the commits
sion says. The deduction Of the principal
elements OF cost throws into proper promT-
hence these great differences In prizes
From the prices may. therefore, be deduct
ed. drst. the price OF crude oil (using Penn
operating expenses of piping. refining and
marketing the oil, which amount to about
cents per gallon. With these deductions
for the respective periods above mentioned
the average German margin was l.66 cents
as compared with 1863 in the United States
the United Kingdom margin was GA cents
as against 1. 81 in the United States. and
the other countries mentioned-Belgium
Holland Denmark and the orient-show
siutiar enormous diSparitieS. Even after
further subtracting l cent from the Ameri-
can margins to allow for difference in quail.
fly. they are still from one and a half Ia
\ three times as high as the foreign margins
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