The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1907-08-15

Increase as Monopoly
Strengthens.
Washington, Aug. 14.-That the
Standard Oil company holds up its
American patrons in order to
maintain it's monopoly in the old
world is the most striking charge
made by Corporations Commits
sioner Herbert Knox Smith in an
other section, made public today,
of his report to President Roose-
welt on the petroleum industry Of
the United States.
In addition, Mr.. Smith charges
the Rockefeller trust with pos
sessing a price discrimination sys-
tenn which provides for a higher
rate for oil in sections of the
United States where the trust has
complete monopoly and for a low
er rate where there is competition.
The commissioner says:
In the business OF selling petroleum
products in foreign countries the price
policy of the Standard Oil company has
apparently. been to sacrifice the interests
OF the American consumer for the pur-
pose of securing the Standards foreign
business, which is a very important one.
In l9o4 over So per cent. of the illuminating
oil produced in this country was exported,
of which the Standard exported 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
foreisn markets, particularly from 1902 TO
vanced from 1897 to 1903. The New York
export price advanced much less up to
1903. declining in 1904, and the Hamburg
CGeralan) price shows practically the same
movement as the New York export price,
while the London price shows a steady de-
ant drop during 1905. The course of Ameri-
can and foreign prices in the last five
greatly increased divergence, in general
the American prices going up and the
foreign prices showing a marked decline.
Still more remarkable is the comparison
of the absolute level of prices (as distin-
guished from their movement) of the Unit.
ed States and foreign markets. The sta
were secured by a representative of the
bureau, who visited the more Important
European oil-consuIning countries and Sc
cured accurate and representative data.
Monthly Price Averages.
1t should be noted in comparing abso-
lutte prices of American with foreign mar
kets that a difference of about / cent per
gallon must be allowed for on account of
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 1 cent more than
standard white. Therefore, I cent per gal
lon should be deducted from the differ
ences between American prices and for
eisn prices. The following summary state
ment shows the averages of the ..onthly
prices for the periods specified after de-
Average United States price Dune 1903.
to August, 1909 lO.3
Average German price Dune, 1853. to
Excess of U. S. price Ness l CENT?. 20
Average United States price January,
A lye = &c A hnggIish, i Price Ganuary, 1908 .1o,5
to August, 1909 rs
Excee~ of u. S. price Gcss cenD.....2.2
Average United States price October,
1868, to August, 1900 10. a
Average Danish price October, 1908, to
& l9oa) 7.2
Excess of L. S. price Qess / CENT?. %
Average United States price 6septem-
Average ver r ssVY Relgian price iseptember, 1905, 81
Excess of U. S. price Cess cent?. 10
Average United States price septem-
Average price in the Netherlands Sep
TENDER, 1900 10
Excess of u. s. price Qess l cero... 10
Similarly for the leading oriental mar
kets:
Aysrage net price in United States
Average net price in Orient January,
1866. 10 May. 1900 Observation-Disclosures. As
Excess of U. 5. price Cess / cenp.. +. rs
Again, it is TO be remarked that the real
ly significant figures are the margins of
the respective prices above costs. The de-
duct,on of the principal clements of cost
throws into proper prominence these great
differences in prices. From the prices
may, therefore, be deducted. first, the price
of crude oil (using Pennsylvania crude as
a basis). ard second, the opera ting ex-
penscs Oh piping, refining, and marketing
oil, which amount to about ? cents per
gallon. With these deductions, for the re-
spectivc periods above mentinrcd. +ho a.
erage German margin was 1.66 cents. as
compared with 4.63 in the Unitea .t.u..
the United Kingdom margin was 1874
cents, as against 4.s4 In the United States:
and the other countries lncnttoned-Bel-
GUM. Holland, enmarl and the Orient
show similar enormous disparities. Even
after further subtract:ng / cent from the
a american m1 i fhs . ans to tn, al Icy, i * difference
as high as the foreign margins.
These remarkable determinations in IA
vor Of foreign markets at the expense of
the American consumer have naturally
called forth excuses from the apologists Of
the Standard. They have attempted to
III I'd u ttS bhAtA S'7SioiA Stidl liz recent e
cline in prices OF American Illuminating oil
abroad was recessf;ated by an oyersup-
ply Of that product. The have also claimed
that there has been severe competition
against the American product from the
oils OF Russia and other foreign countries,
and that the reductions In export and for
eign prices were necessary to retain the
American export trade.
No Over-Supply.
Neither of these arguments is vel,
founded There was no over-supply OF
illuminating oil during the years 1894 ard
1905. at which tirle foreign prices were be-
ing severely cut. The exports from the
JFnited States during tMI were less than In
le01 and 1902. The export4 from the Ave
important oil-produci1lg countries com
hinesi show little more Than a normal IN
crease. The worlds production in 1905 was
less than in 100. TIE exports from the
I'VE principal countries combined in 100:
wore n,ore t.,an G rcr cert, less tl:an In
1895. There was an actual deciire in the
total imports intn The t.n.:ed kinRGoM