East Oregonian : E.O. (Pendleton, OR) 1888-current, 1907-08-13

L
Result of Supply and Demand.
Washington, Aug. lin his re-
port to President Roosevelt on the
petroleum industry and practices Of
the Standard Oil company, Commits
sioner of Corporations Herbert Knox
Smith says in part:
In the business of selling petrole-
um products in foreign countries the
price of the Standard OIL company
has apparently been to sacrifice the
interests of the American consumer
Tor the purpose of securing the STAN
dard's foreign business, which is n
very important one. In 1904 over So
per cent of the illuminating oil produc-
ed 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 foreign mar
kets, particularly from 1902 to 1905.
The American price steadily advanc-
ed from 1897 to 1908. The New York
export price advanced much less up
to 1908, declining in 1904, and the
Hamburg Germany price shows
practically the same movement as the
New York export price, while the
London price shows steady decline
from 1901 to 1904 and very inn
portant drop during 1905.
The course of American and foreign
prices in the last five years covered
by this report has shown a greatly
increased divergence, in general the
American prices going up and the for
eign prices showing a marked decline.
Still more remarkable is the COM
parison of the absolute level of prices
Gas distinguished from their move
menD of the United States and for
eign markets.
Monthly Prices Compared.
1t should be noted In comparing alb
solute prices of American with for
eign markets that a difference OF
about cent gallon must be allow
ed 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
cent more than standard white. One
cent gallon should be deducted
from the difference between Ameri-
can prices and foreign prices.
The following summary statement
shows The averages of the monthly
prices for the periods specified after
deducting costs and duties:
Average United States price
(June, 1903, to August, 1860 10 q
Average German price (June,
1908, to August, 1905). ).... ia
Excess of United States price
Cess cent? ....:....r.... 2 Q
Average United States price Jan
uary, 1903. to August, 1900. 10
Average English price (January,
1908, to August, 19O5). ..... ia
Excess of United States price
less / cent? 2.2
Average United States price (Oc-
tober, 1903. to August, 1905) 10. 4
Average Danish price October,
1908, to August, 1905). ... Ia
Excess of United States price
I less | cent? 2
Average United States price (Sep-
tember, 19O5) ............. 90
Average Belgian price (Septem-
Der, 1900 ................. GO
Excess of United States price
Oess l cent? ............ / /
Average United States price Sep
tember, 1900 .............. "a
Aveage price in the Netherlands
(September, 1900 ........... 10
Excess of United States price
(leSS 1 cent? ............... u
Similarly for the leading oriental
markets.
Average net price in United States
(January, 1903, to May, 1905) S.4
Average net price in orient (Jan-
uary. 1903, to May, 1900 ).... 4 8
Excess of United States price
OeSs ! cent? -. 2 3
Not Case of Demand and Supply
During 1904 and 1905. period
WIN the Standard claims that an
oversupply existed, that company &C.
tually took large quantities of oil in
Russia to supply its trade in Europe
and the orient. During 1904 1t ship
ped from Russia over 100000 bar
rels of illuminating ol for distribution
In European and Asiatic countries. 1t
has secured large crude production
in Roumania and has established re-
fineries there and in other countries
for refining foreign crudes.
1t is perfectly evident that the
Standard has not always been con-
cerned with maintaining the export
trade in American Illuminating oil,
but has been solely interested in MAIN
tanning its own domination in the
markets of the world, frequently at
| the eXpense of the TTnifad Gtafaa