The news-democrat. (Providence, R.I.) 1906-1909, 1907-08-12

has used the profits made at home tc
maintain IT'S position abroad"
The Standard OIL company Is thus ar
raigned by Commissioner of corporations
Herbert Knox Smith In report 70
President Roosevelt, recently made public
rhe report Is the third OF series In
which the methods OF the company have
been attacked mercilessly. Mr.. Smith
charges thai the american consumer
has been severely Disseminated against
tor the purpose of maintaining. not the
dominance of American export trade,
put the dominance OF particular com
bination which has used Its power fire.
suently and conspicuously TO the dis
advantage OF the American public
Mr. Smith denounces the Standard
,cathinciy and declares by direction OF
NE president some OF the detailed evil
fence regarding price discrimination OBJ
sained by the bureau Is withheld In
view OF the proceedings OF the attorney
reneral against the company. and that
the same Is true OF evidence regarding
rher unfair practices. the most i'm
portant OF which are the maintenance OF
bogus independent companies. espionage
bver the business OF competitors. es-
pecdally by brib3ng railway employees TO
disclose their shipments, and deception
Is TO the quality OF oils sold
EXTRAORDINARILY CONDITION.
The commissioner asserts that still
more important and extraordinary state
n affairs In the conditions OF prices in
HE United States exists than is
thown by comparison OF prices
here and abroad. There has been
hought TO light, he says, remarkable
ystem Of determinations In prices for
she same products In different localities
throughout the country. and ''it Is evident
hat the Standard charges price which
, proportionate TO the extent OF Its mon
ppoly IN a given place.. and reduces prices
m proportion 20 the degree OF competition
which n may meet"
The commissioner announces the I'M
portant discovery that The Standard OH
company has practically monopoly or
he trade in iubrfcating oil for the use
u railroads. certainly over rs per cent.
n the business, which amounts TO about
H5Oo.0 900 a year. and says:
''In an the evidence gathered on this
vubject there Is nothing TO show any
reason why the railroads OF the country
mould pay the Standard this excess OF
100000 per year except the suggested
connection between these contracts and
he distribution Of freight traffic by the
standard OIL company or the possible
weight OF financial influence.
"The Standard has repeatedly assert
ed that combination. as illustrated by
Its own history, is n great benefit to
the public. In reducing costs and con-
seuuently prices" says Mr.. Smith. ut
may readily be that I'm some industries
combination has had these beneficial
results. II Is probable that the Stand
ard. by reason OF It's undoubtedly great
efficiency. could. had II been content
with reasonable profits, have made
prices TO consumers lower than would
have been possible for smaller con-
Germs. and thus have maintained Its
great proportion OF the business by
wholly fair and legitimate means.
PUBLIC OPPRESSION.
"The Standard Is. however. most
example OF precisely the
opposite OF a combination which main
tains a substantial monopoly. not by
OF service any by charg-
ing reasonable prices. but by unfair
methods OF destroying competition: a
com mbination which then uses the
power thus unfairly gained TO oppress
the public through wholly extortionate
prices IL has raised prices instead
of lowering them. II has pocketed all
the advantages Of Its economies in
stead of sharing them with the pub
lie. and has added still further mo-
nopoly profits by charging more than
could sell for II the Standard allowed
them the chance.
some of the unfair and illegal
means by which the Standard has been
able TO do this have been proved In
the reports already published by this
bureau, namely, railroad discrimina-
tions. de-reaching In extent and
enormous in degree; failure TO per-
form the duties of a common carrier
in pipeline transportation. and un-
5ust methods OF destroying competition
lxx hna M vi ifnfp N a
tfon OF the most fragrant character.
I'm 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 purpose OF securing the Stand
ards foreign business. which Is very
important one. In 1904 55 per cent OF
the illuminating oil produced in this
country was exported. OF which the
Standard exported about 81 per cent.
STARTLING DISPARITY.
"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 advanced from
1897 TO 1908. The New York expor
declining In 1904. and the Hamburl
(German) price shows practically thu
same movement as the New York ex
port price. while the London price
shows a steady decline from 1901 4
1904 and a very important drop dur
ing 1905. The course OF American anC
foreign prices in the last Ave yeari
covered by this report has shown {
greatly increased divergence. I'm gen
eral the American prices going up ant
the foreign prices showing a marked
decline"
Mr.. Shows by statistics for 1903. 1so'
and 1906 that the company's margins ir
the United States were from III TO times
as large as those in Europe and the ORR
ent.
''The conditions OF supply therefore do
not excuse the extraordinary decline In
foreign prices In 1906 and the resulting
against the American cou-
sumer. This decline was not necessitated
by any oversupply Of oil. In fact. the
movement OF prices was precisely the op-
posite OF that which would have been ex-
pected from the changes In supply.
The significance OF the extraordinary
differences In prices charged I'm many DIFF
ferent sections OF the country or In diff
ferent towns can be appreciated only IN
the light OF the fact that n very small
amount per gallon constitutes fair mar