Arizona republican., 1907-08-05
The Report of the Commissioner of Cor
pordtions On This Industry
II Deals Largely With the Affairs of the Standard
Oil and the Methods by Which 1t Attained Its
Supremacy.

claim that the Standards domination
of the industry today Is due to the fact
that it furnishes products at reason
able prices and that the less efficient
independent concerns are unable to ex-
tend their business because they can
not afford to sell so cheaply.
"One sufficient proof that this argu-
Inent is not well founded is found in
the statistics regarding price discrim-
ination which will be presented later.
1t will be shown that the prices are
very much lower in places where in
dependent concerns sell oil than in 9TH
er places. 1t follows that the inde-
pendent concerns are able to live on
the basis of the prices which they Sc
cure in their particular markets, they
could make large profits If they could
market their oil throughout the coun-
try and obtain average prices as high
as the average obtained by the Stand
ard on its own business.
"A further proof that, on the aver
age, the Standards prices are not low
er than those which independent con-
Germs can afford to make is found in a
comparison of the costs of independ-
ent concerns with the Standards costs.
The costs of the present independent
concerns in the oil industry plus a nor
NAL rate OF profit are less than the
costs OF the Standard plus its extor-
tionate profits. This fact. which is
clearly demonstrated in this report,
shows that if the country were sup
piled with petroleum products wholly
by smaller competing concerns prices
rnrr1A h.
ard charges on the average. 1t means
that the Standard has pocketed the
profits arising from its economies and
large additional monopoly profits be-
sides''
The operations of the waters-Pierce
company are described in part as fol-
lows:
The only individual Standard con-
Germ regarding whose profits full infor-
nation is available is the Waters
Pierce Oil company. This concern, as
already stated. does in the United
States only marketing business. but
in Mexico ii is engaged in the refining
of oil as well as in marketing. The
records of the company make it possi-
BILE to distinguish its profits on the
business in the United States from
those in Mexico.
The capital stock of the Waters
Pierce oil company for many years
has been 100000. Its profits during
recent years have increased with enor-
nous rapidity. In 1898 the profits were
at the rate of 256 per cent on the capi-
tai stock In 1904 the profits were
over go per cent on the capital stock
The capital stock of the Waters
Pierce Oil company is much less than
its actual investment; the additions to
its investments. however. have been
of the profits.
THE rate of the profit of the Waters
Pierce company on its total investment
was lowest (23.3 per cent? in 1896. 1t
increased in almost every year until in
the first six months of 1904 the profits
were at the rate of Az per cent per
year. The rate of profit on the in
vestment in the business in the United
States was 19.1 per cent in 1896 (being
reduced by excessive competition in st.
Louis), while from 1900 to 1903 IL rang
ed from 40 to As per cent per year.
The actual amount of profit on the
-otal business in 1903 Cthe last full year
'overeD was s2.699.s1s. the net invest
nent being s6,22s.s32. The profit In the
United States in that year was sl,332.-
AZ on an investment of S32s5. .352. (