New-York tribune., 1907-08-12

average German margin was L6s cents. con-
pared with f63 in the United States; the United
Kingdom margin "a cents. as against 4S4 III
the United States; and the other countries men men
rionef-BelEium Holland. Denmark and the ORR
ent-show similar enormous clspariues Even after
further subtractnS cent iroI" ti,e - 80 -
margins allow for difference IN quaht% they are
still from ~ 20 times as high as the foreign
margins.
These remarkable determinations in favor Of for
eign markets al the expense of the American con-
sumer have naturally called forth excuses from
the ap0ogists of the Standard. They have at
tempted 20 the impression that the recent
decline in prices of American illuminating OIL
abroad was necesstated by an oversupply OF mat
product They have also claimed that there mas
been severe competition against. the American
product from the oils of Russia and other foreign
countries and that the reductions IN export aho
foreign prices were necessary 10 retain the Ameii-
export trade.
There was no oversuppy Of illuminating OIL our
ing the years 1904 and 1905. at which time foreign
prices being severely cut The exports from
the United States during 1904 were less than IN
1901 and 1902. exports from the hVe lnlpor-
tant oil producing countries combined snow Htt'e
more than normal increase. The worlds pro-
duction in 1905 less than in 1904 Inc exports
from the five principal countries comnineo IN a, lH'
than per cent less thah IN l',f.
There was actual decline in the total imports
into the United Kingdom during 1904 as compared
with the two preceding years. and sun more
conspicuous decline during 1900 Not"ItI5. aiiGI,e 1
this. the prices in England fell enormously Inc
imports Germany during 1904 were Almost tA
actly the same as during 1903. and the imports
during 1905 fell off considerably But the GERMAN
prices declined very materially in ooth years
The conditions of supply. therefore. do not eN-
c,lse the extraordinary decline in foreign prices III
1905 and the resulting discrimination against iI!e
American consumer This decline was hpt He''79
tated nv an oversupply of oil In fact. the move
ment of prices precisely the opposite OF thal
which would have been expected from the changes
In supply
MET COMPETITION ABROAD
The falsty of the Standards arguments is fur
demonstrated by the fact that during lS'4 ana
1895. q period when the Standard claims thal an
oversupply existed. that company actualN tooh
large quantities Of oil in Russia 10 supply It's Iidu
il, Europe and the Orient During 1894 ii shipped from
Russia more than a million and half barrels oi
illuminating OIL for distribution in European anu
Asiatic countries. II has secured large crude pro
ducton in Rumania. and has established reil"eiieS
there and in other countries for rehnlne Iois'sn
crudes It is perfectly evident that the standar" |
has always been concerned Win t1 ms Us
the exDort trade American illuminating OIL Out
has been solely interested in maintaining its own
domination in the markets OF the World Aeque"'''
at the expense of the United States
II is true that during 1904 and 1898 the standard
met new competition in foreign markets but is
new competitors largely a group OF cohce' il@
which drew a considerable part OF their supply
from the United States itself.
Having monopoly at home. II has chafeeu SUN
prices as it could thereby extort and the Amerl-
can consumer has had TO pay these prices ME-. Me-
ing competition abroad II has given the ioteie.
consumer enormously lower prices. and II mas U.s."
the profits made at home to maintain ITS poSilloh
abroad. so that the American consumer ~ hds -, -
severely Disseminated against for the purpose ii
maintaining not the dominance of American eA
port trade but the dominance Of a particular com
bination which has used its power ntque"u' "i'
coDsnicuo,sly to the disadvantage Of the American
public. =. ..a..
Of affairs appears in the conditions OF prices IN me
United States a study Of the Standard price ,
poCv has brought TO light, as SHOWN III thlS ie
mort A very remarkable system OF dlscTlhl!fatlo!s
in rrices FOR the products in dhereIi IocaIl-
ties throughout this country. 1t is eVldeht thaI
the Standard charges price whlch Is PFoi'ol 90
10 the extent Of its monopoly In given pate' a,.N
ra5,,ces prices in proportion to the degree OF COM
petition which il may meet 81
II s IN he ernphasized that there is substantially
no general market price for petroleum preouciS,
esneciaIly Illuminating OIL Ihe Stailuaru 80 ~, {
most of its Illuminating oil ana gasolene III Oe
I-r,ad states directly to retail dealers at their own
towns delivered mainly by tank wagons NJ, .
quently the prices are, as [ue, "a "a, ia max
in, nuts II in the power of the Standard TO vary rs
n-ice according local conditions without ols'ur'-
ing prices in other localities
DIFFERENCES IN PRICES.
The significance of the extraordinary differences
in prices charged in many different sections oil Ine
country or in different towns can ne appre'alsi
only the light Of the fact that EeIs 49, az
amount gallon constitutes iaif mar oI
profit on the investment in refining ana maFKet.ns
Of petroleum products. A difference OF ABOUT =
mills gallon in the price OF hQinlhau"s '
,,,.x moan a difference between profit OF ]" per
cent on investment in refining snd Inarke'he anu
Standards prices among competitive ana nom
nettive towns and areas, after making all allow
ances for differences in cost OF producuoh ana uS
often amount 10 HtNetdi GEMS
combination which can COMMAND ts ~ ~ ~ f f,
these figures imply. over large areas hao ueItIoIe
obviously a tremendous weapon "ii', IL va
aggressive price cutting against independent 'o'
Germs. =. o oh
The most accurate and complete data were Cd
..i,e5 IN, the bureau on this subject directly from
tho records OF the Waters Pierce Oh company "a
standard concern. The territory OF tia' COMPANY
Includes Arkansas. Oklahoma, lndlah leIii'VlS'
-- a-5 narts of Missouri and Louisiana. sepa-
ra,e5 in these records into seven divisions by me
I, llren -, In 1900 the profits varied from o9 cent
q cents
the North Texas division. The fIst SIX months i u
Taoa Tho nrofs were follows 81 LOUIS oi'i9o'i,
IS cent a gallon; East Texas ana LOUISIANA 30
cen,s. Missouri. Is cents; Arkansas -: /
C,,+b rrexas 33 cents; Central Texas. 90 c"i'S'
Tortb Texas "A cents, showing an eN eNus,ne I'M, i"15
- oe,e and of course, a correspondingy eA-
OF pronoS, ~ ret nrices Similar inequalities in
- ,rices aprear in the gasolene business OF tls
company o. r,.,r,,. fror,, prices
-, - Decernhar 1891 by over five thous''hu
In daaIers throughout the country show even
r,ra startling discriminate in prices Wl"il -"
e1 e1nfainable on any other theory IMAM ula' % ~ ,
,!Ieaos =, conpettive conditions and the US"
~ a monopoly power. These dscFiiiii''' '''i's o.
% ~ d " "a ee,,eral WAYS Taking the average prices
- - ,-srai states in December. 1904, the lowest
-! ~! IN r,,ears in Delaware. ~ cents a gallon.
treiobt deducted and the highest in Coloraoo, 10
,utca as high Part of the difference IN TINS cas-,
:, IL 20 higher cost Of refining and marketing OF
IL Colorado oil The difference In cost cannot eN-
- a. cents a gallon. which explains less tIldh
- IL e the total difference Of 8i2 cents dlrfer-
crca in the price. In several other ROCKY Noun
,ain and Pacific Coast states the average price %
;I,.,t,.,irg oil less freight. for December. IWi'
,rae over 15 cents compared with II IN Dela-
ware freight deducted
SUPPLIES FROM SAME FIELDS
-rb is sonoe difficulty comparing average
state prices, even after deducting freight rates.
arising from the uncertainty as 10 tne reIdNe cost
"a ,e,ufact,ring the oil sold in different states
~, 1t1icultv however. may be avoided by com
rayine onIv those states which are supplied from