The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1907-08-14
STANDARD OIL SCORED AGAIN
ANOTHER REPORT MADE on
THE PETROLEUM INDUSTRY.
Commissioner of Corporations Smith
Charges the Standard Oil Company
With Making the American. Con-
su1ner Pay the Cost Of its Control
of the Oil Industry Abroad.


Washington, Aug. 11-"In the
business. Of selling petroleum products
in foreign countries the price policy
ef the Standard Oil Company has ap-
parently been to sacrifice the inter
ests of the American consumer for
the purpose of securing the Stand
ards foreign business"
This direct charge is made in an
official report to President Roosevelt
by Herbert Knox Smith, commission
er of corporations, in submitting to
him further results Of the investiga-
ton Of the operations of the Standard
Oh! Company by the bureau Of cor
porations. Part three Of the report,
dealing with determinations in prices,
was made public today by Commis-
sioner Smith. It consists Of detail
ed summary Of the work of the in
vestigator and a>letter Of transmittal
Of the report to the president.
Commissioner Smith asserts that
the Standard, enjoying practically an
absolute monopoly Of the oil trade in
this cocuntry, has charged such
prices as it could thereby extort, and
the American consumer has had to
pay these prices. Meeting competi-
ticn abroad, It has given the foreig.i
consumer enormously lower p~je=s
,nd it has used ,he profits made al
nome to naa;:ltain its position abroad
50 that TIE american consumer aas
bee.. severely disseminated against
for the purpose Of maintaining, not
the dominance Of American export
trade, but the dominance of a partic-
u3ar combination which has used its
power frequently and conspicuously
20 the disadvantage Of the American
public
Extraordinary statements are con-
tanned in the report respecting the
varying prices of oil in this country.
It is pointed out that, as the Standard
does business directly with the retail
trade, it is in a position to make diff
ferent prices on the same grade of oil
II, different localities. and it actually
takes advantage of that position. II
localities where the Standard has nc
competition it exactS immensely hig-
er prices for its producet than it
charges in localities where it is
obliged TO meet competition.
It is shown in the report that sever
mills per gallon on Illuminating oil
affords a profit of about ten per cent
on the investment in refining and
marketing the oil. But the actual
differences in the Standards prices
among competitive and non-conmpet
tive towns and areas. says Com
missioner Smith, often amount tc
several cents per gallon y combina-
tion which can command the profits
that these figures imply, over large
areas. has therefore obviously q tre-
meadous weapon when it enters on
aggressive price cutting against in
dependent concerns.
The report adverts to striking
instance of this divergence IN the
prices of the same grade of OH in Cali
fornia. wher4 the standard carries oil
from is refinery near San Francisco
several hundred miles by water and
rail. to Southern California and there
sells ii for several cents gallon less
than it charges for it in san Francis
go. Commissioners Smith declares
that the evidence is absolutely con-
elusive that the Standard takes fuh
advantage Of all non-competitive con-
.litions to impose the highest prices
possible. and it uses similar means 70
drive from the competitive field ali
would-be rivals for business
Some astonishing statements, too.
are made regarding the methods pur-
sued by tie Standard toward various
railroads Of the country ia supplying
70 then. tneir necessary luhricating
oils. Some lines which have shown a
disposition and have the power TO
compound their own lubricants obtain
favorable rates from the Standard
but from All other roads the highest
prices are exacted. IN intimaticn Of
the reason why the railroads are Will
ing to pay the high prices demanded
i,v the Standard when they might
1I+,;r tbeir snnnlies at considerable