The river press. [volume] (Fort Benton, Mont.) 1880-current, 1907-09-04
WHO WILL PAY THE FINE?

Herbert Knox Smith, United States
commissioner Of corporations, has
made another lucid and vigorous re-
port on the methods of the Standard
Oil company, which will be of timely
service in the education of the public
in regard to the true character of the
great monopoly. The first report went
into the details Of the immense profits
of the company and its system OF re-
bates. In the second report is set
forth the fact that the price abroad of
American oil is lower than in the
country where it is produced, and that
there is also throughout the United
States . marked variation of prices
according to the grip the monopoly is
able to exercise in different localities.
Commissioner Smiths reports have
unusual value as public documents
because they show q mastery OF the
facts, give them concisely, and fear.
lessly go to the mark, sweeping aside
the subterfuges with which the monop.
oily has surrounded itself. A differ
ence of several cents a gallon in favor
Of foreign consumers is proved. AS
petroleum is on the free list there is
no chance to charge this margin on
q protective tariff. The difference is
due to an exclusive control of the Am.
erican market, with a resulting power
to discriminate and bulldoze in many
directions, says the Globe Democrat.
In the matter of lubricating oil the
monopoly has played favorites, re-
quiring some railroads to pay exorbi-
tant prices, while n of the railroad
systems was given q lower price than
any other. Throughout the United
States the prices for Illuminating oil
are fixed locally in an arbitr ary man
ner, the company's profits varying
from less than a cent a gallon to four
cents. Data obtained from 5000 re.
tail dealers warrant the statement that
there is no general market price in
this country for petroleum products.
Commissioner Smith says these vari.
atoms were made possible by the sys-
TEN of secret rebates long carried on
by the Standard Oil company. The
company claims that it has made its
profits by superior business ability
and economic improvements. Com
missioner Smith reaches an opposite
conclusion, furnishing the facts and
figures to cinch his opinion that the
monopoly has adopted and invented
unfair methods to destroy competi-
ton, oppressed the public by extor.
ton, raised prices instead of lowering
them, and charged more than would
have been asked by smaller concerns
if they had not been crushed by COM.
petition.
Who will pay the fines imposed il
the monopoly cannot be curbed? 1t
would take less than a cent a gallon
to wipe out the fine of 800, 24O 1000. In
so vast a business, covering various
products, and reaching into foreign
as we'll as domestic markets, it would
be easy to hide a manipulation for a
much larger amount of money. The
Stands ard Oil company has the power
to shift all fines to the public, and the
idea cannot be entertained that it will
omit to do it. A combination in re-
straint of trade, with rebates or other
DETERMINATIONS, is forbidden by law.
Therefore the task in hand is to COM
pei the Standard Oil company, and
all such organic atoms, to obey the
statute that congress has framed, and
that must be enforced unless monopo.
lies are to be allowed to run over the
law, bringing it into contempt, and
opening a road by which society
might be generally demoralized
Commissioner of Corporations Smith
has armed himself with exact knowl'
edge, and is a champion whose blows
tell.