New-York tribune., 1907-08-12
OIL CHEAPER ABROAD.
POLICY OF ST4ND1RD.
Fourth Government Report Takes
Up Price Determinations.

apparently been to sacrifice the interests of the
American consumer for the purpose Of securing
the Standards foreign business
This direct charge is made in an official report
10 President Roosevelt by Herbert Knox Smith.
Commissioner Of Corporations in submitting to
him further results the investigation OF the
operations Of the Standard Oil Company by the
bureau Of corporations
Part four Of the report dealing with discrim-
inations in prices made public to-day by
Commissioner Smith II consists of a detailed
summary of the work OF the investigators and
letter of transmittal Of the report TO the Presi
dent
ard enjoying practically absolute monopoly
Of the oil trade in this country. has charged
such prices il could thereby extort. and the
American consumer has had TO pay these prices.
Meeting competition abroad. ii has given the
foreign consumer enormously lower prices. and
II has used the profits made al home to main
tein its position abroad, so that the American
consumer has been severely Disseminated
against for the purpose Of maintaining not the
dominance Of American export trade but the
dominance of q particular combination which
has used its power frequently and conspicu-
ously TO the advantage of the American pub
nc"
DISCRIMINATION IN PRICES.
Extraordinary statements are contained in
the report respecting the varying prices of oil
IN this country. Il is pointed out that the
dealers # is in position to make different prices
on the same grade Of oil in different localities.
and il actually takes advantage of that posi-
ton In localities where the Standard has no
competition II eAacts immensely higher prices
for its products than IL charges in LOCALITIES
where il IS obliged TO meet competition the
report says.
II is shown that seven mills gallon ilu-
rninating oil affords a profit Of about 10 per
cent on the investment in refining and market
ing the oil But the actual differences IN the
Standards prices among competitive and non
competitive towns and areas, says CoiIiNis-
sioner Smith, "often amounts TO several cents
gallon a combination which can command
the profits that these figures imply over larse
areas has therefore obviously a tremendous
/ zreanon when il enters aggressive price cut
/ ting against independent concerns
The report gives striking instance OF 'ili9
divergence in the prices of the same grade OF oil
q C-o1ifornia where the Standard carries oil
from it's refinery near San Francisco seFeraI
hundred miles by water and ran 10 s7oulliiH
California and theUn sells 1T for several GEMS d
Gallon less than it,charges for it in san Fran
cisco. -, -;
Commissioner Smith declares that the eNi-
dence is absolutely conclusive that the otaiiu
ard takes full advantage OF all nor-coIiPeli,
conditions 10 impose the highest prices posS4pie'
,6 n 7,ses similar means to drive from tne
competitive field all would-be rivals Tor pusl-
SALES TO RAILROADS
Same interesting statements, too. are maze
toward various railroads Of the country III sup
rIzing 10 them their necessary lubricating oils
Some lines which have shown disposition anu
have the power 30 compound their own Iuprl-
cants obtain favorable rates from .he StaiIu-
ard but from all other roads the highest prices
are exacted An intimation Of the reason why
the railroads willing 10 pay the high prices
demanded by the Standard when they might
,,btair their supplies at considerably lower rates
from independent concerns is contained in Com
missioner Smiths statement that the reasons
are entirely apart from the matter OF lubrica-
tion.''
Commissioner Smith expresses his belief that
he has made clear in this report the obnoxious
features OF the Standards price policy. and that
he has shown that the Standard has maintained
its monopoly not by superiority OF service ana
by charging reasonah BILE prices. but by unfair
methods Of destroying competition. combina-
tion which then the power thus unfairly
gained oppress the public through wholly ex-
tortionate prices.
BY direction Of the President Commissioner
Smith says he has withheld from publication
this time some important evidence OF price dis
elimination account of the proceedings which
have been instituted by the government TO dis
! solve the Standard Oil Company.
COMMISSIONERS SMITHS LETTER
The conclusions drawn from the facts sub
. rnitted in the report and the leading features
OF the report itself are summarized in Com
missioner Smiths letter to the President. which
follows:
business
foreign countries the price policy of The Standard
OIL Company has apparently been to sacrifice the
of the American consumer for the purpose
of securing the Standards foreign business, which
as very important In 1894 over 90 per cent
os the illuminating oil produced in this country
exported. Of which the STANDARD exported
about g cent
! The relative movement Of oil prices dstin-
g7lished from their absolute level has shown for
the last eight years startling disparity between
the United States and foreign markets. particu-
larly from 1892 TO 1906 The American price stead
/ iv advanced from 1897 20 1903. The New York
.sxport price advanced much less uD TO 1903 de
cIintng in 1904 and the Hamburg (German) price =
shows practically the movement the New
: a steady decline from 1891 TO 1904 and very i'm
.7ortant drop during 1865 The course of American
end foreign prices in the last i've years covered
e. this report has shown greatly increased dl-
,errence in general the American prices going up
and the foreign prices showing marked decline
still more remarkable is the comparison of the
atsol,re level prices distinguished from their
.,,,oxprenfl of the United States and foreign mar
eets The statistics obtained for these computa- !
.sons were secured by representative OF the bu-
,eau who visited the more important European
oil consuming countries anu seCuieu ''7 an"
trepresentative data.
7, should be noted in comparing absolute prices
Of American with foreign markets that a 1lier,
,nce of about ! cent gallon must be allowed |
.o- on account Of the difference in the quality OF
or sold in the markets. water whlte OF belii-
.ba tasis Of the American prices and standard
f-.i,e the basis OF foreign prices Water white OH
se worth about one more than standard white
-1-,erefore one cent a gallon should be deducted
from the differences between American prices anu
The following summary statement
xbous the averages of the monthly prices Tor 'ile
,,ertoss specified after dedueting transport costs
and duties:
average United states price June 1853. to August -
AIeTsge 6;er:sT price June. Isos August 1869 ID
Excess Of United States price Cess eensD 20
United States price january isO5 % A" IA