The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1907-08-08

crease IN the margin for the products of
combined (taking single years and not. as
apoVe, groups of years. from 1898 to 1904
y Se oveT : cents per gallon, and, allowing
ner se psl,n roef q estimate Of one-half cent
lne COSTS or production and marketing.
uul lg TINS period, the net average in
ur "a IN profit during these seven years
ION II the same increase in profit he an
piian 10 the, Standards entire sales IL al!
States sis q = pe 1em tnl products in the United
WouId be about s2i. 900, 900 more than they
would nave been on the basis of the prices
k know costs IN 1888, As a matter of fact. the
hi,s,nnss ineaease OF profits on its whole
than this. va" "ioi'
SIMILARLY: for the year 1903, when the
prices of Oh reached their maximum these
prices would represent an increase in the
S~tandards profits on sales in the United
states that year of nearly $25, 900, 900 over
prices and costs in 1898.
lhese figures show conclusiyely the eff
tsct OF the domination of the Standard on
lne amount that the public pays for its
Increase in Profits.
Naturally an increase has also taken
place in the profits of the Standard by rea-
son OF this price policy. The Increase in
a an y; profits from 1896 to 1904 wa over
The total dividends paid by the Standard
from 1sS2 to 1906 We're 1851, 922. 94.5 50, aver
aging thus 24.15 per cent. per wear The
alvidends' however. We're much less than
the Total earnings. Exact as
10 these earnings is available only for the
years 1852 to 1896 and for the years 1909 to
lgoo. lncluslve, an aggregate for these years
OF about S1l4,oCo 00Q; but from these figures
the earnings for the other six years NAV
be estimated with some degree of correct.
ness ana 1t ls substantially certain that
the entlre net earnings of the Standard
from 1882 TO 1905 We're at least s7en ono n1a
and possibly much more.
Ihese enormous profits have been based
on an investment worth at the time Of it's
0Go. sHah s'o'oU'-
Furthermore, the rate of profit on the
caplta!lzatlon has increased greatly. From
1852 to 1894 the net earnings avera ged abo114
10 per cent. on the capital stock or trust
oeftlhcates outstanding, while the average
1908 We're about 6S per cent. yearly
These rates of profit and their great in
crease are strikingly confirmed by the
concern, the Water Pierce Oil company.
.RIhe lowest rate Of profit on its investment
was In ls9s-23.3 per cent. 1t increased in
nearly every year thereafter until in the
nrst SIX months of 1904 the profits were at
the rate OF Az per cent. per year More
over: the rate of profit OF this company
mas increased not only in proportion to its
Investment, but also per unit OF products
sold. The average profit on Illuminating
oil! for the years 1895 to 1899 was So cents
per barrel. while from 1900 to June, 1904,
the average profit was $1.32 per barrel
with similar increase of profits on the i'm.
portant by-products.
Rate of Profit.
a further verification of the profits of
the standard was afforded by computa-
ton OF the profits of certain of its indi-
ViGual ref1neries. In 1904 the rate of profit
on investment in these retineries and in
the marketing concerns distributing their
products was as follows: Refinery at
Lima. O., q per cent; Whiting, Ind, As
per cent; Sugar Creek, Mo-, IS per cent;
Seodesha, Kas., So per cent; Florence.
Coio.. 62 per cent or a weighted average
or AZ per cent about 90 cents per gallon of
on pipe line business.
The foregoing facts as to the profits will
thus. explain .vividly what has become of
the increase In prices and margins on pc
troleum products during the regime of the
Standard since 1893.
Very valuable additional information is
also shown in the report by the figures