Middlebury register. (Middlebury, Vt.) 1886-1937, 1907-08-16
OIL PRICES VARY
Standard Company Takes Advan-
tage of Its Monopo y
AMERICANS SACRIFICED
Exorbitant Profits at Home to Meet
Competition and Maintain Its Posi-
Policy" Officially Pointed Out

Policy Officially PoIntoc Out
Washington, Aug. Pin the busl
ness of selling petroleum in foreign
countries, the price policy of the Stand
ard Oil company has apparently been
to sacrifice the interests of the Amer
lean consumer for the purpose of Sc
curing the Standards foreign busi-
ness"
This direct charge is made in an Off
cial report to President Roosevelt by
| Commissioner of Corporations Smith.
in submitting to him further results Of
the investigation of the operations of
the Standard Oil company by the bu-
reau of corporations.
Part 3 of the report, dealing with dis
elimination in prices. made public yes
terday by Smith, consists of Il detailed
summary of the work of the investiga
tors aud a letter of transmittal of the
report to the president
Commissioner Smith asserts that the
Standard, enjoying practically an absO-
lutte monopoly of the oil trade in this
country, has charged such prices as
it could thereby eXtort,' and the
American consumer has had to pay
these prices. Meeting competition
abroad, it has given the foreign con
sumner enormously lower prices, and it
has used the profits made ut home to
maintain its position abroad. so that
the American consumer has been Sc
verely Disseminated against for the
purpose of maintaining, not the don't
nance of American export trade. but
the dominance of a particular combi-
patton which has used this power fire.
quently and conspicuously to the disad
vantage of the American public"
Extraordinary statements are con
tanned in the report respecting the vary
ing prices of oil in this country. II
is pointed out that, as the Standard
does business directly with the retail
dealers, it is in position to make diff
ferent prices on the same grade of oil
in different localities, and it actually
takes advantage of that position. In
localities where the Standard has no
competition it exacts immensely high
er prices for its products than it
charges in localities where it is obliged
to meet competition.
1t is shown in the report that mills
per gallon on Illuminating oil affords a
profit of about 10 percent on the in
vestment in refining and marketing the
oil.
but the actual differences in the
Standard prices among competitive
and non-compettive towns and areas"
says Smith, often amount to several
cents per gallon. a combination
which can command the profits that
these figures imply. over large areas,
has therefore obviously a tremendous
price cutting against independent con
Germs.
The report advertS to a striking"
instance of this divergence in the
prices of the same grade of oil in Cali
fornla where the Standard carries oil
from its refinery near San Francisco
several hundred miles by water and rail
to Southern California and there sells
it for several cents gallon less than
| IL tudl StS lOl II III san ihhNloNo
Smith declares that evidence lis abSO-
lutely conclusive" that the Standard
takes full advantage of all non-competi-
tive conditions to impose the highest
prices possible and ii uses similar
means T.. drive from the competitive
field all tould-be rivals for business.
Some astonishing statements, too,
are made regarding the methods pur-
sued by the Standard toward various
railroads of the country in supplying
to them their necessary lubrlcating
oils. Some lines which have shown a
disposition and have the power to COM
pound their own lubricants obtain IA
vorable rates from the Standard but
from all other roads the highest prices
are eXacted. An intimaton of the rea-
son why the railroads are willing to
pay the high prices demanded by the
Standard when they might obtain their
supplies at considerably lower rates
from independent concerns is con
tanned in Smiths statement that th,
reasons are entirely apart from tn
matter of lubrlcatiOn.'
Commissioner Smith expresses his be-
lief that he has made clear in this re-
port the obnoxious policy of the Stand
ards price policy" and that he has
shown that the Standard has main
tanned its monopoly mot by superiority
of service and by charging reasonable
prices. but by unfair methods of de
/ stroying competition; combination
which then uses the power thus unfair
/, ly gained to Cypress the public through
= wholly extortonate prices"
Big Drop In Standard OIL
New York, Aug. 13.-John ID. Rookie
, Teller lost money at the rate of a mil
e lion a minute for awhile yesterday in
Will street. Standard OIL drOpned OIL