The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1907-08-08

Following Is a SUMMARY "a
port: .. .no rrn,,c
the subject Of prices and profits are two
OF the most important parts or this report.
Previous reports on this subJect-on tne
I'Transportation OF Petroleum and on tine
"Position Of the Standard OIL Company in
tha Petroleum Industry"-ha dealt cniet-
ly with the methods used by the Stanoaro
Oh company, the dominant factor IN tne
Industry, to secure and maintain that dom,
ination, and have described the extent and
character OF its control; that Is TO say,
the facts already made public nave mao
to do with means and methods Inc pres
ent report, on the other hand sets 1ortn
the result of such methods and the eneet
thereof on the consumer and on the prohts
Of the Standard OH company.
These results largely take the shape , oI
nrices They must be stated In the form
Of tables and computations, and the 1acts
thus presented may of themselves seem
abstruse and uninteresttng. But from
them are deduced more certainly than
from any other form OF evidence the con-
clusions showing the definite policies and
tendencies of one great INDUSTRIAL compl-
nation having a serious Importance TO the
public because affecting the conditions OF
living. The fundamental tendencies thus
displayed throw light on the great prob
lens Of Industrial combinations In which
the country Is especially interesting,
The Standard OIL company 1s responsible
for the course Of the prices Of petroleum
and it's product during the last twenty-five
years. A former report demonstrated that
this company has maintained It's dominant
position since 1874.
Responsible for Prices.
The Standard has repeatedly claimed
that it has reduced the price Of oil; that
II has been n benefit to the consumer, and
that only great combination IKE tne
Standard could have furnished Oil at the
prices that have prevailed.
Each one of these claims is dlsproved by
this report.
The Standard has consistently used Its
power to raise the price of oil during the
last ten years, not only absolutely but also
relatively to the cost Of crude oil.
The average margin between Pennsyl.
vania crude oil and the illuminating OIL
sold by the Standard throughout the coun.
try, after deducting freight costs, from
September, 1897, to the end OF 1889, was
So cents per gallon; from 1900 to 1907, IN,
elusive, s cents per gaHon; and from l9o:
to June, 1905 6.6 cents, or an increase use, o o.
II Is remembered that from OF cent 10
cent per gallon constitutes q good prom
on the business, the meaning OF an In
crease of 1.3 cents in the last eight years
covered by this report is evident, even as
applied to Illuminating oil alone.
But II must be emphasized that a mucf
greater increase In total margin has taker
place in the case of the by-products thar
In Illuminating oil, the most important Of
which are lin the case of Pennsylvanis
crude) gasoline, lubricating oil, and paraf
fin wax. Including the margins Tor THESE
by-products with the margins for illumi'
mating oil, so as TO give a series OF aver
age margins for the combined four prod
ucts, weighted according to the respective
quantities produced, the increase IN mar
gins for this recent period is still more
conspicuous. Thus, the relative average
margin for the four products combined fol
the years 1928 and 1899 was &c cents: fol
1900 to 1902 IL cents, and from 1903 to June
1906, S4 cents, or an increase OF Is cents
r.. Fully as Conspicuous.
Substantially the same conclusions a.
to the increase of prices appear In th'
margins for Lime crude, The Increase II
its margins Is fully as conspicuous a.
for Pennsylvania crude. The relative av
erage margin for the combined product
Of Lima crudo for the years 1898 and 1S9
was 81 cents; for 1900 to 1902 IL cents
from 1903 to June. 1906 rs cents, or an In
crease Of II cents -. she eight years.
The tremendous Importance of the in
crease In margins can be fully appreciated
only By consideration OF the enormous
( output OF the Standard. The average IN