The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-08-12
SMITH is BITTER
ON STANDARD OIL
Herbert Knox Smith Makes Re-
port to President, Which
Roasts Trusts Methods.
sc ORES lis ETHICS

WASHINGTON. p. c.. August H.
In tho business of selling petroleum
products In foreign countries the pol7
Icy of the Standard OIL Company has
apparently been to sacrifice tho inter-
ests of ;he consumer for the purpose
Of securing the Standards foreign
business"
This direct charge is made In an
official report TO President Roosevelt
by Herbert Knox Smith, Commissioner
Of Corporations, in submitting to him
further results OF the investigation OF
the operations of the Standard OH
Company by the Bureau OF Corpora
tions.
Part three of the report. dealing
with determinations in prices, was
made public to-day by Commissioner
Smith. 1t consisted OF detailed sum
mary of the work Of the investigators.
and a letter of transmittal Of the re-
port to the President.
Commissioner Smith asserts that
1.-THE Standard, enjoying practically an
absolutely monopoly Of the oil trade
in this country. has charged such
prices as IT could thereby extort, and
the Americon consumer has had to
pay these prices. Meeting competition
abroad, it has given the foreign con-
sumner enormously lower prices, and
1t has used the profits made at home
to maintain its position abroad, so
that the American consumer has been
severely Disseminated against for the
purpose of maintaining, not the domi-
nance OF American export trade, but
the dominance Of a particular com-
hination. which has used It's power
frequently and conspicuously to the
disadvantage of the American public.
Varying Prices of OIL.
Extraordinary statements are con-
tanned in tho report respecting the
varying prices of. oil in this country.
1t is pointed out that as the Standard
does business directly with the retail
dealers. 1t is in position to make
different prices on the same grade
OF oil in different localities and it
actually takes advantage of that po
sition In localities where the stand
ard has no competition, 1T exacts i'm
mcnsely higher prices for its product
| than t charges In localities where 1t
Is obliged TO meet competition.
II Is shown in the report that seven
mills per gallon, on Illuminating oil.
affords a profit of about ten per cent.
on the investment In refining and mar
keting the oil. "But the actual diff
ferences In the Standards prices among
competitive and competitive towns
and AREAS" says Commissioner Smith,
i.oftcn amount to several cents per gal
Ion. a combination which can COM
mand the profits that these figures
imply. over large areas, has therefore
obviously n tremendous weapon when
1t enters on aggressive price-c cutting
| ,t,,, t,,J, ,Io,,t nrpc'
Striking Instance.
The report advcrts to Striking"
instance Of tl.is divergence in the prices
| OF the same grade of oil in California,
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 n gallon less than
| it charges for 1t In San Francisco. Com
missioner Smith declares that the owl
dence is absolutely conclusive" that
| thrt Standard takes full advantage
| of all noncompetitive conditions TO linz
pose the highest prices possible and
! 1t uses similar means to drive from
1.-THE competitive field all would-be ri
walls for business,
some astonishing statements, too
sued by the Standard toward various
railroads of the country In supplying
to them their necessary lubricating oils.
Some lines which have shown dis
| position and have the power to COM
Mound their own lubricants obtain fla
| vorable rates from the Standard. but
from all other roads the highest prices
are exacted, An intimation Of the
reason which the railroads arc willing
10 pay tho high prices demanded by
! the Standard when they might obtain
| their supplies a considerably lower
| rates from Independent concerns Is
/ contained In Commissioners Smiths
statement that the reasons are entire
ly apart from the matter Of lubricants.
Commissioner Smith expresses his
| belief that ne has made clear IN inns
report "tho obnoxious policy OF the
Standards price policy" and that he
has shown that the Standard has main
tanned Its monopoly, cont by superior
1lty OF service and by charging rea~
sonablc prices, hui by unfair methods
Tor destroying competitions; combina
tion which then nses the power mus
unfairly gained to- Cypress the puEllc
4 through wholly extortlonate prices