The Cairo bulletin., 1907-08-05
Ev1~ m m
Proven False BY Report OF Com
missioner Of Corporations
Made Public Yesterday
Its History Is Persistent Use Of Worst Indus
trial Methods, Exaction of Exhorbitant
Prices and Securing Of Excessive
Profits

single years and not. "A above.
. grauRs " years) frGm f8@8 to / 904
was ever r cents per gallon, ami. al
hwil q very liberal estimate of oat-
7 halt ceut pen gallon f25 per cent? for
lacr.4sa III the costs cs production
and marketing during Ills period, the
Ect avtr rage increase Fl profit during
these seven years would thus be at
least LIS cents pef gallon. II the
same fncearse in profit be applied to
the Standards entire sales of all
iginda et petroleum products IN the
United States in 1901, the profits foF
that year would ba abcut $2l008,009
mere than they Would have been Oh
the basis of tile prices and cests III
l89S As 4 matter Of fact the known
uess as stated hereinafter, was more
tnan Tits.
4 siinlarl for the year 1903, when
tire prices of oil reached their maxi |
tlmm. those prices weu4 represent aa
increase ii the Standards profits On
isalas Ia Inc United States that yaar
iof nearly $45.9G0,000 ever prices and /
costs III 1898
These tisures show canelusiveiY
tha effect Al the domination ol thei
Standard On che amount that the puD-
Tic pays for It's oil.
Naturally an increase has also
taken place III the profits Of the
STANDARD By reason of this price
policy. The increase in annual pro-
fits from 1896 10 1904 was over s27,-
000,000
Fabulous Dividends Paid.
The total dividends paid by the
STANDARD from 1882 to 1906 were
955l,922 904.50, averaging thus PALS
1er cent per year The dividends.
however We're much less than the to
al earnings. Exact information as %
.hese earnings is available only for
he years 1882 to 1896 and for the A
teara 1908 to 1905, inclusive, an ag-
sregate for these years OF about
.7l4,G00,000; but from these figures
lie earnings for the ether six years
nay be estimated with some degree
# correctness, aud Il is substantially
ertain that the entire net earnings
f the Standard from 1882 to 1906 IN
tero at loast $79o,000,G00, and pos fl
IDLY much more gf
These enormous profits have been W
ased on an investment worth at the br
me of its original acquisition not oA
lore than $75,000,000. in
Furthermore, the rate Of profit on
le capitalization has increased great cd
Z From 1882 to 1894 the net earn. fo
lgs averaged about Is per cent on tic
ne capital stock or trust certificates an
While the average net Is
lrnipgs for the period from 1908 to Et
D05 we're about Gs per cent yearly alb
These rates Of profit and their
'eat increase are strikingly con
rmed by the known profits of one
lportant Standard concern. the WI
'aters Pierce Oil Company. The
west rate of profit on its investment
as in 1S9G-23.3 per cent. Il in cei
eased in nearly every year there chi
ter until in the first six months of Gus
0f the profits were at the rate Of Boa
2 per cent per year. Moreove, ans
q rate of profit Of this companr mar
IS increased not only in proportion -he
its investment. but also per unit mel
products sold. The average pro ion
On Illuminating oil for the years anf
% to 1899 was So cents per barrel so'
lile from 1900 to June 1904 the spa
erage profit was 1892 per barrel
Ih similar Increase Of profits on tha
lortant byprCducts.
A further veriieation OF the pro-
OF the Standard was afforded nv FRA
nputation Of the profits Of certain and
its individual reiinerias. In 1qas crs
rate Of proft on investment IN Zen
Sc reiineries and in the markatine ef.
ieerns distributing their nro5uc4e ting
s as follows. Refinery al sm, 500
TO- 81 per cent: Whiting. Ind Il
cent; Sugar Green. No. * ner
u; Neoiesha. Kas.. 35 per cent \
renee. Colo. 62 per cent. OF a ser.
Ighted average Of A Der cent - )
fut % cents per gallon OF Grade man
idiea This excludes tho profits Will
pipeline business Cbi'
De foTl gcine facts as g. the nrs. saIe
VII tiIus explain yividIy shat ffsis
rass