The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-03-10
WAR ON TRUSTS
GOES MERR|Ly ON
STANDARD OIL AND AMERICAN
TOBACCO COMPANY UNDER
FIRE IN GERMANY.

/ IN IDe peHUlHB ieElSldlbptl W tSldbiASh
/ q government oil monopoly and their
| questions indicate that the underlying
/ facts are not yet understood by the
| American public.
| The root of the trouble isthe Amer
| can Oil Trust which has virtually
! choked out competition in the German
market by cut-throat methods of the
/ character known so well in the United
/ States in the Standards earlier years
The government forced by public
The government was forced by pub
/ lie clamor to promise at this session
i of the ReiChstag relief from the "Oc-
/ topus." but when ii came to agreeing
on plan of procedure conflicting sug-
/ gestions divided the country so widely
! that the reform has been almost lost
sight of in the discussion.
The bone of contention lies in di-
verse opinions as to the proper ave
/ nues of disbursement of the profits
| hitherto accruing to the Standard and
which now seems likely to he subject
/ to the will of the nation at large. The
/ Social Democrats and the Centre party
/ declare that the grand object in view
! should be lower prices for the work
/ ingmen and strenuous protest against
j the government idea of proceeding
1 along the same general lines as the
Octopus itself has followed--namely,
/ maintaining a virtual monopoly. with
! the sole difference that the immense
profits in oil sales shall be applied.
/ to the relief Of special or at best quasi
/ public ills. The officials discovered the
/ opposition 20 the plan with great cha
| grin, especially as they had already
/ fixed upon a definite channel of distri-
/ bution-pensio funds
Standards German Branch
The observation-disclosures Petrol
cum Gesellschaft was founded in 1880,
/ absorbing firms of Hamburg and
! Bremen. This German branch of
/ Standard Oil lost no time in putting
/ into force the price-cutting system OF
/ sitting competition. Firm after firm
was taken into the company until only
/ three important independent concerns
were LETT TWO of them finally capt.
/ tulated and now there remains but
/ one.
/ on this point at least all political
parties are in agreement-that some
method should be devised to protect
the retailer from unfair competition
and to insure his right to carry on
his own little business unmolested,
/ Government regulation of prices seems
to be a generally favored means to
this end. A logical coroflary to this
has developed in a plan, under which
an oil company may be formed with
German retailers holding the major
ity of the stock, suitable provision TO
be made to insure the retention of
control by the retail element in spite
/ of any possible manipulation by capt.
talsts.
The prospective company, accord
ing to plans already approved in many
quarters, viii be entitled TO lease, un-
der the supervision OF the govern
ment, the exclusive right to import.
manufacture and distribute, whole
SALE burning oil. The articles of
Incorporation. which will be subject
to approval by the chancellor of the
empire, will provide that a govern
ment official be placed in direct charge
of the company's operations
A limit OF profits allowed the COM
pany and the government will be
fixed by a special schedule taking in
to account cost of raw material and
other shifting conditions The prop
erty OF existing concerns will be ac
quired In a friendly way, or by con-
demnation. In condemnation proceed
ings a board Of six Will sit in judg
ment, and its decision will be sub
iect TO appeal If the business house
affected can show that for the five
years preceding profits have averaged
per cent in excess of the indemnity
granted The employees OF the ac-
CURED business viii be taken care OF
az far as possible, those discharged
to be reimbursed according to age and
length Of service.
This scheme OF reorganization has
to do chiefly with burning oil, and will
not concern itself with benZine, naph-
tina and lubrtcating oil. American oil,
while not excluded from Germany ar
btrarily. will be handled only along
lines of fair competition to be set
down by the government.
The advocates OF conducting the oil
business through a private company
with government inspection and SUI
pervision, point out that there will be
only two profits; one the wholesale
profit to be limited as mentioned
above and divided between the COM
pany and the government; the other
the retail profit. Bank profits inevi
table under the purely government
monopolistic plan, will be eliminated,
within a consequent possible reduc-
ton in prices all along the line,
War On Tobacco Trust.
Close on the heels OF agitation
against Standard OIL in Germany has
COME campaign of opposition to the I
German branch OF the American To-
pear, has gone far to monopolize the |
cigarette trade among the Teutons. /
Since 1900 the American invader has
bought up the. large Dresden factories, /
constituting the heart of the cigarette 1
business in. Germany, and has also /
taken over factories IN ESrtIn. ana elSs- {
where. 1t is now feared that abe al
legged trust Will establish it's own re- /
tail stores throughout the Empire and /
having secured control of the distrib-
uting agencies, promptly proceed to
put competing manufacturers out OF
business,
Well attended meetings OF German I
dealers eliminated recently in a
gathering in Dresden at which IL was /
resolved that campaign of news /
paper and other publicity is essential /
TO head off the activities of the Ameri- /
can company; that quality Is being |
lowered and prices raised; and that al
hitherto hourishing industry is on the !
point of being destroyed unless the I
government itself can be induced to |
join hands in combating the alleged |
trust.
1t is brought to the attention of |
German tobacco users that they are |
enjoying quality and price conditions /
vastly superior to those in the United |
States.
GREAT DEPOSITS