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About The commoner. (Lincoln, Neb.) 1901-1923 | View Entire Issue (Sept. 27, 1907)
Bi,lffWp", gEPTEMBER 27, 1907 The Commoner. "SWOLLEN PROFITS" AND HOW SECURED The following is taken from a Now York dispatch giving a report of the Standard Oil inquiry: Clarence G. Fay, acting comptroller of the Standard Oil company of New Jersey, was shown a table of capitalization" of seventeen companies . subsidiary to the Standard Oil company of New Jersey and a summary of their dividend pay ments and profits both for the years 11)03 and 1906. He attested its authenticity. It is as follows: Atlantic Rof. Co.... Buckeye Pipo Une. Continental Oil Eureka Pipo Line... Galena Slpnal Indiana l'ipo Line.. Natl. TranBlt Co.... N. Y. Transit Co Northern Pipe Line. Solar Ref. Co, Southern Pipe Lino, Oil of la.. of Ind. . . . of Ky of N. Y... of Ohio. . . Oil Co Standard Standard Standard Standard Standard Vacuum Capital. ,$ 5,000,000 , 10,000,000 300,000 5,000,000 , 10,000,000 , 1,000,000 , 25,455,200 , 5,000,000 , 1,000,000 500,000 . 5,000,000 , 1,000,000 , 1,000,000 1,000,000 . 15,500,000 , 3,500,000 2,500,000 -1903- DIvidendB. 18,190,830 1,499,955 498,000 2,949,646 1,125,560 3,798,860 2,545,165 $949,289 79,992 1348,380 599,988 600,000 9,491,500 997,200 10,498,650 174,970 Profits. $9,794,190 4.592,147 578,990 3,118,392 1,832,271 4,196,664 5,340,032 3,033,639 80,502 1,129,470 1,139,016 1,089,418 8,753,410 1,772,173 14,391,046 960,184 1,814,461 -1906- Dlvidends. Profits. Atlantic Refining: Co ? 2,249,955 $5,506,237 Buckeye Pipe Line v 5,799,798 7,028,568 Continental Oil. 405,000 575,043 Eureka Pipe Lino. , 3,049,634 2,435,105 Galena Steel 1,377,200 2,803,056 Indiana Pipe Lino 2,179,346 2,513,553 National Transit Co 5,090,330 1,923,767 Now York Transit Co 2,099,958 2,343,282 Northern Pipe Line 2,000,000 1,591,614 Solar Refining Co 419,460 1,258,519 Southern Pipo Lino 4,599,988 4,649,306 Standard Oil of Iowa 3,904,096 873,977 Standard of Indiana 4,495,500 10,516,081 Standard of. Kentucky 1.094.100 1.307,780 Standard of Now York 1,499,990 9,556,031 Standard of Ohio 174,970 1.009,520 Vacuum Oil Co 1,449,575 Mr. Kellogg developed while Mr. Fay was on the stand a curious problem of financial book keeping, or handling of accounts, which Mr. Fay failed to explain. From figures submitted it was shown that the Standard Oil company of New York in 1904 made a profit of $7,751,160 and paid in' dividends to the Standard Oil company of New Jersey' the total sum of $32,998,430. This transaction reduced the net assets of the New York company from $40,425,900 to $15, 4179,706, while the liabilities leaped from $47, G46,235 in 1903 to $81,395,145 in 1904, an in crease of nearly $34,000,000. The gross assets of the New York company, however, increased , from $88,074,561 in 1903 to $96,574,852 in 1904. 'Meanwhile the accounts receivable of the Standard Oil company of New Jersey grew from $19,045014 in 1903 to $58,272,924. Rof erring to this expose the Chicago Record-Herald says editorially: The Standard Oil company has repeatedly and earnestly denied that thcro had been any thing in its methods and policies to warrant tho government's "Campaign of persecution" against it. It had charged reasonable prices, had re spected tho spirit and letter of tho laws, and had not only done nothing wrong or immoral, but had greatly benefited tho country and, in deed, as Mr. Rockefeller said, deserved a public vote of thanks and a monument by building up, regardless of expense, a splendid foreign trade in American oil. In every statement of the company tho "foreign trade" argument has been very prominent. In tho light of tho disclosures at the hearing in the government suit for the dissolution of tho company as an illegal combination, its solemn assertions and pathetic appeals will ap pear even more ludicrous than they did in that of the sovoral partial reports of the commissioner of corporations. To do full justice to the whole situation tho figures relating to the trust's dividends and percentages of profits should be studied In con nection with the reports of the commissioner. It is not enough to say that seventy per cent profits and $70,000,000 totals aro not made legitimately on a capitalization of about $98, 000,000. This would be mere inference. Ac cording to the reports of tho commissioner, there is abundant and overwhelming evidence to show positively that tho company's "means of domin ation" have been unfair methods of destroying competition, extortion, price discrimination of the most flagrant character, ruthless local under selling, refusal to discharge legal duties, iih proper control of transportation facilities. To quote directly from tho latest report of Commissioner Smith, "the Standard is a most conspicuous example of a combination which maintains a substantial monopoly, not by super iority of service and reasonable prices," but by reckless use of power "unfairly gained" and by deliberate discrimination against home consum ers. The commissioner showed that tho Amer ican consumers have been forced "to pay tho cost of maintaining the Standard's power abroad," as well as the cost of its destructive warfare on competitors at home. Now we learn from the admissions bf its officials In court that in addition to all this tho American consumers have had to pay $70,000, 000 a year since 1899 in profits on a capitaliza tion of less than $100,000,000. Whatever may happen in the suit now in progress, the "foreign trade" argument and the pretense of reasonable returns on the invest ment and consideration of tho consumer have been retired for good. "BACK TO TUB PEOPLE" Some one has told the Kansas City Post that Mr. Bryan will undertake to dictate to the democratic party and the Post occupies con siderable space in knocking down the straw man. The Post says: "The Post, which does not stand in awe or dread of the power of any man or set of men, protests against -he inter ference of Mr. Bryan, or the dictation of any man with the freedom of action, freedom of ex pression of the democracy of county, state or nation." A democratic paper ought not to be so ready to fasten upon Mr. Bryan every charge made by his political opponents. For a paper which insists that it "does not stand in awe or dread of the power of any man" the Kansas City Post takes fright very easily. Its two column protest is unnecessary. Mr. Bryan has no desire to play the role of dictator. He has no desire to interfere with "the freedom of action, freedom of expression of the democracy of county, state or nation." On the contrary ho stands for the perfect freedom of action and the entire freedom of expression not only of the democracy of the nation but the democracy of the state and of the county, and not only that but the democracy of the precinct. He would have every democrat in every precinct in the. United States attend the primaries of his party to the end that in the selection of candidates and in the framing of a platform the "freedom of action and the freedom of expression" of the 'American democracy shall not in any way be checked by the decree of any one man or of any coterie of men. Repeatedly Mr. Bryan Las said that in 1908 the candidate will be chosen and the platform yill be written according to the decree of tho rank and file of democrats who will give ex pression to their views in precinct, county and state gatherings and finally in their national convention. oooo WHERE KNAPP STANDS - Martin A. Knapp, chairman of the inter state commerce commission, addressing a gather ing of railroad men at Chicago said: "I believe the most mischievous piece of legislation in the history of the country Ib the Sherman anti-trust law as interpreted by the United States supreme court. It is intolerable and strikes a blow at development and progress." Mr. Knapp might at least wait until some serious effort had been made to testthe Sher man law before he puts his brand, of worth lessness upon it. It will, however, occur to a great many people that there is not much hope for genuine railroad regulation at the hands of an interstate commerce commission whose chairman entertains the sentiments to which Mr. Knapp gave expression. OOOO THE LOST IDEALS 1 Professor E. A. Ross writing in the Atlantic gives the American people something to think about when he says: As a successful lawbreaker, the monopolist takes from us more than money; he takes away our ideals. For twenty years the waiter has watched the effect upon college young men of the con spicuous triumph of the first great commercial pirate the oil trust over able competitors, common carriers, ott-prodxwors, public prosecu tors, attorneys goncral, courts, legislature, nowspapers, and loadors of opinion. Many loft college for tho battle of llfo with the conviction that tho Ideals of success held up by their instructors woro unpractical. "Tho preachers and professors and com mencement speakers are old fogies," Bald one. "This Isn't the kind of world thoy think It is. Thoy aro fussy old maldjB, not strong men," "With all these flno principles," says an other, "you'd bo a dead ono from tile start. You'd novcr got into tho gamo nt all." "Monoy's the thing! With monoy you'ro it, no matter who kicks," says a third. "I'm going to climb Into tho band-wagon, not hoot at It ns It goes by." So, for iTevoral college generations, onp could mark In tho ebb of gcnorouB Ideals find the mounting of a precocious cynicism tho work ing ot the virus. ' Tho founder of tho oil trust may give tin back our money, but not ir ho send among us a hundred Wesloys can ho givo us back the lost ideals. OOOO WHY "EXCEEDINGLY DESIRABLE?" ' Mr. Burton, who Is anxious to beat Tom Johnson, the mayor of Cleveland, denies that tho Cleveland campaign "Is to an exceptional extent complicated with national politics." Mr: Burton says that lie wroto to Mr. Roosovolt and received the following reply: f "Oyster Bay, N. Y September 17. My Dear Mr. Burton: You put a hard question 'to mo In your letter to Mr. Loob. Thcro are4 cer tain qualities of leadership you possess which could not be supplied by anyone else In tho houso, and you have a mastery of certain sub jects such ns no other man In tho houso can hope to attain. For you to leave tho hoiiso, thereforo would moan that In certain lines of leadership there would bo a loss that can not bo made up. I would, thereforo, bo tempted to protest against your leaving if it were not for my profound conviction that it Is exceedingly desirable that you should win out as mayor of Cloveland. In view of the fact that our demo cratic system undergoes its most severe strain in the government of our cities, I feel that it is of the utmost importance to have a man of your experience, power and your long training, theo retical and practical experience In public llfo take such a position as that of tho mayoralty of Cloveland. Accordingly if you ask my ad' vice I should say mako the fight. With all good wishes believe mo faithfully yours, "'" "THEODORE ROOSEVELT." Now just why Is It "exceedingly desirable" that Mr. Burton should "win out as mayor'of Cleveland?" Tom Johnson is "a man of power and long training, theoretical and practical ex porlence in public life." It is not denied that he has given, as mayor of Cleveland, faithful service to the public interests. It is not denied that the people, rightly have implicit confidence in him. Why, then, is it "exceedingly desirable" that such a man as Tom Johnson be defeated? Certainly tho "democratic system" which Mr Roosevelt says "undergoes its most severo strain in the government of our cities" has not been injured by the concern which Tom Johnson has ever shown for the public interests, by tho great ability and zealous care he has ever exercised in behalf of the people of Cleveland. OOOO CAMPAIGN CONTRIBUTIONS Publicity should be given to every campaign contribution and it is of the highest importance that tho publicity be made before the vote is cast. If the publicity is given before the people go to the polls they will have an opportunity to learn tho character of the influences bohind the several candidates. It is to be greatly re gretted that many who are seriously advocating the publicity program with respect to campaign contributions do not lay proper emphasis upon the desirability of giving the information to the public prior to election day. OOOO . NON-PARTISAN It is related of a well nown lawyer of 'Omaha whose name is famous "as a republican partisan that ho was once called upon to deliver a- non-partisan speech. Some of hlrf friends who knew his falling coached him industriously in the hope that he would acquit himself cred itably and in the effor.t lose some of his reputa tion as a partisan. He did. In the beginnirig, and in the-effort to mako himself thoroughly understood as an 'independent of independents, he said: "I don't care what a man's politics is just so he is a republican." ii Ml m