Mitt VOL. XLVI. NO- 14,563. PORTLAND, OREGON, 3IONDAY, AUGUST 13, 1907. PRICE FIVE CENTS. aw. STRIKE PROMISES TO SPREAD TODAY May Affect All Cities in United States. MEWS ASSOCIATIONS ARE HIT Employers Given 24 Hours to Meet Demands. RANKS OF STRIKERS GROW Half-Thousand Men Go Out -Sunday. Commissioner Xeill and Presi dent Small Exchange Telegrams. PROGRESS OF THE STRIKE. National officer of Telegraphers' Union willing to stand behind strike action of locals. Walkout promises to be general by Tuesday, unless agreement Is reached on plan for settlement. Men employed by press associa tions give- employers 24 hours in which to grant Increase In wages. Five hundred men Joined strikers yesterday. Four thousand men are now out. Commissioner Nelll. President Small, Samuel Oompers and Ralph M. Eaaley expected to hold confer ence In Chicago early this week. Situation In Portland. All operators In Portland are still on duty and will remain at their posts until called out by President 8mall. Every man Is prepared to re spond It a general strike Is ordered. . CHICAGO, Aug-. 11. The strike of the union commercial telegraph opera tors will be universal throughout the United States and Canada within 24 hours, according- to National Secretary , Russell, of the telegraphers' organiza tion. This statement was made by Mr. Russell after he had been informed of the action taken by the men , in New York, who, at a meeting there today, decided to hold a walkout in abeyance until the latter part of the week. "This strike movement," said Mr. Russell, "has come to a point where there can be no backing down. The telegraphers have been trodden- on long enough by the companies, and now that we have the opportunity we are going to use all our strength to enforce our demands. For several weeks President Small and myself have been holding the telegrapher, bark, and have -been ad vising conciliation; but they have tak en matters in their own hands and we are going to stand by them. No union man will be allowed to work with any one not belonging to our organization, and this means that tomorrow morning, when the business of the week begins, the strike will become universal. We cannot go half way in this matter now. The strike has been precipitated by the men themselves, without the sanc tion of the National officers, but we are now working in unleon and any thing that the officials of the various unions throughout the country have done In calling strikes meets with our hearty co-operation." Railway Telegraphers Offer Aid. This announcement was made by Mr. Russell at a mass meeting of the strik ing telegraphers held In Brand's Hall this afternoon. The hall seated 1500 persons, and eo great was the demand for accommodations that several hun dred of the striking operators were un able to gain admittance to the build ing and remained on the streets in the vicinity until some of the early arrivals had left the hall. The Order of Railway Telegraphers was represented at the meeting by Na tional Secretary Quick. Mr. Quick In formed the strikers that his organiza tion was at their disposal, both morally and financially. "We have 11,000,000 in our own treasury," said he, "and it is at your disposal. Tour fight is ours, and we will stand with you until the end." Before the mass meeting the 320 union telegraphers employed by companies using leased wires was held. At this gather ing brokers, news agencies and commer cial organizations, Including the big packing-houses, were represented. A resolu tion was adopted declaring that this class of labor was underpaid and that the vari ous firms would be asked to sign a wage schedule and also to employ none but union telegraphers. It was decided to let the private-wire men prepare and present their own sched ules to their employers. The broker-men will present their schedule at 10 o'clock tomorrow morning. The broker-men will ask for a minimum of 130 a week. Demands on Press Associations. The men employed by the press asso ciations presented their request at 7:30 o'clock tonight, and the employers will be given 24 hours to comply with It. The schedule presented calls for $35 a week for six nights' work, and 70 cents an hour overtime, eight hours to constitute a day's work, with half an hour for lunch. The operators employed by the news com panies and newspapers in the daytime will ask for $30 a week and GO cents an hour overtime, eight hours to constitute a day 'a work, and the regular lunch. These requests were presented to every newsgatherlng organization in the United States and Canada this evening, and 24 hours will be allowed for an answer. If at the end of the time the demands have not met with a favorable response, the men will report to the union officials, and they say a strike will be ordered. In regard to the newspaper end of the controversy Secretary Russell is sued the following statement tonight: To all publishers. United States and Canada: The Commercial Telegraphers' Union does not desire In any way whatever to hamper the newspapers of the country. We are fighting for our rights, however, and believing 'hat the telegraph operators em- VJ 4 ..it r Vf J i V - Samuel Gompers, President ent American f , Who Will J Federation of Labor, Assist In Effarts to Settle Tele- graphers' Strike. jl ployed In this service are underpaid, we have authorized our men to present a schedule to their employers asking for what we consider reasonable recompense for their labors. If these demands are not met by the various news gathering organizations within a specified time the men will be ordered to quit work. Ranks of Strikers Augmented. In Chicago today the officials of both companies declared that they had more men working than they needed. "Sunday is quiet in the telegraph busi ness." said one of these officials, "but we could have handled twice as much business as we did. - In fact we sent several operators home as we did not need them. About 505 men were added to the tanks of the strikers today. The new recruits came from various sections throughout the country. In each case the strikes being precipitated by the men refusing to work with non-union men in other cities. Tonight approx imately 4000 telegraphers are on strike, divided among the following cities: Chicago. St. Louis, St.' Paul, Minneapolis, Milwaukee,' Denver, Kan sas City, Memphis, New Orleans, To peka, Sedalla, Mo., Puebla, Jackson, Miss., Dallas, Houston, Nashville, Co lumbus, O., Meridian, Miss., El Paso,. Salt Lake. Helena, Fort Worth, Okla homa CRy. Birmingham, Augusta, Sioux City, Omaha, Knoxville, Council Bluffs, Charleston,. Galveston. Atlanta, Texarkana. Fargo. N. D., Los Angeles, Colorado Springs, Jackson, Tenn., and Beaumont, Texas. AWAIT ACTION' OF CONFERENCE New York Telegraphers Will Keep at the Keys Until Friday. NEW YORK. Aug. 11. Action looking to a strike of the 3000 telegraph operators in this city has been deferred until next Friday, pending an important conference in Chicago early this week at which United States Labor Commissioner Charles P. Neill, Samuel J. Small, presi dent of the Telegraphers' Union, Samuel Gompers, president of the American Fed eration of Labor, and Ralph M. Dasley, chairman of the executive council of the National Civic Federation, will endeavor to effect an adjustment of the difficulties between the telegraph companies and their employes throughout the country. The decision was reached at a meeting of the local telegraphers' union today. News that Commissioner Nelll was en route to Chicago to try to bring about a settlement was announced at the meet ing by James P. Archbold, secretary of the National Civic Federation, who said the Commissioner was proceeding in the matter at the request of President Roose velt. Secretary Loeb stated tonight that the President had not ordered the Labor Commissioner to interfere in the strike and that the Labor Commissioner had not informed the President of his action. Secretary Loeb added, however, that the Commissioner . had full power to act In the matter without executive directions. Men Anxious to Strike. Deputy President Percy .Thomas, of the Telegraphers' Union, announced after the local meeting today that President Small and members of the National executive committee will meet In Cnicago on next Thursday to discuss the advisability of calling a general strike. Mr. Thomas said that he made arrangements ' to call a general strike in all cities and towns east of Pittsburg, and the calling out of the operators depended upon the report of the Chicago conference. ' The meeting of the local Telegraph ers' Union was punctuated with acri monious discussion on the question of deferring action . on a strike, and it was only after a three-hour argument. In which the local union officers used all their efforts for deferment, that the decision was finally arrived at giving the local executive committee power to call a strike if the Chicago conference failed to result In material concession to the -local employes of the Western Union and Postal Companies. Several hundred telegraphers were present when Joseph Ahearn, president of Local No. 16, convened the meeting at Manhattan Lyceum this afternoon. There has been much strike talk during the day and the operators were strong ly of the opinion that a strike would be called. Deputy President Thomas, who was delegated yesterday by Presi dent Small to direct the situation In the Kast. made a short speech In which he said that he was willing to abide by any decision of the meeting. Several warm speeches declaring for a strike were made by members after the speech was concluded, and a motion to call a strike was about to be made when Chairman Ahearn announced that JapunesTP. Archbold, secretary of the National Civic Federation and a mem ber of the Brotherhood of Painters, had an Important statement to make. Mr. Archbold said that he had re- (Concludec) on Paga S.) EN MORTAL FEAR 1 1 OF Reign of Terror in Pennsylvania. STATE TROOPS GALLED OUT People in Mill Towns Afraid to Leave Their Homes. ITALIANS UNDER ARREST One of Them Identified as Brute Who Slashed Woman's Throat Because She Refused to Give Money Detectives at Work. PITTSBURG, .Aug. 11. (Special.) The whole mill district of Western Pennsyl vania has been roused to action by the outrages .charged to the murderous Black Hand Society. The streets of New Castle and Htllsville are being patrolled by Troop D of the State Constabulary. More than 40 suspects, including four known leaders, are in Jail at New Castle. The State Constabulary was ordered out by Governor Edwin Stuart on petition of citizens, who are afraid to leave their homes, fearing attack. Evidence is being secured by Pinkerton detectives employed by the United -States Steel Company. The detectives are work ing among the Italians and as fast as evidence is secured suspects are rounded up by the state troops. The police of Al legheny City today made the most im portant captures during the crusade against the Black Hand, In which the officials of New York. Philadelphia, Rochester and other cities are co-operating. Black Hand Villain Identified. Giatana Racco Is in jail, accused of slashing the throat of Mrs. Mary B. Basusko at her home, when she refused to give up money demanded by him and another Italian, for whom the police are looking. The woman has positively iden tified Racco as the man who slashed her throat with a razor, while his accomplice held a cap over her face. Tonight Racco was identified as one of the assassins of Domlnio Marattio, a wealthy Italian lured from home at night and shot to death, after receiving Black Hand letters that threatened death un less he gave up $5000. Racco was identi fied by Samuel McKee, who witnessed the murder' from his home. Racco lived In New York, from where the threatening letters came to Marattio. The police be lieve he was sent here as the agent of the society to assassinate the wealthy Italians. Michaelo Govlnite, a wealthy owner of fruit stands In Pittsburg and Allegheny markets, has appealed to the police for protection. During the last week he has received letters from New York, Lon don, Philadelphia and Rochester, de manding $3000, under threats of death. All were written in red Ink and signed "Maghiflco." He Is living In constant fear of assassination. Woman Raves in the Hospital. Mrs. Bazusko Is in a critical condition as a result of the deep gash across her throat, and her mental condition is piti ful. She fearg the Black Hand agents will get into the hospital and finish their work. She told detectives that when Racco attacked her he said, "I am boss of the society in Allegheny; better give me money, or we will kill you; If I don't, some one else will." OPPOSE SENDING FLEETS Certain Element In Congress Against Naval Display In Pacific. WASHINGTON. D. C, Aug. 11. (Spe cial.) The President's naval pro gramme to send powerful battleship and cruiser fleets to the Pacific Is threatened by a certain element in Congress. Inquiries made at the Navy Department by members of the Naval Affairs Committees of the two houses and by individual Senators and Rep resentatives, indicate that there is strong opposition to the programme in the East. Unless the fleets are well on the -vny when Congress meets, res olutions designed to embarrass the ad ministration are likely to be intro duced. The control of the ships of the Navy Is, by law, In the hands of the President, who will probably assert his Independence of Congress. SAYS ROADS NOT TO BLAME Harrlman Talks About the Threat ened Coal Shortage. OMAHA. Neb., Aug. 11. E. H. Harrl man and his two sons aftended church at Trinity Episcopal Cathedral here today during a break in the Westward vaca tion trip which the railroad magnate is making in his special train. The Harrl man party was accompanied .from Chi cago to Omaha by President Harahan, of the Illinois Central. Mr. Harrlman gave out a long Inter view this afternoon. Many of his state ments had, however, been maae before. He declined to comment upon recent court actions against corporations. In answer to questions, Mr. Harrlman said: "I think we shall have a coal shortage this winter, due to the. general Increase In the consumption of coal by reason of BLACK HMD the great expansion of all lines of In dustries all over the country, anu also to the fact that some mines are not able to turn out as much as they might because of a lack of labor, and then there Is the shortage 01. ' freight cars to be reckoned with. And to this car snortage I want to say a word in reply to the general charge that the railroads are wholly to blame for car shortage. The charge is unjust ' in many respects. Numerous causes conspire to bring about a shortage or congestion in cars where the people know nothing, and they are causes for which the railroads are not responsible and cannot avoid." Mr. Harrlman depreciated the Vecent tendency of rate legislation. Said he: "In the development and Improvement of railroads one factor of vital consid eration Is the relative cost of material and labor and the- scale of rates for traffic. Labor is scarce and much higher paid than ever, material is often hard to get and costs more, yet rates have been reduced and taxes Increase... This Is not a consideration which holds out either to the people or the railroads the bright est prospect. Under the present condi tions of the higher cost of labor and ma terial the tendency in rates should be to remain stationary." President Harahan, of the Illinois Cen tral, expressed enthusiasm for the motor car which is now being so largely added to the equipment of tne Union Pacific, and said the manufacture and use of thl3 car was now under consideration by his. company. -WHEREISJDHND.'SFATHER? RUMORS THAT HE IS LIVING SOMEWHERE IN IOWA. Said to 'Be Physical and Mental Wreck, Mumbling Curses Day and Night Mystery Surrounds Him. NEW YORK, Aug. 11. In connection with the deep mystery as to the where abouts of William A. Rockefeller, father of John D., William and Frank Rocke feller, there have been vague rumors for two years past that the old man was living somewhere in Iowa. Frank Rocke feller charges his brother, John D.. with starting these rumors in order to deepen the mystery and to conceal the actual habitation of their father. The world ran down the report con cerning Iowa during Its IS months' search for the father of the oil magnates, and the results were curious. Its informa tion purported to come from a man who had actually seen John D.'s father In his place of concealment only one year be fore, and who had located him in Cedar Valley, Iowa. It described the aged man as a physical and mental wreck, unable to leave his bed and mumbling curses day and night. His home was said to be an Isolated farmhouse and his sole attendant a man who shunned his neigh bors and guarded his secret closely. On this clew a World reporter visited Cedar Valley, a wide tract of farming country, thinly populated and virtually snow bound through the--lojg . Winters. -The farmers are taciturn and suspicious. They live on Isolated farms and each minds his own business. Almost every farmer questioned told of an old man by the name of Rockefelelr who lived In the county. Some described him as a tall, stout man of great age a description that seemed to fit the vanished father of John D. Not until every corner of Cedar County had been ransacked did the reporter find a real clew. Then the discovery was made that H. H. Rockefeller, a small farmer near Sprlngdale, in the heart of the big county, had sold out and moved away only a short time before. He had an old father with him and was some thing of a mystery to the neighborhood. TORNADO HITS LA CROSSE Plays Havoc With Buildings and Thousands of Shade Trees. LA CROSSE. Wis., Aug. 11. A tornado that swept through the city' at 8 o'clock thlo morning did great havoc to factories, residences, churches, elec tric companies and laid low thousands of the most beautiful shade trees. The tornado was accompanied by a furious rain. CONTENTS TODAY'S PAPER The Weather. , ' YESTERDAY'S Maximum temperature, 88 degrees; minimum temperature. 67 de grees. ' TODAY'S Fair and warmer; northerly winds. Telegraphers Strike. Secretary Russell may call all telegraphers' from the keys tomorrow.- --page 1. President Small and Commissioner Nelll ex change telegrams. Page 3. Labor Commissioner and strike leaders to hold conference in Chicago. Page 1. Foreign. Continued fighting between French and) Moroccans. Page 4. General Plcquart, French War Minister, In sulted by Insane laborer Page 4- Germany equipping army with airships. Page 2. Domestic Pennsylvania state troops called out to pro tect people from Black Hand outrages. Page 1. Commissioner Knox In further report on Standard Oil says prices are lower abroad than at home. Page 1. Harrlman attends church in Omaha. Page 1. Addicks, once mighty, now pursued by cred itors, is sued for divorce by wife No. 3. Page 2. Pacific Coast. Telegraphers at Seattle awaiting orders to strike. Page 4. Woolen mills at Oregon City fear action of new truant law. Page 3. Portland and Vicinity. Democratic slatemakers put on Chamber lain for Senate and Lane for Governor. Page V Difficult problems come before City Council this week. Page 4. Oregon apples find favor in Orient. Page S. Portland Western Union operators expect to be called out tomorrow morning. Page 4. Enrollment at Multnomah County Poor farm Is biggest In history of Institution. Page 9- T. Cader Powell tells of rich Nome beaches. Page 9. Wireless message received here from trans port en route to Orient. Page 9. Beavers and Commuters break even In final matinee. Page 5. Dr. Jenks, of National Immigration Com mission reaches Portland on tour of in vestigation. Page 8. Dr. John K. Straton. of Chicago, preaches on need for return to God of fathers. Page 12. Rev. Everett M. Hill preaches on the .young woman of the smart set. Pag 12. LAIN IS SLATED FOR TOGA Party Leaders Certain He Will Run. CHOOSE LANE FOR GOVERNOR Mayor's Coy Attitude Also Heavily Discounted. WISE ONES NOT DECEIVED Hold That Published Interviews Are Intended Only for Public Con sumption Word for Sheriff ; Montague for Mayor. OREGOX DEMOCRATIC "SLATE." United States Senator George B. Chamberlain. Governor of Oregon r. Harry Lane. District Attorney, Multnomah County John Manning. Mayor of Portland Richard W. Montague. Sheriff, Multnomah County Tom Word. Foregoing are the names of some Demo crats selected by friends and admirers and war horses in general to fill the big of fices in Oregon when the time comes around to elect successors to the present Incumbents. In this era of success for the ambition of Democrats to hold high office In Oregon, standard-bearers In the ranks of the once forlorn host are not nearly so backward and hard to And as in the days of yore and already specula tion is running rife In the inner circles. The biggest plum to be picked is the United States Senatorshlp and the Demo crats are after it with seven-league boots. Statement No. 1 is bound to be injected forcibly 3nU tfce campaign, and it: Is the fond hope that some popular Democrat may be able to capture the people's vote and thus ride rough-shod over party lines, even though the Legislature should fairly swarm with Republicans. , All Eyes on Chamberlain. That practically every Democratic eye Is turned on Governor Chamberlain as the Senatorial candidate of his party Is gen erally conceded. There has been some talk of ex-Senator John M. Gearln, and in fact the Governor himself has breathed the soft Impeachment for the ex-Senator's benefit. But the Governor always was famed for his politeness. Perhaps, as between these two, there will be more or less of the Alphonse-Gaston stunt, but that Is about all. so the wise ones say. It looks as if Governor Chamberlain will be asked by his party to make the race, and it Is not improbable that this will be brought about by a Democratic state con vention, which will be called before the next primaries to elect delegates to the National Democratic Convention. Besides this, Mr. Gearln owes the past glory of the togo to Governor Chamberlain, and it is far from probable that he would con sent for a moment to be a candidate If there was the least likelihood that his po litical benefactor would enter or would be asked to enter the race. Beside this, Gearln ran once and was defeated, whereas the Governor came out of the same campaign with James Wlthycombe's scalp dangling from his belt. Lane Looks to Salem. 1 However, subscribing to the doctrine that "sufficient unto the day Is the evil thereof," Mayor Lane refuses to disgorge a single syllable when charged with be ing a candidate for Governor to succeed Chamberlain. But the war horses are freely talking him for the place, and nothing but the Mayor's veto will serve to check this complimentary bit of gos sip. Close friends and admirers of the "little doctor" say that he Itches much for the big state Job. The Lanes have always ridden high up In the official bandwagon. The "little doctor's" grandfather before him was Governor of Oregon ere it blossomed: into statehood, and his uncle. Lafayette Lane, waxed eloquent in Congress. The doctor is twice Mayor, of Oregon's metropolis. and his vision, bo they say, goes shimmer ing adown a vista of even greater great ness in emulation of his forbears. Manning Boom Growing. Multnomah County next year will elect a District Attorney, and there is wide spread speculation as to whether John Manning will be a candidate for a sec ond elective term. Among his close friends Manning is not regarded as a can didate, but there Is a general feeling that he practically will be forced to take an other term. He is looked upon as the strongest man in his party for the place, and already members of both parties have urged him to come out for re-election. Manning's act in clamping down the lid on Sunday saloons, a movement which started a reform wave over the whole state, and In driving human vultures out of Portland's North End resorts, created a boom for him that is gaining In strength and It looks very much as if the next elec tion will find his name on the ticket. Word a Sure Winner. But one man is talked of for Sheriff on the Democratic ticket, and that man is Tom Word. That he will run seems cer tain. He could have been Chief of Police CHAMBER under Mayor Lane for less than the ask ing, for it-was offered to him. but Gritz macher is still Chief. This is said to be because Word was saving his ammunition to succeed the man who succeeded him. At this time Word is the only man In the Democratic camp who looks good to the leaders, and undoubtedly is the only man they have real hopes of electing. If Mayor Lane runs for "Governor he will leave a Democratic hiatus at the City Hall. The war horses freely admit that it is a little early to talk of who might be run for his place, but Richard W. Montague, the man who Is responsible ! Y I Charles P. Nelll, Commissioner of Labor, Who Is Negotiating With President Small Toward a Strike i Settlement. for Lane's election both times, has been mentioned. "If Montague can elect Lane, why can he not elect himself?" ask the wise ones, with looks of wisdom the while. And thus has Montague's boom been launched. FIGHTING FDR THE CANTEEN SPANISH WAR VETERANS JOIN WITH ARMY OFFICERS. Plan to Overwhelm Next Congress and Get Back Old Order W. C. T. U. Preparing to Fight. WASHINGTON. Aug. 11. (Spe cial.) The fight to restore the can teen at Army posts is to be re-xpened with renewed vigor next Winter. Plans have been perfected for making a strong appeal to Congress to wipe from the statute books the anti-canteen legislation. All prominent of ficers of th6 Army In their resports to the department making suggestions for the improvement of the Army urge the re-establlshment of the canteen. Aside from the great mass of these reports, which may not be considered to express a disinterested opinion, the Spanish War Veterans are sending thousands of letters in behalf of the canteen. The veterans last year opened a campaign which was vig orously prosecuted until Congress re fused to amend the law. They have prepared once again to make a fight ana expect to win this time with the argument that the W. C. T. U.. the liquor dealers' association, and dis reputable resorts have combined to prevent the re-establlshment of the canteen. When some of the literature which has been prepared is circulated the W. C. T. U., which forced Congress to abolish the canteen, will put on its armor and enter the list in repudia tion of some of the charges concern ing the Interests which are alleged to be working with it. The veterans seem determined to Join issue, and lively times may be expected when Congress meets in December. LEGAL WORK ALL BY PHONE TJNIQITE PRECEDENT ESTAB LISHED IN WYOMING. Arrested, Summons Served, Lawyer Retained, Plea Entered and Sen tence Imposed by Telephone. CHEYENNE, Wyo., Aug. 11. (Special.) With 35 miles of hill and plain between the Judge and accused. Justice Carroll this morning took up the case of Albert Bristol, charged with assault and battery on the person of Miles Fltzgereld. The defendant entered a plea of guilty, and the Judge Inflicted a fine of 115 and costs. Yesterday morning, at the Bard ranch, 35 miles from Cheyenne, Albert Bristol pulled Miles Fitzgerald off a mowing ma chine and gave him a severe thrashing. Fitzgerald telephoned to town a com plaint against Bristol and a warrant for the arrest of the latter was issued. Bris tol, when informed by telephone that he was wanted for assault and battery, took up the matter with Attorney Ross, of Cheyenne, retaining him by telephone. This morning Attorney Ross appeared before' Justice Carroll and said Bristol desired to enter a plea of guilty. This plea was received by the Justice over the telephone and he inflicted a fine of $15 and costs by telephone over 35 miles of wire connecting court and defendant. Bristol informed the court that r.e would send a check for the amount of the fine by first mall, and this ended the preci-dent-establlshlng Incident. Gompers Hurrying to Chicago. DETROIT, Aug. 11. President Sam uel Gompers spoke at the Epworth League Chautauqua at Colfax this aft ernoon and hurried to Des Moines and took tne train for Chicago. He declined to discuss the telegraphers' strike ex cept that he would be in Chicago sev eral days. CHEAPER ABROAD THAN AT HOME Smith Reports More on Standard Oil. PRICES VARY ALSO AT HOME Monopolistic Power Used to Swell Profits, CHARGES RAILROADS MORE Discriminations Make larger Earn ings Than Margins Between Raw and Finished Product Many Cents Difference Is Made. WASHINGTON. Aug. 11. (Special.) Further startling disclosures of the ma nipulation and control of the petroleum industry by the Standard Oil monopoly are made In the report of Herbert Knox Smith, Commissioner of Corporations. Discriminations In prices are exposed In the report which charges that In the busi ness of selling petroleum products in foreign countries the price policy of the Standard Oil Company has been to sacri fice the Interests of the American con sumer for the purpose of securing the Standard's foreign business. The price discriminations in domestic trade and railroad lubricating oils are shown up. These discriminations against domestic trade alone, charges the report, have contributed more to increase the Stan dard's profits in recent years than were realized from the margins between the price of crude oil and the prices of Its finished product. Much Oil Is Exported. Treating on the disparity of prices of oil for domestic and foreign trade. Com missioner Knox says: A very large proportion of the petroleum products manufactured In th United States Is exported. This la especially true of Il luminating oil, the most Important product, of which from 55 to GO per cent Is nent abroad. The prices in the United State?, particularly during recent years, have been very much higher than the foreign prices, and the conclusion Is irresistible that the Standard Oil Company baa made the Amer ican people pay for the maintenance of lta dominant position in the foreign trade. Chief Interest attaches to the comparison of domestic and foreign prices of illuminat ing oil, although discrimination against the domestic consumer appears also in other classes of petroleum products, particularly lubricating oil, which la also an important export. The comparison of domestic and foreign prices may be made in either of two ways: (1) The relative movement of prices in the domestic and foreign markets may be compared for a series of years without refer ence to the absolute level of prices at a given time as determined by the subtrac tion of transport and other marketing costs. A conspicuous and prolonged change In the relative movements of prices, un favorably to the domestic consumer, Indi cates the probability of undue price dis crimination without reference to the abso lute difference in price. (2) A comparison may also be made of the absolute level of prices, after taking1 account of transport costs, marketing costs and duties. Increase in Export Price. The excess of the average price in the United States over the New York export price in ISflU was 2.9 cents. By 1004 it had Increased to 5.4 cents. In 1S09 the domestl price stood at 1.9 cents below tne Hamburg price. In 1904 it stood at l cent above the Hamburg price. In 1101 the domestic price was 0-4 cent below the Iondon price. Dur ing the first seven months of 1905 it was? 8-4 cents above the price In London. From September. 1807. to December, 1S99. the United States price averaged 3.4 cents abovd the New York export price, while from 13 ft 1105 It averaged 5.1 cents above It. From 187 to 1819 the domestic price averaged 1.2 cents below the Hamburg price, while from 1903 to 1905 It averaged 0.4 cent above. From October, 1900, to December. 1902, the domestlo price averaged 01 cent above tha London price. From January. 1103, to July. 1905, It averaged 2.8 cents above the London price. The erfect of these changes in the relative prices In this country and In - the foreign trade can not be fully appreciated without taking account of the fact that there are large elements of cost entering Into both. In other words, a change In prices repre sents a very much greater relative change in profits: In fact, it may mean the differ ence between an enormous profit and no profit at all. In comparing the absolute level of do mentlc and foreign prices of illuminating oil It is necessary to take account of the dif ference In the quality of the oil. Much of the larger part of the oil old In the United States Is water white, and the average price computed by the bureau represents the common grade of water-white oil. The foreign prices, as already stated, represent standard-white oil. which constitutes the great bulk In the export trade. The normal difference in value between these two klnda. of oil is about 1 cent per gallon. Home Prices Higher Than Foreign. The figures show a very remarkable excels In the American price above the foreign prices-, particularly during the latter half of 1904 and the first half of 1905. During the latter half of 1904 the price averaged for the United States 10.3 cents), as contrasted with, 6.92 cents in Germany, 6.42 cents in the United Kingdom and 6.49 cents In Denmark. The excess of the domestic price, after allowing 1 cent for difference In quality, ranged at that time from 2.38 cents to 2.88 cents. During the first half of 1905 the extraordinary decline In the prices in the Ulnted Kingdom increased the effective margin between the domestic price and the price in that country to 3- IT cents. The following statement shows the average prices of illuminating oil, lese transport charges and duties. In the United States, Ger many, the United Kingdom and Denmark for the entire period fir which the respective foreign prices are available, and also pre sents similar comparisons, for the single month available, between domestic prices and prices In the Netherlands and Belgium. The prices are In cents per gallon, and in computing dif ferences 1 cent is allowed for differenoe la quality: Average XTnlted States price (June, 1903, to August. 1905) 10.3 Average German price (June, 1903, to Au gust, 1905 7.3 Excess of United States price (less 1 cent) 2.0 Average United States price (January. (Concluded on Page 3.)