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ELL VOLUME 5. ROSWELL, NEW MEXICO, WEDNESDAY EVENINQ, AUGUSl 7 1907 NUMBER 135 'I A HP A TA RC SECRETARY TENDERED THE APPOINTMENT AND DECIDES TO ACCEPT. THE PEOPLE PI EASED Albert B. Fall Will Be Offered the Office of Attorney General, It i Said, and Louis O. Fullen is Slated for the Job of District Attorney. Governor Curry Leaves After Ban quet Last Night. Although it was to have been a se cret until the appointment comes from the President, it leaked out last night that Nathan Jaffa, cashier of the Citizens' National Bank of Ros well, had been tendered the position of secretary of New Mexico and that he had decided to accept, when the appointment is made. The offer came from President Roosevelt, who makes the appointment, through Governor Curry, who first spoke of the matter to Mr. Jaffa yesterday morning. It came without solicitation upon the part of Mr.. Jaffa, who at first dis missed the, thought of accepting, say ing flatly that he could not afford to accept me omee. However, arrer con sidering the matter all day, Mr. Jaf fa last night, at about eight o'clock, gave Governor Curry his answer, of acceptance. Governor Curry's letter to the Pres ident, telling him of Mr. Jaffa's con sent, will not go forward to Oyster Ci HON. NATHAN JAFFA. Bay until after the inauguration, Aug. 8, and the appointment will not be made before the 9th, and possibly later. When the news leaked out last night that Mr. Jaffa is to be secre tary, it was not a half hour until al most everyone down town knew It. The report was the cause of general rejoicing and congratulation. Practl- oelly everyone Is. glad that Governor Curry chose Mr.' Jaffa for the place (for It is upon his selection that the .President will make the amtointment) aod all are equally pleased that Mr. Jaffa has decided to accept. Of course it will' be a financial loss to Mr. Jaffa and he will have many things to con tend with that would not have both ered htm in private business, but the spirit of patriotism that has prompt ed him to take upon himself the bur den of this public office is highly commendable, to say the least. The removal of his family, after 21 years or residence here, away from mends and associates will not be the least of his hardships. All bis Interests, business and otherwise, are here, and in leaving' he will do so with the In tention of returning as soon as the exigencies of the case permit. With the report of Mr. Jaffa's se lection came other reports almost as interesting to the people of the Terri tory,, and especially of the Pecos Val ley. It Is reported that Governor Cur ry will offer the place of attorney general to Albert B. Fall. Mr. Fall Is said to fee making $100,000 a year or more, but has consented to serve for a time as attorney general in the Interest of ; Territorial governmental Harmony. Mr. Fall and a party met -Oovernor Curry and his party in Tor rance today and accompanied . them to Santa Fe. " - Another report 'current is that Lou- la O. Fullen, postmaster, editor and lawyer at Carlsbad is slated for ttie c3ce of district attorney. In place of James M.'Hervey; who has been' con-tlii-rii; ' far saie time the sdviaabUl- ty of resigning. Indorsements, palls, etc., go to show that John T. Bolton, of Carlsbad, will get Mr. Fullen's place as postmaster. The matter of the appointments was the chief topic at the banquet that was given at the Grand Central last night by 56 individual Elks in honor of Governor Curry. It proved an interesting theme and the prospec tive appointees were the victims of many witticisms and bright saying, as well as congratulations and prom ises of support. Nathan Jaffa was toastmaster for the occasion, and among the principal speakers were Governor Curry, Ex-Governor Hager man, Judge Easley, of Santa Fe; I O. Fullen, of Carlsbad; Henry Lutz, of Lincoln; James F. Hinkle, Dr. Kin singer, and W. A. Finlay of Carlsbad. The banquet was a great success in every respect, but. broke up early so that some of the principal guests might leave . with the governor for Santa Fe. The party going over the auto route to the inauguration were Governor Curry, Mr.: and Mrs. J. W. Stockard, Mr. and Mrs. C. L. Ballard, Chas. F. Sasley of Santa Fe, W. M. Atkinson,' E. A. CaSxoon, J. S. Lea, K. S. Woodruff and J. P. Church. They go to the capital on a special train from Torrance today. PROBABLE CONTEST OVER SENATORIAL ELECTION New Orleans, La., Dispatches from Jackson, Miss., say that a second sen atorial primary for Williams and Var daman Is regarded with favor by ma ny followers of both sides. Secretary of State Powers up to last night still had ten counties to hear official re turns from, and the count up to that point showed Williams' lead to be but about 440 votes. The smallness of the plurality which it is now estimated the win ner will have Is given as ground for the belief that a contest over the election is inevitable. The ballot boxes are being watched by the workers of both sides. Eat your meals at the new boarding house, 420 N. Richardson, 25 cents. Mother-in-law at White City its funny Majestic tonight. OFFICERS ARE LOOKING FOR EVIDENCE TO-DAY. The body of Iceland S. - Terhune, found buried in an irrigation ditch on the "Widow Bowman place" east of Orchard Park, was disinterred last night and brought to Roswell. A cor oner's jury was summoned and after they had examined the remains, the body was turned over to the Ullery undertaking establishment. The offi cers are busy today hunting evidence. Uipon removing the body from the ground. It was found to have had the head mashed, one eye being entirely mashed out. It had been buried four feet in a ditch and the water turned on. Afterward the water was turned out of the ditch and then the dirt set tled in the grave, leaving a hole that led to the discovery of the body. Deputy Sheriff O. Z. Flnley was the officer who went to Orchard Park upon summons yesterday and arrest ed Moses L. Lewis, the murdered man's cousin and partner who is ac cused of the crime, oday Deputy Fin- ley and Marshal J. J. Rascoe are working on the case at Orchard Park. The inquest will be held in Roswell as soon as they are prepared to re port. Lewis was arrested largely on ac count of the fact that he was the last man known to have been with Ter hune and because the body" was bur ied. The officers work on the theory that if a stranger had killed Terhune he would not hare buried the body. Other clews that point to Lewis' guilt are that the wagon he and Ter hune used in partnership bad blood on It and blood was found on Lewis' clothes. Lewis is still in jail await ing the action of the coroner's jury and other officers. The undertaker has received word from the dead man's father to ship the remains to his home at Iowa Park, Texas, and to have the wife and child accompany them. The shipment will be made after fte inquest. The next negro who attempts to steal either cantaloupes or pumpkins from a certain patch In the south western part of town is going get a load of shot for good measure. A. R. Cheever and George R. Var ney were passengers out on the auto this afternoon. . If this local .Item appears dim, you should hare your eyes examined by L B. Boellner, Jeweler and Optician. Cazier will sell rou the best land in the Pecos Valley sot the leist mon ey. Titles perfect. Dexter. N. M. 27133 Nice and cool at the Majestic Cheapest money ' to loan on city and country property. , Woodruff. & DeFreest. ICCtf . I would like to show, yon that new Man t si clock. L. B. Boellner, Jewel er and Optician. tf REPORT ON OIL PRICES THE COMMISSIONER OF CORPORA TIONS SUBMITS FACTS IN RE- GARD TO OIL INDUSTRY. OIL TRUST RESPONSIBLE The Report Says the Standard Oil Company Has Been Responsible for the Prices of Petroleum and its By products for the Last Twenty-five Years. Constantly Raises the Rates. , ' r tf . Washington, D. C, Aug. 6. The following letter accompanied the re port of the Commissioner of Coropo- rations, which was delivered yester day to the Department of Labor and Commerce: Department of Commerce and Labor, Bureau of Corporations, Washing ton. August 5, 1907. Sir: I have the honor to submit herewith the part of the report on the oil industry that deals with prices and profits. From the point of view of the pub lic this is one of the most important parts of the report. Previous reports on this subject on the "Transporta tion of Petroleum" and on the "Po sition of the Standard Oil Company in the Petroleum Industry have dealt chiefly with the methods used by the . Standard Oil Company, the dominant factor in the industry, to secure and maintain that domination, and have described the extent and character of its control; that is to say, the facts already made public have had to do with means and meth ods. The present report, on the other hand, sets forth the" results "of such methods and the effect thereof on the consumer and on the profits of the Standard Oil Company. These results largely take the shape of prices. They must be stated in the form of tables and computa tions, and the facts thus presented may of themselves seem abstruse and uninteresting. But from them are deduced more certainly than from any other form of evidence the con clusions showing the definite policies and tendencies of one great industrial combination having a serious impor tance to the public because affecting the conditions of living. The funda mental tendencies thus displayed throw light on the great problems of industrial combinations in which the country is especially interested. The Standard Oil Company is re sponsible for the course of the prices of petroleum and its products during' the last twenty-five years. A former report demonstrated that this com pany has maintained its dominant po sition since 1874. The present report first sets forth with great complete ness the course of such oil prices du ring the more recent period, practi cally for the last ten years, long af ter the control of the Standard was complete and the industry had be come well established. It then shows roughly the price history for the en tire period from 1866, or practically since the beginning of the industry. This giveB an opportunity to com pare the course of prices during the earlier competitive period with the course of prices during the later mo nopolistic period. It shows what these prices actually have been. It also shows that they would have been lower during this later period "under normal competitive conditions and in the absence of any such overshad owing combination as bas actually existed. These prices show directly the ef fect that the existence of tills combi nation has had upon the consumer, and also the results that have ac crued to the combination itself by way of profits. We can thus arrive at just conclusions as to the way in which the Standard has- used its great Industrial power. ' The Standard bas repeatedly claim ed that H has reduced the price of oil; that It has been a benefit to the consumer, and that only a great com bination like the Standard could have furnished oil at the prices that have prevailed. '- Each one of these claims is dis proved by this report. - .The Standard has consistently us ed its power to raise the price of oil during the last . ten years, not only absolutely but also relatively . to the cost of crude oil. The statistical basis for this con clusion is very broad, founded upon a ratt number of prices directly col lected by the. Bureau from thousands of retail dealers throughout the coun try as well ,as from various other sources, arranged and averaged with, the utmost care, verified wherever necessary, and in the final results ap portioned or "weighted" according to the amount of business or quantity of the article involved. Very careful computations of the cost of refining, transporting, and marketing have ibeen made, by-products have been in cluded with , carefully "weighted' prices, and, as will appear by the bo dy of the report itself, these conclu sions, while briefly stated in this let ter of submittal, are the final results from most elaborate and indisputable calculations. These results are given chiefly in the shape of "margins;," that is, the difference la cents per gallon between the cost of crude oil which the Stan dard buys and the prices of the prod ucts thereof which It . sells. . These "margins", of course are the really significant' facts, representing that part of the price for which the Stan dard is responsible. ' Prices of oil products may rise or fall slightly without affecting the pro fits of the Standard because of a change In the price of the crude oil, although the Standard also fixes within certain limits even the price of crude. But the "margin," the difference be tween the price of crude and the price of the finished products, is al ways a true indication of price policy and profits. There are two varieties of raw ma terial of essential importance Penn sylvania crude oil and. Lima crude, oil. The crude oils of the other fields, both by reason of their very recent development and by reason of mark ed difference in quality, do not affect in any significant way the prices herein considered. The average margin between Penn sylvania crude oil and the illuminat ing oil sold by the Standard through out the country, after deducting freight costs, from September, 1897, to the end of 1899, was 5.3 cents per gallon; from 1900 to 1902 inclusive, 6 cts. per gallon; and from 1903 to June, 1905, 6.6 cents, or an increase of 1.3 cents during these eight years. When it is remembered that from 0.7 cent to 1 cent per gallon constitutes a good pro fit on the business, the meaning of an increase of 1.3 cents in the last eight years covered by this report is evi dent, even as applied to illuminating oil alone. 4 - But it must be emphasized that a much greater increase in total margin has taken place in the case of the by products than in illuminating oil, the most Important of which are (in the case of the Pennsylvania crude) gaso line, lubricating oil, and paraffin wax. Including the margins for these by-i products with the margins for the com blned four products, weighted accord ing to the prospective quantities pro duced, the increase in margins for this recent period is still more conspic uous. Thus, the relative average mar gin? for the four products combined for the years 1898 and 1899 was 6.6 cents: for 1900 to 1902 7.7 cents, and from June 1903 to June, 1905, 8.4 cents, or an increase, of 1.8 cents. . Substantially the same conclusions as to the increase of prices appear in the margins for Lima crude. The in crease in its margins is fully as con spicuous as for Pennsylvania crude. The relative average margin for the combined products of Lima crude for the years 1898 and 1899 was 6.1 cents; for 1900 to 1902, 7.1 cents; from 1903 to June 1905, 7.8 cents, or an increase of 1.7 cents for tJie eight years. The tremendous importance of the increase in margins can be fully ap preciated only by consideration of the enormous output of the Standard. The average increase in the margin for the products of both Pennsylvania and Li ma crude oil combined (taking' single years and not, as above, groups of years) from 1898 to 1904 was over 2 cents per gallon, and, allowing a very liberal estimate of one-half cent per gallon (25 per cent) for increase in the costs of production and marketing during this period, the net average increase in profit during these seven years would thus be at least 1.5 cents per gallon. If the same Increase in profit be applied to the Standard's en tire sales of all kinds, the petroleum products in the United States in 1904, the profits for that year would be about (21,000,000 : more than they would have been on the basis of the prices and costs in 1898. As a matter of fact, the known Increase of profits on its whole business as stated herein after, was more than this. Similarly, for the year. 1903, when the prices of oil reached their max! mum. these prices would represent an increase in the Standard's profits on sales in the United 8tates that year of nearly (25,000,000 over the prices and costs in 1898, These figures show conclusively the effect of the dominition of the Stand ard on the amount that the public pays for its oil. - Naturally an increase has also tak en place in the profits of the Stand ard by reason of tills price . policy The increase in annual -proSts from 189 to 1904 was over $27,000,000. ' The total - dividends paid - by the Standard from 1882 to 1904 were 1551. - TROOPS AT CASABLANCA SQUADRON OF FRENCH SHIPS WITH TROOPS ON BOARD EX PECTED AT CASA BLANC A. 300 MOORS WERE KILLED 14 :IV But Only One French Sailor Was Wounded in Sunday's Fight. The Sultan's Representative Takes Ac tion to Assure the Safety of Turo- peana, on . Demand of the French Authorities. Paris, France, Aug 7. The govern ment expects the squadron with Gen de Rude commanding a French expe ditionary lorce on board, wmca pro ceeded from Oran, Algeria, at the highest speed, to reach Casa Blanca this morning. On the arrival of the General at the Moroccan port, the subsequent action of the French forces will be decided upon. Official advices estimate the number of Moors killed or wounded during Sunday's bombardment of Casa Blanca at 300. Only one French sailor was seriously wounded. To Assure Safety of Europeans. ' Tangier, Morocco, Aug. 7. On de mand of the French charge d'affaires, Mohammed el Torres, representative of the Sultan here, reiterated the in structions he had previously issued to assure the safety of Europeans at Tangier and other ports and towns. The French steamer Anatole, which brought news of the bombardment of Casa Blanca. has been requisitioned by the French charge d'affaires for a guard to protect the French consu late to be landed immediately at Ra bat. 922,904.50, averaging thus 24.15 per cent per year. The dividends, how ever, were much less than the total earnings. . Exact infosrmaition as to these earnings is available only for the years 1882 to 1906 and for the years 1903 to 1905, inclusive, an aggregate for these years of about $714,000,000; but from these figures the earnings for the other six years may be esti mated with some degree of correct ness, and it is substantially certain that the entire net earnings of the Standard from 1882 to 1906 were at east $790,000,000 and possibly much more. These enormous profits have been based on an investment worth at the time of its original acquisition not more than $75,000,000. Furthermore, the rate of profit on the capitalization has increased great ly. From 1882 to 1894 the net earn ings averaged about 15 per cent on the capital stock or trust certificates out standing, while the average net earn ings for the period from 1903 to 1905 were about 68 per cent, yearly. These rates of profit and their great increase are strikingly confirmed by the known profits of one important Standard concern, the Waters Pierce Oil Company. The lowest rate of pro fit on its investment was in 1896 23.3 per cent. It increased in nearly every year thereafter until in the first six months of 1904 the profits were at the rate of 47.2 per cent per year. More over, the rate of profit of this company has increased "not "only "In proportion to Its investment, but also per unit of products sold. The average profit on illuminating oil for the year of 1895 to 1899 was 83 cents per barrel, while from 1900 to June, 1904, the average profit was $1.32 per barrel, with simi lar increase of profits on the impor tant by-products. A further verification of the profits of the Standard was' afforded by com putation of profits of certain of Its in dividual refineries. In 1904 the rate of profit bn investment hi these refin eries and in the marketing -concerns distributing their products was as fol lows. Refinery at Lima, Ohio, 37 per cent; Whiting, Ind.. 45 per cent; Su gar Creek, Mo., 35 cents; Neodesba, Kans. 35 per cent; Florence, Colo., 62 Der cent: or a weighted average of 42 per cent, about cents per gallon of crude bandied. This excludes the pro fits on plpe-lhie business. ' The foregoing facts as to the pro fits will thus explain vividly what has .become of the increase in prices and margins on petroleum products during the regime of the Standard since '98 Very valuable additional information is also shown in the report by the fig nres going still farther back and tak ing ap the course eC prices for the per- jod preceding 1897 are much less corn- . piste than for tie later period, an4 can. elusions here must be 'based largely on the course of export prices, which, as a matter of fact, have never repre sented exactly the course of prices in this country, but which probably cor respond to domestic prices much more closely in the earlier periods than in the later ones. Making due allowance for these considerations, however, these longer series of prices are in teresting because they cover both the earlier competitive period and the la ter noncompetitive or monopolistic pe riod, and allow a comparison between the two. They demonstrate the falsi ty of the historic claim of the Stand ard Oil Company that by reason of its extraordinary efficiency it has brought prices to a point lower than would have been reached had business re mained under normal competitive con ditions and in the hands of a number of comparatively smaller concerns. The industry may be said to have been normally competitive from 1866 to 1874, and during that time there was a fall in margin between the price of export oil in barrels and the price of Pennsylvania crude of from 23.7 cents in 1866 to 9.02 cents in 1874 This decline was much greater than that which has taken place since. It is conclusive evidence that further re duction would have been made in the absence of any general combination Moreover, a part of the reduction which took place from 1874 to 1879 under the Standard regime was due to decrease in transportation costs and in railway rates, the rate on illuminat ing oil from Pennsylvania fields to New York in 1874 being 4 cents per gallon, while during part of the year 1879 it was not over 1 .cent per gallon. The construction of the seaboard pipe line during this later period reduced the cost of transportation still further, and it must be remembered that the Stand ard was not the originator of the idea of a seaboard pipe line, but that the Tide Water Pipe Company, then whol ly Independent, first built such a line. Furthermore, the reductions in mar gins since 1879 have been much less than the Standard has often claimed, and such as have occurred have been more than offset by the increased val ue of by-products. In general, even the export prices, which probably show the situation most favorably for the Standard, show a margin during re cent years not very much lower than twenty-five years ago. In 1879 that margin was 6.05 cents; in 1903 the margin was 4.91 cents; and, as indi cated above, in the last few years do mestic prices have risen 'much more than the export prices. In short, it may be said that the great decrease in prices which took place in i.Ie period from 1866 to 1874 was due to competitive conditions, while the much smaller decrease that took place from 1874 to the present un" ier the dominition of the Standard has been due to conditions over which the Standard had no control, has been more than offset by increase in the val ue of by-products, and can not be placed in any way to the credit of the Standard Oil Company. The fact that the Standard does nearly nine-tenths of the petroleum business has been demonstrated in a previous part of this report It now appears conclusively that the result of this domination has been to increase he prices of oil paid by the consumer, ind correspondingly to increase the profits received by the Standard. It is not true to say that only such a CTeat combination can furnish oil at 'he prices which have been charged. Independent competitors, though very small and weak do survive and do bu siness at prices which are deliberately reduced by the Standard within the small competitive areas reached by these independents, and which are much lower than the average prices received by the Standard throughout the country. It is true that, taken as a whole, the Standard Oil Company is a more effic ient industrial machine than any one of its competitors. Nevertheless, care ful estimates based upon data submlt- (Continued on Page Four.) Remember the new boarding house, third house north of the Christian church. Meals 25 cts. It Expert Shoeing. Let us shoe your horse this month. tf we shoe him it will be done right Only $1.50 for new shoes. The Tex as Shop, R. F. Cruse. 33tf Electric fans and an extra good program. Majestic. Record Want Ads. Get Results. New Railroad Schedule. South Bound. Arrive, daily, 6:25 p. m. Depart, dally, 6:35 p. m. North Bound. Arrive, daily, 8:50 a. m. Depart, dally. 9:05 a. m. V. 8. WEATHER BUREAU. (Local Report.) Roswell, N. M., Aug. 7. Tempera ture. Max., 99;" tnin., 70; mean, 84. Precipitation 00; wind W. Telocity 2 miles; weather cloudy. - Forecast, Roswell and Vicinity Fair tonight and Thursday; sta tionary temperature, - M.WRIGHT, -Official In Charge. WILLVOTEON WATERWORKS CITY COUNCIL DECIDES TO PUT THE PROPOSITION OF J. L ELLIS UP TO PEOPLE. THE COST IS $125,000 Council Passes the Ordinance by a Vote of Seven to One. The Election Will Be Held on September 16th. The Ordinance in Full. The Offi cers of Election. The city council met in regular ses sion for August in the council cham bers last night. Mayor Jas. W. Stock- ard presided, and the following alder men were in attendance: Robinson, Bell, Whiteman, Wyllys, Johnson, Church Wiseley and Kinsinger. The minutes of the meetings in July were read and approved. Upon motion of Mr. Kinsinger, it was decided to take up the proposition of J. L. Ellis relative to tiie city is suing $125,000 worth of 'bonds to put in a water system. The proposition came up in the form of an ordinance calling a special election, and the or dinance was passed, seven to one. Mr. Whiteman being the only one present who voted against it. The election was called for September 16th, according to the terms of the ordinance, which is published in full elsewhere in this issue. C. L. Wilson, C. W. Johnson and J. M. Peacock were appointed judges, and Laws Phillips and R. S. Hamilton were appointed clerks for the special election. The voting place was fixed at the garage of the Roswell Automobile Company. The hour then being 8:30, and some of those present desiring to attend the Elks' banquet for Governor Curry, a vote was taken on taking a recess. It resulted four to four, and Mayor Stockard said by way of casting the deciding vote, "Well, I guess we'll take a recess." ORDINANCE NO. 104. An Ordinance Authorizing the Calling of an Election to Vote Upon the Question of the Issuing of Bonds for the Construction of Waterworks. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROSWELL, NEW MEXICO: Section 1. That an election shall be called and held in the City of Ros well on the sixteenth day of Septem ber, 1907, for the purpose of voting upon the question of issuing bonds for the construction of water works in and for Baid City to the amount of one hundred and twenry-flve thou- and dollars ($125,000), and the City Clerk is hereby directed to cause to be published a notice of such election at least once in each week for four successive weeks in the Roswell Dai ly Record, a newspaper of general circulation published in the City of Roswell, New Mexico, the first pub lication to be made thirty days be fore the date of said election. Section 2. At such election no per son shall be qualified to vote except he be In all respects a qualified elec tor of the City of Roswell and the owner of real or personal property subject to taxation therein. Section 3. The election hereby authorized shall be held at the fol lowing polling places: At the East door of the Roswell Auto Company, at the corner of Rich ardson avenue and Second street in the City of Roswell. Section 4. The election hereby authorized shall -be conducted by the following officers: C. L. Wilson, C. W. Johnson, J. M. Peacock, Judges; Laus Phillips, R. S. Hamilton, Clerks. Section 5. This ordinance shall be in force from and after its pass age, approval and publication. Passed this 6th day of August, 1907. Attest: ( J FRED J. BECK, (SEAL) " " City Clerk. Approved-by me on this 6th day of August, 1907. . " J. W. STOCKARD, Mayor of the City of Roswell. Territory of New Mexico, City of Roswell. ss. . I, Fred J. Beck. Clerk of said City, do hereby certify that the foregoing is a true copy of Ordinance No. 104 as the same appears of record at page 163 of City Ordinance Record No. 1. ' Witness my hand and the Beal of said City on this 7th day of August. 1907. FRED J. BECK. (SEAL) -City Clerk. (Published Aug. 7. 1907. Record.) -ft 4 J