The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-03-03
P H II R OF f u Nj :
Report of the United States
Revenue Commission.

Highly Important InfoSmauOn Con-
cerntng the Present LOmdlttOn OF the
On Tradt-prUpOsrd Kepesl Of the
Dusy ON Crndt-8G, ,O0O,OOO per annuH
Revenue tEstbBattd froW Renned-
no Change Va tha Deity DpOn Naphtha-
Calculations as 30 1he FuIure sup
plies She Magnitude OF che ExpOrt
Trnds, Etc.
We have just received from the Treasury Depart
The special report OF the UnI cd otltci koVo-
nue. Collector PeuO cum and he Petroleum
Trade considered as an ava lab source OF national
revenuo.
he report enlers into history of the discovery of
the oil, aud prey1nrs tile results OF mans 6cieudfc
anal, oil the various elements that enter IDto i.J
Notwithstanding IFS great Illuminating po Ier 1--WE
nie tolul, petroleum, owing TO it's peculiar smoky
fame, wouC not nave come into general use had
The way been prepared for by other discoveries
and i3ventous some OF them datIngbac6 in the last
century or before.
Rev john aytop, towards the close of the six.
tcCnth century, discovered gas and its UsIIty
Ter ILLUMINATING purposes. but no a pication was
mad OF The discovery until the year l1yl when Mr..
MutoUck, 1 Cornwall ENGLAND, commenced a
series OF experiments the result OF winch was
encouraging that DIR. Henry and others became IN
teTes ed III their lurher prosecution. G2s ives at
length introduced INTO some manufacturing ostab.
lshments. In the years 1903 and lSJh the Lyceum
theatre in London was lighted with gas and by the
year 1916 it had become quite common both in Eng
land and Fl ance both OF which countries claimed
the discovery. In few yeaiJ more its use had eX-
tended 10 all parts of the civilized world
Ihe discovery and the common process of distil-
aton used for production OF gus, and various ex-
penments with different Goals, peas and oils made
IN connection Herewith, and with different lamps
and burner for the more economical use of gas,
have naturally resulted in the manufacture OF the
rs oTocaTbon OILS from the Goals ana shacs IN the
ant OF purifying and refining the oils vs. now prac.
tsed, and in the invention of the kerosene pero-
leum lamp, which has removed tho objection TO the
OF these oil Tor iiluminatln purposes.
The inventions, with the application of the Arte-
sian well, by which the existence OF extensive sub.
teITaIe oil deposits has been demonstrated, and
the present enormous produstOn has been chiefly
brought abour, have ADDED greatly to the wealth of
the world aid indirectly to the advancement of
civilization, by reducing the cost OF artfcla light.
As an article OF foreign trade, get some idea of
the value OF Petroleum from the folio wing exports
from New York, Boston Philadelphia, aud Balti-
more DUNG the year 1867
Crude.... .193617
Rein Oo9I
Naphtha ,...'.....'......'....... EO6ll
Total barrels. =. .......................s .s14115
Nmet, two thousand, two hundred bcrres load ng
ard unclecied, Janaa ' 1885, also reported.
several minor shipments are omitted from these
lne report next proceeds to examine the .Ast
PROFITS OF THE TRADE,
The recent prices IN New York, packages inc uded,
ere, for crude per gallon, 291 to 30 cents; refined
"pl1me hight straw TO white" 1l0 fire est 48 cents;
MAJ h ha 12g cent reslduum, Sc to 81 per barrel.
The price OF gold is 81 373; and these prices
eqyyalent to the following prices in Rold-for crude,
q 20 cents; refined. "a $40 cents; napatha 1-1O
cents feeluuunl, G4 90 10 % W.
Aed to those tho ireghts 10 London, for example.
which will cover 610 cents per gallon. Allow
cents per gallon TO cover Insurance. leakage, and
age and other charges on the other side, and
find that crude viii cost the shipper in London 20
conIs DER American gallon. Refined will cost the
shipper IN London e23 cents. Now, although the
prices abroad are al present higher il will be re-
membeled that IN July last the English producers
of coal oil were selling their best roined oil at Is.
cd. to Is ID per gallon, which is equal to 2.10
American gallons. These prices would be equlya-
lent to so and 81 2S cent. per American gallon. The
.~lla afn0Avr
at Is Sd. per gallon, or Is cents per American gall
lon SO that the English producer would have
q s ns per tor Svff the our in
quality, and his margin would still be Isl cents per
gallon. 1t is not probable that the cost hes mate
rally increased rs the supply OF coal, labor and
money has not been subject 70 fucuation. 1t olows
that the precent profits the foreign producer must
be very great, and the increasing demand for the
article gives him such certain market that he has
ducement to destroy our trade by lowering his
prices but it also follows that II the demand shouid
ial of greatly, we Will be driven from the markets
OF EurOpt, unless there should be reduction OF the
cDarReF, expenses, ana burdens on our community
upon this side. rne only advantage we have is in
tie finer quality of oil, winch 1t to be pre-
terred by the better clcss of consumers But If the
difference in pTce should increase greatly that pre-
LIE, us see whether the rsfner can make any profit
in his business buylng the crude oil at thirty cents
and selling the refined at forty-elght IL Will be re-
membered that one gallon Of crude Will yield three
fourths of gallon of refined, or Que ana one-third
gallons Of crude will yield one gallon sf refined
The cost of tho oil itself therefore, is forty cents,
aud the cost of refining is five cents per gallon. A
number Of the rsfners have from three to four hum
drcd thousand dollars invested The depreciation
OF the properly 10 great and the risk OF total loss by
fire is also very great. Now Will three cents per ga
lon difference between the bare cost and the selling
price of refined pay for all tins depreciation and
risk and for the use Of the capital and yield living
pIofts 1t 10 evident that it will not
tIsin evidence that even in November last, when
pIicss were much higher than at present, WITHIN
two miles of 1itusVille more than one hundred wei 8
had stopped, ms3t of them On account OF the Gov
erDment tax, beng wells which would yield from
FIVE 20 seven barrels per daY Generally these
were owned by poor men, who were greatly OPP
pressed by the tax.
PROPOSED ABOLITION OF THE TAX ON CRUDE.
If it be true that a twenty barrel well worked
upon q royalty entails lc1J on the owner OF ten
business rs whole, IS losing business, and no
u ther argument is needed to prove the ncccJtY of
the inamediate abolition OF the tax upon crude.
II may be stated, however, as the unanimous
opinion OF the Commission, that Oh all taxes, the
most Just and the least obnoxious are those iaid
equally upon accumulahons Of capital, and the most
unjust and most obnoxious those which trammol
and burden the process of production or tend to in
crease TO the poorer classes the expenses of living In
both of these respects the duties on oil are ebjecon-
aDle and therefore, while the Commission have pro-
posed no immediate reduction OF the tax refined
OIL tbey have expressed the opinion in their general
report, that hereafter that tax should also be re-
duced.
PRKsENT DAILY PRODUCTION OF PETROLEUM.
The average number of barrels paid on for the
months OF November and December, with the
fifteen per cent added. gives daily production
of 100A barrels III add 1896 per cent. for the
amount consumed as tue, waste at the VOLS and
loss BY expectation the present yield may be stated
approximately at IL 900 barrels Per day, which
agrees with the opinion OF most OF the jndicious
| observers who have reportsd TO the Commission
| the results of observations r. 1do on the ground.
The TAX has been paid en- lew barrels IN missouri
and California The table also confirms the state.
ments respecting the small yields in West Virginia
and Kentucky. These data warrant the following