The Petroleum Centre daily record. [volume] (Petroleum Center, Pa.) 1868-1873, 1872-10-11
lCRUDE AND REFINED.

The oil business 10 divided as above, will
Interests depending on each other, yet eve
separate snd divided-never for momen
ideatiesL And TO this diversity Of inter
ssts existing. where the interests should bt
ons, We may truthfully sscribs most oil The
fluctuations in values which characterize
the business, and these are 90 rapid often 81
10 overwhelm firms long established and
possessed Of means 10 financial ruin.
A good paying price for crude, sustained
any length Of ti,ne, 90 stimulates produce
slon snd mulsiplies the wells as 10 glut the
market, while a large margin between crude
end refined, IN favor Of the latter must in-
crease the number Of re6usiies until COM
petition makes refining worthless. The
posture Of sffairs in the oil region to-day Is
directl, .rsosab.e 10 these causef and effects
only.
Too much crude 10 the result Of the prices
Of oil In 1901, while the Rehoer's Com
b,nation orig stsd 10 the necessity for cut
ting down The refining capacity of the coun-
try and dividing Il equitably, or at least
satisfactorily, 10 the different localities
the Greek, Cleveland, Pittsburgh, &c.
While then the producers we're without
suy effective organization to promote their
Interests, Q few energetic and able men
among tho renners got the "Combinstiou"
into working order and were able to dam
up .be increasing production till the stocks
bore the market down far below paying
price, then they bought oil the oil they
wanted, refined Il, and had 100000 barrels
ready for market at margin OF $500 per
barrel over and above the ordinary profit.
The shutting down movement Of the pro-
ducers, which seemed forced upon them to
reduce stocks, came just in the nick Of time
to enable the Re6ner's Combination to nn'
load and all their Golfers. Henoeforth the
Combination has money and prestige and
esu work far more effectively 10 the future
unless chsckmated by the Petroleum Proc
ducsr's Association or some similar organi-
Eation.
DAs means to even . temporary success,
the S0/day movement was perhaps entitled
10 trial. It 10 at best remedy that alls-
via,es only, but does not cure. If we rely
90 this measure hereafter as specific, the
will shut 10 down and start US
ru ~ tta oood plaaauYe
Our opinion 10 that the prosperity Of the
oil regions, hero and elsewhere, lies in the
consolidation Of the producing and refining
intereats in the person OF The producer, and
further, that the place to refine oil 10 just
where you hud II.
We Will suppose that the individual en-
terprise OF half dozen producers 10 a die.
trict, either rents, buys or builds refinery,
aud offers to refine oil Of y certain gravity
A, As, As or 47-ior q certain toll, no mat
ter II The refiner's co mbination have bought
OIL the refioeries 10 the country nearly with
The avowed object OF keeping them idle. 1t
won't require much time TO build more, and
ss for money, ws have enough. No matter
bow II is done, either BY joint stock oompa>
uies Or private enterprise, 90 that every dis
trict of the Petroleum Producers Associs-
lion has refining capacity to refine oil the
crude produced, charging only fair TOLL
The refining business will then bs confined
10 this region, and Its profits will help us to
build more railroads for outlets II those here
show any disposition to discriminate in ia
vor Of the Combination.
Every producer 10 this case will offer only
refined oil for sale. Crude will not be In
the market. Instead Of one bnyer-the re-
fiuer-thers will bs just &c many ss there
are persons wanting an artificial hight. 1t
some such plau % this be adopted, whereby
the producer and rsfiner really have COM
mon interest, and spend their money and
circulate It In building mp the country 10
which they live, instead OF contributing to
the success Of rings, corners aud combina-
tious, whose funds are divided In distant
places, then our prosperity Is ASSURED
Cleveland aud Pittsburgh may 60 into the
pork trade, and the Sbylocks who have fat
tended OF Of Us 90 hong may 60 TO work or
into exile for oil We care.
As producers, then, let US handle the oil
from the moment It is pumped from the