Los Angeles daily herald., 1886-03-12
The American Eagle AFTER tn,
HEussfnm Hear,

i
A well informed correspondent of the
Pittsburgh Dispatch unfolds the. great
plans Of the Standard Oil Company to
control the oil supply Of the Russinl
possess ons around the Caspian Sea
The scheme is representative of the
spirit and grasp Of American enterprise:
| 1.-THE petroleum market evidently
rea ched a temporary bottom last week,
but the reaction has not been so violent
and sudden as was to be expected. OF
course the Standard has permitted the
rise, whether II backed is or not Its
reasons for so doing are apparent. The
refined quotation having been knocked
off to suit the declining crude quota
tions. and foreign demand still ruling
quiet, shows disposition on the part OF
exporters to wait. for bottom. The ad-
vance Of these few days seems to have
indicated TO them that bottom had been
reached, as the charters have gone away
up, with more to follow It is still no
table that neither New York or Euro
pean quotations have advanced any, and
the inference is that the Standard peo.
pie have enough refined oil on hand to
supply the export demand without tax
ing their refineries beyond their natural
capacity. / have once or twice referred
to information that led me TO believe
stocks at the seaboard were heavy. l
have further information to the same
effect, that seaboard stocks Of both
crude and refined are above the average,
though the Standard has been paying |
good prices for the stuff. An export |
movement is wanted to cut down the |
stocks some, and before it is replenished |
again shipments may be decreased ma
terially, and prices depressed cor
respondingly.
1t is the great question with the spec
ulator to know how far prices may be
pushed up for the present to encourage |
the export movement, and how long |
they are likely TO be sustained after they |
are up.
As tending to throw some light on
this question, / am told by veteran oil |
for game OF such size n the Nobel
Brothers and their Russian petroleum
field. He says they have got things in
shape to depress the crnde market much
lower, and that they will undoubtedly
do it. Refined will be marked down as
well, and with cheap American oil the
present Russian markets will be invaded
with all the push chat the Standard is
capable Of, until the Nobels come to
terms. The Nobel Company is known
to be on the short tack, imminent dan
ger of defaultiDg interest on its bonds,
which were foated to the ex-
tent of several million roubles.
in the European capitals, primer
pally 5Berlin, about two years ago.
This is the factor counted on in bring
ing the SWISS Russian princes on their
knees to Mr.. Rockefeller. As the
scheme is outlined, the Standard pro-
poses to guarantee this interest. if it is
given control of the business in Russia,
and then to shut down all works there.
thus enabling it to put refined to any I
price 1t pleases. Such plan may APP
pear to be visionary, but the undertak q
ing is not much greater than others that /
have been successfully carried through [
by Mr.. Rockefeller, the most remarka- +.
Bile strategist in the word. When ex-
amined INTO closely, there is nothing
very difficult about it so far as outlined. :
But beyond, there is difficulty before
which Rockefeller and his whole clan
have good reasons to hesitate. namely,
autocratic government.
The Nobel Company and its bondhold-
RS may be compelled to accede to any
reasonable terms dictated to them by ]
uch power as the Standard, but the :
Russian government might not prove
uch willing victim. The great bear
II Europe and Asia might insist on being
he great bear in the petroleum market,
eize and confiscate the Standard Nobel
works and proceed to operate them In
Iuch an event the American eagle would
% compelled to scream for the rights Of
he greatest monopoly ever known. ,
5ermany and Austria would have TO for
ret the American hog and Kelley and
pack the eagle in demanding the interest
1ue to the Berlin and Vienna money
changers, and the whole would consti- {
,ute pretty spectacle. In this view of
The case the Standard oil barrel was :
rolled into politics none too soon to en-
lble Mr.. Whitney to get our navy start
ID in the way it should go, and now that
Mr.. Whitney is there, it is his manifest
iuty to bestir himself in the case. Nor =
hat these extreme possibilities are shad- :
'ws of the near future, but because it
axes time to build and equip navy,
md we may have to whip Chill or some 7,
'iher like place before the trouble be- e
ins with Russia. u
There are endless possibilities follow 3 3
ng in the train Of reasoning of this oil 5
nan who says the Standard is reaching al
Dr. the Nobels, and even if considers.
ion of the subject gives no light to the
psculator ON the course of the market,
ought to give some light to the
houghtful man of affairs.
Almost the only ex porter of petroleum n
be Standard is closely linked to our re- N
ltions with the foreign powers, and ~
therefore, capable of producing trouble
any time. Up to its eyea in politics, 4
trouble was once begun it would show q
p with considerable influence in favor 4.
wrapping in the drapery Of tae stars
nd stripes for protection, and in favor
making Uncle Sam stand up for its =,
iterests. This is a danger inherent
18th monopoly almost as much to be n
Jared as the gradual robbery OF the
hole people for the enrichment Of the a