New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-09-13
CONDITION OF RUSSIAN PETRoLEUM

AN INDUSTRY THAT IS or THE VERGE OF BANK.
EUPTCY AND SEEKING FOREIGN HELP.
Last May the British Consul at BatOum, ID. l..
Peacock, made report to his Government the cond-
ton OF the petroleum industry in Russia II kept
confidential for long time. bat the Information
valuable that the summary prepared by Watson Il
Gibson in tho form of circular letter will be welcome
TO tho general public which Is interested In crude oil
speculation. Consul Peacock says:
1t mote that notwithstanding tho wonderful
o the monopoy In IN and that 81 & S6ry avon
1877 and IN The presence OF abundant natural rich The pro
business The last few years been tailoring under
ccpuona pecunaIy difficulties. The construction o. The
Tans' icasian Railway had scarcely been commenced
classes and professions. were rushing To tie bakd
petroleum region to purchase ~ lease @nes :.
Sa' eHr bcSyed That o2gns could be made IN nc
American petroleum. trade from European markets
been done Win regard to Ru,s1 akSl, tae Sonsdncs
trade IN Europe formed, as were the leading spirit
ha1ci ~ tna The peirel riches OF The Arsieoa
pna Were so much greater than those Of America and
were in fact great en2ufh to enable The %e2%gers ana
eating and heang mateTa These sangu9e eARSeIa9n
nsT R2 so GGS a e psnce rae ard Rf the Of a
cessuy competing with America had scarcely been asen
attention was paid aid to the fact that Their competitors on the
Tade IN Europe IA Tri@e OF ons ss6iea aud T cP or
sa9zed GcnneeGn and Segs les, %e or r e1sf4 win imam
The circular continues as follows:
The failure Of the industry to meet the expectations Of
Russian Government and approved by them FOR holding
nua CONFERENCES OF all producers ieAners shippers ani
there been three of these conferences whose object las
petroleum Industry The Trans Railway connects
Baku on the Caspian with Baioum the chief pot Oh me
Black sea. but It's grade Is steep and Is carrying capacity
insufficient The result OF the Fs petroleum conference Of
al ears Tor this railway the improvement Of shipping
facilities az Baorm rebate on TN ATE used N NE to Q,
compulsory norm OF kerosene with regard to the flashing
Of nprovemenis have been applied drilling and refining
ness the checking and controlling OF DESTRUCTIVE and waste
rates establishment OF hospital and school FOR abores ~ no
works. etc
The conference held in 1885 WAS a failure. After re-
citing the measures recommended at the third confer
ence the circular says:
They already preparing exhaustion Of the present
borngs petroleum terms securing special
ons s Of 6e fact that he cd icrtors Of akhaas
ana La1umcR are soS%as e'aInI sss Of oAH e
luton passed OF tho MANIFOLD measures calculated 10
two particuarly the contemplated extension Of credit and
tle increase OF carrying capacity q me lTansC agcasian
!ls Consul thinks ha ms II aiy hol ana ae sAys
in the principal European market, supplied with Baku ke
al loss II is evident Therefore that under tie r,u.
stances actual need Increase the OF
pIeclsted, leaving no margin FOR profits"
ti, arl F,y ~, mon, a. NJ te, ~ o, , .s
scarcely observed Tor time that Tie majority 4
drcrs antrcfncrs we're fatally drifting toward crisis. hat
II Is now admitted that they are on the brink II
The Consul says that the only RELIEF
come from a pipeline from aku 10 baoun, tun.
melting the pass al al events he says te
Ctucls an pipeline oal ONLY BE- question Of Tine 9i b..oi9
long the growing depression OF the Baku petroleum gu
impemuyey demand tie realization OF the scheme
IL predicts that present owners would be glad 20 sell OIi
and this would suggest American that the at Oh
rust might like t. their hand it, lie The d.
ferent works and establishments repeScutug CnoIiour
capital but being actually drag upon the ONurrs q -,ems
but probable eventually pass into better ahGs.
The property works OF OF The largest firms Caspian
and Black Sea Petroleum C,mpany, recently sold %
Rothschd Of Paris and there other Bdku arms
who would be only too glad 10 sell out"
In conclusion Watson & Gibson say:
In summing the entire report which is authority va
may that the Industry though AT present umprUnt4J
has possibilities OF development that render il constant
American oil In the European markets. and tiAt
aside from occasional speculative bull movements VIII beI
constant bear factor on American prices Russian
OIL and American OIL both seek market IN Europe under
ownership II the standard she ud by chance control
Of the Russian industry they would IN that event De masters
Of the petroleum mark OF the world. Unt then the &c
which American oil be laid down IN Europe must Dc IN
Influenced BY Russian competition. At present OF
course producers In bad shape hnan tally,
owing low prices which American on has recently
sold Europe and the East and would appear That
dealt such blow that they
In The