Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-12-10
THE HOPE OF THE PRODUCERS.

rennerleS as a cure 1Or Jne present Is 10 Uc
deprecated; even if practicable. any help from it
would be too remote, and as to shipping oil to
Europe by way of Mississippi river, the scheme
might be worthy of smile If the subject itself
were less painful.
This is simply relying, as a final argu-
ment upon an assertion which ignores theen-
tire history of the process by which the pur-
chasing of the petroleum production, which
removes the stocks from the market, has
been concentrated in the hands of single
buyer. In Mondays issue we argued the
futility of a combination such as proposed
by this contributor, which would either
leave the combination subject to the inter-
nal sway of Standard representations, or else
turn over botn the market and the new de-
velopments to the producing interests under
Standard control. 1t is pertinent to give
further notice to this rather arbitrary dis
missal of all plans to introduce into the
petroleum trade the influence by the aboll-
tion OF which the Standard has gained its
entire wealth and power.
A complete answer to this assertion is
found in the fact that wherever any approx
imation to competition in the transportation
or refining of petroleum has been made there
has always been greater or less measure of
improvement In the prosperity of the pro-
ducers. A corollary to this is in the fact
that the power of the Standard has always
been rooted in its ability to maintain
barrier between the producer and the con-
sumptive markets; and its policy has
always been to keep that barrier impreg-
nable. 1t was that policy which sought to
place the entire marketing of petroleum in
the hands of the South Improvement
monopoly, and the steady adherence to the
same policy reached its ultimate victory in
the absorption of the last independent pipe
line and refinery.
Whenever that barrier has been broken
down from the days of the Columbia Con-
duit down to those of the Western and
Atlantic pipe line, the producers have felt
the benefit. Whenever competing pipe
lines have reached the producing districts,
there premiums have appeared; when the
pipe lines have been gobbled up the pre-
miums have disappeared. Whenever inde-
pendent reineries have attained anything
like decent equality in transportation they
have prospered and the producers with
whom they had an independent connection
have shared the prosperity. When the Stand
ard has succeeded in preventing its rivals
from getting transportation the Independent
refneries have been squeezed out and the
grip of the Standard has closed with resist
less force on the crude market. This is the
lesson which shines out of the entire his
tory of the petroleum trade from 1872 to
1890.
Now, when the entire strength of the
Standard lies in the fact that consumers
cannot buy or producers sell, except in ac-
cordance with Its dictates, because it is the
sole buyer from producers and the sole seller
to consumers. what is the obvious and busi-
uess-lIke measure of relief? Plainly for the
producers to open up all the possible av-
enues by which they can reach the con-
sumers. The river route is one such avenue,
which has been proved by partial tests in
the past. The independent refners of Pitts
burg maintained their prosperity by its
means fifteen years ago, until the competing
pipe line by which they got their crude was
cut off; and George Rice has found it last
resort in his effort to get transportation from
Marietta to the markets of the Southwest.
But that is not the only way of reaching the
same end. Every independent pipe line
that the producers put in operation opens
the way toward competition. Every COM
peting refinery that is started by outside cap
ital, puts competing buyer of crude in the
field. Every refinery that the producers
start on their own account, takes their prod
uct on the way to the consumer. All these
means, systematically developed, will restore
to the crude market the competition in buy
ing, for the lack of which it is suffering.
OF course it must be recognized that this
is work of time, and the relief canno. be
expected until the competing influences are
re-established. 1t has taken the Standard
16 years to build up its absolute control of
the market, and if the producers cannot en-
dure the struggle for year or two, to free
themselves from that control, nothing is left
for them but to turn over their properties to
the Standard at its own figures. Necessarily
some time and money must be spent before
competing refneries and pipe lines can
bring relief But it is certain that the re-
lief will come some centuries before COM
binatiou of producers could force the
Standard to accept its terms with the latter
in possession of thirty per cent of the pro.
duction and all the stocks. 1t is even prob.
able that the relief could be realized sooner
than the present squeezing process would
otherwise reach its end in giving the Stand
ard the absolute possession of all the pro-
ducing territory that is worth mentioning.
One point more is presented by the obvi
Gus reflection that the Standard has not beer
buying competing pipe lines and refneue!
for the past fifteen years, simply for amuse
ment. 1t has done so because its control o
the market lay in wiping out all compe
tition. There is no other way for the pro
ducers to restore their Industry to a norma
condition than to call into existence ono,
more the one influence which the STANDARD
breads, and which it is its constant effort II
suppress.
ACONvINCING EXAMPLE.
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