Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-09-13
THE STANDARD SIDE
One Of Their Purchasing Agents
Says That the Company Was
Forced TO Cut Premiums.
THE INCREASED PRODUCTION
And the Comparative Values of the Oils
No Longer Warrant
Their Payment.
TIE INCREASED PRODUCTION
ANOTHER 6USHER AT WILDWOOD.
Review Of Operations at Warrington and in 0thel
Parts Of 0ildOm.


the Standard Oil Company, stopped at the
Schlosser last night on his way home to
Titusville from Mt Clemens, Mich, where
he has been for the past few weeks, quietly
resting and recuperating from an aggravated
attack of rheumatism. The DISPATCH
representative availed himself of the oppor-
tuuity to interview Mr.. Seep upon the re-
duction of the premium by the Standard.
"Mr. Seep, can you tell THE DISPATCH
why the Standard Oil Company has re-
duced the premium on Washington and
Butler county oil, and what reason do they
give for the reduction?"
'Yes, will be only too glad to do so
The reduction of premium is by no means
an arbitrary action on the part of our peo-
pie, but the necessity is forced on them by
the commercial situation, which is the out
growth of the enormous increase in the'pro-
duction of high grade or premium oils.
Look at it for moment. When the pre-
miums were fixed in August, 1888, at 20 and
25 cents for lower and middle district and
Washington oil, the production of these
high grades of oil was 2S 500 barrels in
round numbers while at the present time it
is nearly if not quite, 5000 barrels. or an
increase since then of fully 125 per cent.
Bradford production and like quality in
August, 1888, as nearly as 1 can remember,
was about 1900 barrels while now it is
about q, ,000 or an increase only of about 25
per cent. So you can see the increase has
been nearly altogether in the lower field or
premium oil.
HOPING FOR IMPROVEMENT.
"Our people have delayed action about
reducing the premium at very great loss to
them for a long time in the hope that
there might be an improvement in
the situation, which hope has not been
realized. On the contrary, the situa-
tion has been getting worse, so much so that
we now have production of over $4,000
barrels and an increasing stock which is en-
tirely composed of premium oil. 1 dare say
there isn't another concern in the country
that would have stood this loss and paid
this premium for so long time under such
adverse circumstances Why, the differ
enee in values for the water white oil, which
are produced from the lower country, and
Washington crude oils, as compared with
Standard white. is from SO to 75 per cent
less than in 1888 and we have not been justi-
fed for a long time in paying those pre-
miums.
"These are facts, and we have figures to
show for it, which have no doubt our peo-
pie are willing to produce to any respon-
sible party"
Il understand the premium on Tiona ill
has not been reduced. Why was this not
changed?''
Eyes, it's true; Tiona premium remains
the same. The reason is there is a
demand for about all this oil for
lubricating purposes and other fancy
by products. The production of Tiona
oil in 1888 was 5000 barrels per day, and
now it is about 2, 500 barrels, so YOU see there
is a small decrease in this production, while
the others have more than doubled in the
last two years.
TOO MUCH PREMIUM OIL.
81 feel warranted in saying that, notwith-
standing the change in the commercial sit
uation, naphta being less than it was two
years ago, owing to the Ohio naphta enter
ing into competition with ours, that if the
production OF premium oil had not increased
TO such an extent the premium would
not have been reduced"
''IS it true, as has been stated, that the
Standard producing companies had a pointer
on this reduction in premium and sold
largely before the prce was reduced?"
'That Is not so. The Standard producing
companies, as you cali them. are in the
habit Of selling their production once a
week. l know this to be the TACT, as l have
the buying of their oil, and they stand just
where other producers do. 1 am quite
largely interested in the producing business
myself. We have over l. 900 barrels per day
production. have distinct recollection
that this reduction cost me $1,000, but ]
make no kick. We have been like great
many other producers-very busy increasing
the production of premium oil, instead Of
our bank account as we should have done"
some Drilling in Progress.
CoRAoPOLIS-The Augusta Oil Com