The herald., 1895-11-05
Not in a Very Settled Condition
at Present
WHY IS THE STANDARD HERE
That Is the Query OF Interested Pro.
ducers
Some Of Them Believe They Have a Solu.
tion - What About the Southern
Pacific ?-Ouien Sabep

At present the bill industry is passing
Though stage of development not un'
like the awkward period in youth, when
a boy really amounts to very little, but is
just at that point where he may develop
into handsome, energetic man or a shift
less, unsightly individual. Like the boy
referred to, it keeps on growing, though
what it will amount to when fully devel-
oped is yet uncertain. The trouble is not
of recent. birth. 1t has existed for some
time. As far back as the early part OF
the present year there began to be some
difficulty in the matter of adjusting the
supply Ut oil to the demand. 1t soon be-
came apparent that local consumption
was not equal to the increasing supply,
the conclusion being roughly forced upon
the producer by a heavy reduction OF
prices. Finally the point was reached
where organization was thought of and
varied attempts at small unions were
made and at length an exchange was es-
tablished, comprising at first not more
than half the producers OF the field.
Through the efforts of its officers the ex-
change expanded go that it included the
majority of all operators.
1t announced from the start that its
main object would be to secure market
other than the limited local one,and fur
nish transportation by sea, since it mad
been found impossible to obtain rates
from the railroad sufficiently low to per-
nit shipments in that way " ith any
profit.
A great many placed confidence in the
exchange and there is no doubt but an
earnest and able effort was mai by its
officials to improve the conditions then
Gripping the industry. They were not,
however Immediately successful, and in
the meantime the situation grew worse in
the field.
Private omparies took advantage of
these conditions to further their own in
terests, never neglecting an opportunity
to refer to the ineifectui efforts of the ex-
change, and assuring oil men that no re-
lief could come from that direction.
Meanwhile oil went down, and these par
ties speculated on the product. The ex.
change had already, through its commit
tees proven the existence of a market in
the north, and indeed aided materially
in widening that market. Shipments to
San Francisco were made by private par
ties at a considerable profit, since the oil
sent was purchased at an exceedingly low
figure. Such has been the conditiun of
AFFAIRS in the oil industry up to a short
time ago.
!, The com muDity was one day startled
, by the announcement that the Standard
| Oil company would soon enter the field.
| Many welcomed the news, hoping,
| through tie means of that corporation.
| to secure an outlet for their overpurdene1
tanks. Some doubted the truth of the
| statement, but at length the Standard,
| through its agent published its readiness
to buy oil. Only u limited quantity
would be received, and that at so cents
| per barrel, delivered at their tanks.
| Some sales h ave been reported. the ex-
change itself having been quoted as one
| of the parties selling. Others have been
| unable to dispose of their surplus to the
had not the place to store it. This is no
| material relief; practically no relief has
come from that source.
! The sincerity of the trust is questioned
by many Of the Oldest oil men in the
| field. they hold that the Standard is
style, which is contrary to Its general
policy, simply for the purpose OF defeat
| ing the attempt of the exchange to secure
| transportation by water. There is an
agreement, they believe, between the
Standard company and the Southern Pa
| citic.
| Still another view tak.n by some is
| that the Standard has decided to gain
control of the Los Angeles oil industry
| and has begun, as in numerous other III
stances, ny first den oralzing the indus
try by lowering prices of the product un-
! ii: operators can no longer afford to ex-
plot the field, when they will seize upon
1t them selves and reap the benefits that
must necessarily come from region rich
in valuable oil deposits. Be that as it
may, the standard is in the field, and for
purpose. Whether so great concern
would allow its name to be used that
some other corporation might gain the
results of the effects produced is quss-
| tionahle. Whether the Southern Pacific
is in league with the eastern oil trust is
| another question, the answer to which
would differ only in the proportionate
amount of spoils each would take in the
anal faKe-off.