Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1895-07-04

CLARK Erwin In Chicago Sentinel)
The people Of this country are just
now regarding with amazement, and a
portion Of them at 1Csrt with indigna-
ton, the methods by which private
corporation, whose stock is owned by
one individual, is leVying tribute upon
the people and compelling payment to
the amount Of fifty million dollars Or
more.
That corporation is the Standard Oil
Company, and the individual owning a
majority Of the stock is the company's
president, John D. Rockefeller.
The associated press dispatches Of the
goth inst, give a concise and extended
history Of the transaction, from which
we give the following extracts:
1.-THE oil territory of this country,
east Of the Mississippi river, so far as
developed, underlies part Of Pennsyl-
vania and West Virginia and sections
Of Ohio and Indiana. The quality Of
the oil In the first named fields Is SUI
perior to that of the Ohio and Indiana
district. The residuum in refining the
latter is capable of only limited uses,
while the bi-products Of Pennsylvania
oil are valuable. Among them long
and costly experimentation has deVel-
oped and perfected aniline dyes, para
fine for candles, and for insulating
telegraph wires, wax for gums, and
other commercial articles. Pennsyl-
vania oil always fetches higher prices
than Lima oil, as the Ohio product Is
called. From It's beginning the Stan
dard has operated most largely in the
Pennsylvania field, chiefly because Of
the greater profits that were to be made
in handling that oil, the bi-products
of which are said to be as valuable as
the oil itself. The Standard has been
the buyer and reiner Of the oil. Though
there are now and have been indie
pendent refners they are small ele-
ments, and the Standard is practically
the market to which producers go to
sell their oil.
"In consideration Of the many
chances against striking oil at the end
Of an expenditure Of perhaps thousands
Of dollars in boring for it, and also be-
cause Of its apparent disbelief in the
soundness of any searching system Of
searching for the fluid, and probably
for other reasons, the Standard has left
to others the business Of drawing oil
from the ground and devoted itself to
controlling the subsequent sale Of 1t. 1t
frequently has purchased wells and
leases in territory that was first deVel-
oped but its main business has been
to refine crude petroleum purchases at
prices fixed by itself. For several years
past these have ruled on an average
too low to induce as much prospecting
as in former times. Excepting the Nc
Donald, Sisterville, and Warrington
fields, and perhaps a few others, new
territories have not been found for sew
eral years. The product of these has
been insufficient to keep pace with the
demand in the ratio the Standard de-
sires. The figures Of the visible supply
for a number of years are instructive
in this particular. Feb. %, 1892, the
reserve Of eastern oil was 16,600,O0O
barrels. A year later at the same date
It was 100000. In 1894 it had fallen
to 100000 barrels and Feb. % last the
stock was down to 100000. The pro-
duction in the eastern district in 1893
was SO,936,OOO barrels. In 1894 1t
amounted to SO,1SS,OOO. The shipments
in the same year were 36,OOO,000 bar
rels; that is, nearly 100000 in excess
Of the output. The difference, as is
seen, was made up by drafts on the
reserve supply. At the close Of 1894,
estimating the Ohio reserve stock at
%, 900 900 barrels and the Pennsylvania
reserve, as shown, at about 100000
barrels, the visible supply in the coun-
try was down to approximately 25,0OO,-
900 barrels, four-ffths Of 1t not adapted
to the most profitable purposes Of the
Standard. Consumption had over
taken and passed production, in one
section at least.
"Close observers Of the company say
the course It marked out to fit the ex-
igency is clear. The Standard, they
say, determined to stimulate produc-
ton. It set about first to secure all the
oil entering into the visible supply,
which It did not own already. Prob
ably the total was not large. Jan. 81