The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1895-04-20
THE WORLD SUPPLY
Standard Oil Trust and Russian
Monopoly to Combine.
I'm Agreement Said to Have been
Rcnchcd Two wec,es Ago 1t
Accounts for the Present
Rise in Prices.

70 believe that the unprecedented rise
n the price of oil during the past week
S due to the consolidation of interests
between the Standard Oil company and
The Russian producers to control the
markets of the world. The dea is saiG
. have beer practically completed two
weeks e
Negotiations have long peer in pro.
sress, out the Standard could not carry
out its part of the original contract
which called for the annihilation of all
competing interests which would be
liable to prove a disturbing factor in
Russia's chosen half OF the world.
The Standard squandered millions Oh
money in order to bring about the de.
sired result. 1t put oil on the Euro.
pean market Cor less than the cost OF
production, bSt the independents" did
not give in. They formed a satisfactory
alliance with German refiners, and
nave been able to hold their own ever
since, although many predict that the
Standards latest coup will sooner or
later wipe them out of existence.
The Russians We're angry, or affected
TO be. at the Standards inability TO
crush competitors in this country and
The war of prices between the two great
powers was ~reopened. The Russians
undertook to furnish the markets OF
Great Britain and the western coun-
tries of Europe, which the Standard re-
garded as its own chosen field, and in
order to do this the Russians had to buy
the better grades of oils from the Stan.
dard's competitors in America. The
Standard, on the other hand. put mil.
ions of cases into the far east and found
no difficulty in disposing of all it could
ship, since it furnished a superior grade
Of oil.
But negotiations We're quietly re-
newed and the world was finally d.
vided upon the old basis, Russia waiv-
ing the demand that competitors in
America should be disposed of. The
Standard, however, is understood to
have given assurance that there would
not long be any trouble on thai score,
for the developments of the past week
show that it will leave no stone I'M
turned which will give it the absolute
supremacy of this part of the world.
A lot of independent Pennsylvania
interests, headed by Senator Lewis
Emory, are banded together into what
is known as the Producers Oil COM
pany, limited, to fight the STANDARD.
They formed a league with certain in
dependent reipers of Oil City AID
Titusville, whereby they agreed to re-
main independent of the Standard, re-
sardless of any pressure that might be
brought to bear.
In connection with certain New York
men VINO had formed the Columbia Oil
company, an exporting concern, they
organized the United States Pipe Line
in order to build to tide water
and place themselves on a par with the
Standard as far as production and
transportation We're concerned.
The enterprise, however, proved to be
a costly one. and many obstacles were
encountered. AT length, a few months
ago, the United States Pipe Line COM
pany got fairly on it's feet and made
heavy contracts TO deliver oil abroad.
But it is now a question whether the
projectors have not slipped thsir necks
into a moose. II is reported in oil cir
Giles that the Columbia OIL company con-
tracted to furnish several of the Ger
man retiners with a stipulated amount
of crude oil per mont not to exceed a
certain price. When this contract was
made the crude oil was under 81 per
barrel.
But suppose the price of oil should go
up 100 per cent, would the Columbia Oil
company be able to carry out its agree
ment, assuming, for the moment, tina it
agreed to delive at a rate not much
above last years price?
1t It's a common thing in the oil trade
to make contracts for the delivery of a
specified amoun for several months
ahead. The Standard does this, n it
is supposed that the Columbia Oil com.
pany does. Now, on April | the visible
supply of petroleum in Pennsylvania
was the smallest for many years, there
being less than 100000 barrels. The
Standard has been selling both crude
and refined oil for a year at ruinous
prices, and as this led to its use for
many miscellaneous purposes, the big
stock that had formerly been carried
was nearly exhausted.
In view of recent vents 1t would seem
that the Standard let this occur with a
well defined purpose. Be that as 1t may
1t has quietly picked up considerable
stock of the United States Pipe Line
company, and it is presumably in close
touch with the company $ business, al
though it has failed thus far to obtain
a controlling interest.
Two weeks ago an understanding
was reached with the Russian com
panies whereby the latter were to with
draw from western Europe and leave
the Standard to put up prices 10 any
figure it saw fit and thus recoup itself
for the losses sustained during the re-
cen war of prices between the two
great powers. This settlement founI a
con r.nit W of ,i1 ,,t, TN. 1.ba,. ,.1 = $500
as in this country. Nearly all the oil
on hand was in the tanks of the Stand.
ards agents.
AS the Independent dealers looked
around and saw the price leap Upward
they found no II to turn to except the
Standards agents. for the Russians
had quietly withdrawn. During the
past week they cabled to the ~independ-
eGlt shipping firms on this side and the
latter applied to the Standard. They
kept raising their bids, but the Stand
ard would evade them by informing
them that just at present they had all
they could do to supply their regular
trade.
The price of oil naturally began to
soar and i'm five days of last week an
advance of so cents a barrel was scored.
On Saturday field oil sold for 81 a bar
rel, the highest price in more than TWEEN
ty years.
BY the terms of agreement between
the Standard and Russian companies
the former is to control the market in
Great Britain, France, Spain, Portugal,
eastern Italy and Germany, and a por-
ton of the Mediterranean territory.
The Russians will supply Asia and
other eastern countries.
Supreme Council of tho Royal League
Chicago, April 16.-The annual session
Of the supreme council of the Royal
league opened this morning at the ma
tional headquarters in the Masonic
Temple. The delegates present repre-
scented the STATES of Wisconsin, Indiana,
Kansas. Michigan Ohio. Missouri, Ne
braska and Illinois. Satisfactory re-
ports were presented by the various Of
flcers, that of Supreme Scribe C. A.
Warren, showing that the organization