The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-10
STANDARD OILS RIVALS
THEY HAVE BEEN CUTTING INTO
ExPORT-TRADE HEAVILY.
Profits of 100000 900 Divided and
suspicious Activity of shares Hint
at Trust Unloading.
New York Journal.

New York Journal.
The Standard Oil C~ompany's practical
monopoly of the worlds oil trade is Sc
riously threatened by recent events in Eu-
rope, Russia in Asia and the East Indies.
The most profitable branch of its business
is in the export trade. At the present tate
of increasing petroleum output in foreign
fields, where labor is cheaper and hauling
distance to points of consumption shorter,
the exports of American oil, according to
the opinion of experts, must be greatly cur
tailed.
The reduction to any considerable extent
of the exports of oil from this country
should naturally cheaper the product to To-
cal consumers. Ordinarily such would be
the result. The Standard Oil Company.
however, has such a tight grip on the oil
business of the country that it is not be-
lieved that it would ever lower the prices
for home consumption. The octopus would
merely reduce the production. The effect
of this would be to throw a number of
workmenNout of Employment. The Stand
ard Oil Company might even increase the
price of oil for local consumption in order
TO compensate by greater profit at home
the loss resulting to the export trade.
The seriousness of such a blow to the
ohNo III IIuSI Gail De dppI 6Cldlcu
when it is known that the profit on the
export trade of the trust during 1896 was
about $45, 100000 During the same period
the dividends paid on the stock amounted
to 40 per cent, or about $40. 900. 900, as the
capital stock is slightly under. 800, 900, 900.
The great profit on export trade was made
on shipments of $50, 1000 900 gallons of re-
lined oil, which is equal to 800, 001, 600 gall
IONS OF crude petroleum. A comparative
Nv small amOlnf 0f This oil wont 70 Sp11th
and Central America and Mexico. Of the
rest Europe took 500, S50,000 gallons of re-
Japan and Australia. To the eastern coun-
tries alone the exports of refined oil
amounted to 127,S DOC gallons. In these
eastern countries the consumption of oil
Is increasing at a rapid rate. Districts
which had been closed to foreign trade
and with even semi-civilized
more in vogue.
This choice territory which the Standard
being gradually taken away from it. The
most important discoveries of oil have been
made there during the past few months.
The latest find was in Borneo. Here the
deposits of petroleum are said to be almost
l~neXhaustible. Dutch and English syndi-
Gates are now working there, and several
"gushers' have been opened up. In Java
and Sumatra large deposits have turned out
over 2,0UO,O00 barrels of oil during the past
year, with the production increasing rap
idly.
FIGHTING THE STANDARD.
A Dutch syndicate has established REIN
ing plants at Palembang, on the Island of
Sumatra, and another large refinery near
Batavia, on the Island of Java. Experts
who have examined these fields declare that
all of the eastern trade can be supplied
from there, cutting off the American oil.
The driving of wells in Borneo is lust
beginning to open up the rich petroleum
fields which have been found there. The
production is estimated at 80, 000, 900 gal
Ions of crude oil for the present year. In
the process of refining the volume of il
lumnatlTg oil is reduced by half. AT the
present rate Of production SumaIra, Borneo
ana Java will turn out 295, 200, 900 gallons
OF crude oil. This Oil, when refined, will
yield about 145, 900, 900 gallons of iilumi-
mating oil. This exceeds by 17.107 900 gal
Ions the exports of the Standard Oil Com
pany to the east. The capacity of the
retineries being limited at present. all of
the oil produced cannot be handled this
year. o/
This eastern situation has rather dis
concerted the trust, and from reliable
sources D it is learned that an offer of
standard Oil Company for a controlling in
tereSt IN a syndicate recently formed in
London and Amsterdam. which has pur-
in Borneo, Java and Sumatra. The offer
was not accepted.
In Europe, where the consumption has
nearly reached a maximum, the oil trade
IS pelng Wrested from the Standard Oil
company. In Germany particularly the
feeling against the American monopoly is
very strong. Emperor William himself has
at times taken a firm stand against the oc-
topus; Any opportunity to cripple it is
presented itself by the large discoveries of
petroleum in Galicia, a province of Austria
Hungary, which borders on Prussia-SiIe-
STA. The outlet for this oil was so limited
that on jan. !, 1897, the producers had on
hand unsold 100000 barrels. German cap
italiStS have become interested in the fields
and a syndicate has been organized to pipe
the petroleum to points in the interior of
Germany, where refineries are to be erected.
While Galicia is fast coming to the front
as an oil producing province, Silesia in
Prussia is also increasing. Petroleum was
first found here in 1880, when 459, $50 barrels
were produced. This has been increased
until $500, coo barrels were produced in 1886.
Practically all Of this oil is used in Ger
many. In addition to this increase for
German consumptio the sales of Russian
oil in Germany increased from 812, 310 gall
Ions in 1894 to 1927, 730 barrels in 1897.
The Standard Oil Company is practically
owned by ten families, estates and indi-
viduals. There are a few struggling lots
held outside, but of small proportions.
Things are changing slightly now, how
ever. Men interested in the oil trade
prophesy that within a short time the oil
exported by the STANDARD Company will be
reduced by at least half. This, they assert,
is known by the inner. mystic circle, and
may be responsible for the recent stock
activity and for the effort of some unknown
insider to unload his stock.
Table showing estimates prepared from
latest reliable of the production
of crude petroleum for 1897 in the newly
developed fields outside of Russia, which
threaten to curtail the exports of the stand
ard Oil ompan follows:
1.1Iz.-