Evening star., 1898-08-02
OUR OIL IN THE ORIENT
Competition of Cheap Product Of Dutch
Refineries.
Large Tract of Chinese Territory
Open 10 Foreign
Trade.

has made report to the State Department
in regard to hindrances to American oil
trade in China, In which he says that the
recent discovery of petroleum in The very
heart Of China, in the rich and populous
district of Szechuan, is very important
In view of the oil wells in the japanese
Island of Formosa, and of other ell wells
near the German possession of kyao-chau,
in the province of Shantung. he says. our
trade in American kerosene is bound to be
affected, unless prompt efforts are made
to control the output and. If possible. the
trade in the Chinese product.
I'VE have already ne says, "in this
growing district of Canton-wIth more than
SO,000GO of people-two powerful compet-
itors in Russian and Dutch oils. Until
1896 Dutch oil was unknown in China. 1t
comes from Sumatra, and the Royal Dutch
Petroleum Company is vigorously pushing
1t in Hong Kong and Chinese coast ports,
including the seven treaty ports in this
consular district viz, Swatow. Macao,
Hollow, Pakhoi, Canton, Samhui and WI
chow. The inland waters of China were
opened to the trade OF all nations On June
/, 1898, and this extension of markets will
afford greater facilities for increasing our
commerce in China.
Dutch OIL Works.
In 1896 the German agents for the Dutch
Oil purchased site in Hong Kong, built
pier for the use of tank steamers, and con-
structed several large reservoirs to store
oil in bulk, well as warehouses for car
ming and boxing the same. Our Dutch
rivals In kerosene began TO develop their
enterprise with characteristic energy, and
in 1897, after just one year, had such
demand that 1t was necessary 10 run sew
erai tank steamers between Sumatra ard
Hong Kong to supply the constantly in
creasipg market in China for cheap oil.
Previous to the erection of these tanks by
the Royal Dutch Petroleum Company Oil
was imported in cases Of TWO cans each.
In these oil works in Hong Kong there
were canned in 1897 upward of 2,60D000
gallons of oil for the Canton market alone.
Customs returns show 2,025, ,7s0 gallons of
American oil imported into Canton between
January, 1894, and January, 1897. OF Rus
sian oil there were imported during the
same period 2, FOB, 800 gallons.
The Dutch oil is an inferior article, and
much cheaper, of course than that from
America. 1t is well known that large guam
titles of Dutch oil are being palmed off on
the unsuspecting Chinese genuine Amer
lean kerosene. 1t is canned in Hong Kong
in old American tins that are bought
throughout China for that purpose at ten
cents tin and are marked with popular
American trade marks of various kinds
The Chinaman is a practical business man.
and if he can buy Dutch or Russian oil, or,
as is frequently the case, combination of
both these smoky, infiammabie and danger
Gus oils made up in a way that VIII enable
him to sell it in China as American and at
lower price than the genuine article, he
will, of course, jump at the opportunity
At Wuchow (opened to trade in June 1897
British, German and other agencies were
soon established, and besides pushing
piece goods, thread, cheap lamps, matches,
etc, they introduced Russian and Dutch oil
into the innumerable cities, towns and vii
lagos the great West river and its vari-
Gus branches, where our oil had held the
market until last year.
A Great Market.
The whole of the great West river and
all the inland waters of China are now
open to the navigation and the trade of all
nations. American exporting firms can es-
tablish agencies in the great trade centers
of this vast district, which has more than
1000 miles of seacoast, including the large
Island of Hainan, and which extends into
the interior as far as Thibet, distance Of
over 1000 miles This territory is larger
in area and in population than that Of AUS
tria, Germany, France and Spain combined
and probably will be as important to United
States trade.
the demands of this great market and Wig
orous efforts should be made to do SO. We
have active and determined competitors in
the field. For many years our oil producers
supplied Chna's millions. We can now
send our oil hundreds of miles into the in
terror and under the American flag. With
increased competition should come incre ased
effort.
American trade with the far east in recent
years has not in certain lines increas
as rapidly has that of other countries
In no branch of commerce is this more evi-
dent than in oil.
Notwithstanding the great increase In
the demand in China during the past four
years, we have not received our share of
the oil trade.
Consul Bedloe says:
The Dutch product has advantages in
freight and difference in exchange The
points whence American oil is shipped to
the far east are thousands Of miles away
Would it not be advisable to select some
point on the Pacific coast for the export of
oil to China? We could ship oil in tank
steamers across the Pacific to the Chinese
markets quicker and cheaper than is possi-
BILE by sailing ships as at present The OLD
methods were good when we monopoIized
the market; now. however, We must find
better ones.'