The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-10-23
OIL MEN
TO CONFER
Agent Watson is
Called to San
Francisco.
NO AGREEMENTS
ARE YET REACHED
Increased Demand for Fuel Oils
Causes Shortage in Supply
of Tank Steamers.

w of the supplying of fuel oils to
the plantations on this island
win not be settled for some time. Or
ders received by Mr.. j. L. Watson. the
agent of the Standard Oil Company.
who has been here for the past month
in negotiation with local plantation
men, summon him to San Francisco for
consultation with the head office, and
he leaves for that city today. His bust
ness may take him to New York where
are the headquarters of the Standard
Oil Company.
There has been a tendency on the
part of the plantations to want conces-
sions in the matter of contracts, which
the Standard will not grant. The gen
eral feeling of the local consumers of
fuel is that there should be more liberal
concessions granted them, while the oil
men insist that there is not enough in
the business to warrant any further in
ducements for the Introduction of the
fuel. The length of term of the con-
tracts is put at two years, and the price
about $1.45 a barrel, which is close to a
$500 per ton basis for coal.
During his stay Mr.. Watson has
visited the various sites for storage
stations, and has decided that there are
two points where the oil could be kept
safely and economically. One of these
is point about one and a half miles
from the city, down the railroad, and
n{b &c nj Harhpr The
plan, should the Standard decide to
come into the field, for the supply of
fuel. would be to erect such number
of tanks as would give to the users of
the oil supply which would keep them
from danger of shortage for at least
half year.
The agents Of the various plantations
who have been in consultation with
the oil man have about decided upon
a basis for agreement, which will be
carried to San Francisco by Mr.. Wat
son, but there will be no determination
until the officials of the company have
considered it. The probability is that
Mr.. Watson will have to go on to New
York for a conference with the people
at the principal office, as there is some
danger that it will be impossible to
secure d supply of tank steamers for
this trade for some time. There is now
a great demand for such tonnage owing
| to the increased use of fuel oils in Eu-
rope and the great amount of the sup
lply from Texas which must find a mar
| ket. The fact that the negotiations
| have reached such a stage as to make
| it even probable that Mr.. Watson will
a
negotiations have reached such a stage.
that the differences are 50 small that
they may disappear upon the personal
report of Mr.. Watson, to the head office
at New York.
! Reports from the East are that the
boom in exports of fuel petroleum has
caused an unprecedented demand for
bulk-ofl carriers for the European
trade The English shipyards are busy
| filing contracts for vessels of this type,
several of which have been ordered for
| the Texan fuel oil trade These are to
run direct from Sabine Pass to London
and other large manufacturing centers,
| where fuel oil is always in demand.
| The present type of bulk oil carriers
has an average carrying capacity Of
about lips, 600 gallons. The new yes
sells will vary over 100000 gallons
Some are for the use of the Standard
Oil Company and others for the inde-
pendent oil producers. The use of coal
will be dispensed with and oil used in
stead
The oil exports from Philadelphia dur
ing one week amounted to over 10,O00.O0O
gallons, and for the year to October
list are over $50 COO 600 gallons.