The Savannah morning news., 1902-07-03
THE SOUTH'S PINES
STANDARD OIL WILL NEVER CON-
TROL THE FORESTS.
SAYS Mr.. ]. P. WILLIAMS.
NAVAL STORES OPERATORS WHO
SELL TO OIL COMPANY

lower the Market and Not Only
Cause Losses to the Factors but to
ThemseIves-The Operations of the
Standard People in the Producing
TerritOry-TaIk OF the New Move
in the Naval stores Trade.
The operations of the Standard Oil
Company with naval stores export
ers in the Savannah market, reported
in the Morning News yesterday. caused
a good deal of discussion among the
trade as to the probable trend of the
company's business in this direction.
What the ultimate result will be is
matter that concerns factors and OPP
orators alike.
Mr. j. P. Williams, president of the
]. P. Williams Company, said that he
does not believe the Standard Oil Com
pany or any other corporation, no mat
ter how strongly backed, will ever get
control of the South's pine forests.
He believes there are obstacles too
difficult to surmount, and that in the
absence of complete control an in
dividual factor would not exert an
important influence.
The man whose eyes should be
opened to the operations of the Stan
dard Oil Company is the operator in
the country, who sells his product from
the STILL said Mr.. Williams. Dis
posing of supplies in this way is not
only a loss to factors at the port, but
it is at a greater loss to the operator
for the reason that every barrel sold
to that extent lowers the Savannah
market, which is the basis on which
the company buys. Every barrel sold
in the country decreases the demand
at the port, and takes from the COM
petitive market bidding that would re-
suit in materially higher prices. 1t is
my belief that when the operators
have their eyes opened to the fact
that they are. damaging themselves
by protecting a large and influential
buyer from entering the competitive
market they will establish relations
with factors at the port and cease in
terror selling.
"The STANDARD Oil Company natural
~ does not desire to buy in this mar
ket," said Mr.. Williams for the reason
tat it can obtain supplies cheaper at
the stills. And if it is forced to pay
higher than the official prices at Sa-
vannah it is not reported here, and
consequently the market is not bene-
fitted"
The point Mr.. Williams makes in
naval stores trading is analogous to
that made by the legitimate cotton
commission firms at New York and
New Orleans, who claim that the cot
ton farmer depresses the price of his
product when he buys through a bucket
shop because the sale is not regarded,
and the market loses the benefit of the
increased demand, which is the only
basis of a rise. The effect of the de-
mand in trading off the exchange Is
entirely lost in the absence of any rec
ord of the business.
The operations of the Standard are
becoming better known to the rank and
file of the country trade. 1t is well
known that it operates a system of
tank cars, which move about from sta
ton to station, are side tracked, and
stuff is bought direct from the stills
and put into them. These cars then go
to the West and elsewhere to supply the
domestic demand, which the Standard
controls in that section. On rivers the
Standard is establishing steamboat
lines in order to collect the turpentine
wherever 1t may be found. Much Is
carried into River Junction. near
cambridge, by boats and there load
ed into tank cars for shipment to
consumers.
AS stated in the Morning News yes
terday the Standard spared some of
its stuff to local exporters. This gave
most of the trade no cause for alarm,
however, as everybody was assured
that st was only a surplus above do
mestic demands it was found could be
sold here at a profit A majority of
the trade share the opinion of Mr.. Will
liafms. however, that control of the
pine forest cannot be acquired, because
the company does not advance money
and further. because the trade will
awake to the fact that selling outside
the official market. and basing prices
to be paid upon that market is I'M
profitable