The St. Louis Republic., 1903-06-07
GUFFEY AND STANDARD
BEGIN OIL BATTLE
Former Forces Down Beaumont
Crude After Latter Has Stocked
Up Heavily.
STANDARD TAKES BULL END.
Offers More Than Market Price in
Effort to Restore Values
Guffey Reported to Be d
Heavy Seller.
STANDARD TAKES BULL END.
REPUBLIC SPECIAL.

REPUBLIC SPECIAL
Beaumont. Tex, June 6-Are the Stand
ard and the Guffey Company beginning their
first open battle for control of the Southern
oil fields?
Recent bearish movements, which are
credited to the Guffey people, and the un-
qualified bullish attitude of the Standard
as represented by the big Texas Company,
lead students of the situation here to the
conclusion that these giants IN the petrol
cum world have begun their struggle
Oil has been forced down from Sis,S cents
per barrel to 6sI6S cents, with the Guffey
Company, heretofore heavy buyer. one OF
the reported heavy sellers.
In the face of this decline, the Texas
Company, which is undoubtedly an ely OF
the Standard Oil Company, oilers 70 cents
barrel for all the OIL that can be deliv-
cred TO il.
The fact. that the Standards largest re-
finery-in fact, the largest refinery in the
world-locally known rs tle Burt refinery,
while Is considered by some ID Ice the rea-
son for the Guffey Company's move in the
matter. Brokers here declare the yecience
of the Guffey position 10 Ice:
MOVE AGAINST STANDARD.
The Standard has bought all the oil that
1t can take care g until a few weeks of
operation of its pant shall have reduced
its supply and given it back some &C the
storage room that it now has occupied.
Much of this oil-in fact, = large tart of
that which has been bought in the open
market TO supplement the supply furnished
by wells owned and controlled by the CON-
pany-has been bought n: the recent high
prices that have prevailed. This briggs the
average price OF raw material nrw held by
the standards refinery. Up u consider
able figure.
On the other hand. the Guffey people.
while they have been heavy buyers at all
times. have also been heavy consumers
and the fact that their refneries have been
IN operation, and their foreign markets have
been open, has kept their stock of oil NOV
ing. Ihey have both got the market price
for refined products, and saved interest on
the money invested in the raw material
REDUCING COMPETITORS ASSETS.
The Standard people. by reason of the
100000 barrels for the exclusive use OF
their Burt refinery, have not only not real
lied high prices for a manufactured prod-
uct, but have lost the interest for periods
money that they have paid out for these
2.eoo, eco barrels of crude oil.
Nobody believes, of course that the total
loss OF that amount of oil. il addition to
the interest on the money Invested. would
cause TIE Standard officials to seek relief
wink OF sleep. But there is strong beiief
that the Ciuffey people have 2 motive in
trying 10 force the market doSn after their
al the high prices. 1t would be first blood
for the Guffey Company: and l-st blood IA
something IL nght.
Up 10 the present time the GafTey Com
p2ny has been large and consistent buyer
OF cruGe. One of the latest big deals that
it made was the purchase OF the entire
product of the Higgins gusher in the new
Gladys City territory. This gusher a, last
reliable accounts, was producing close 20
1000 barrels per day, all of which the
Guffey people were gladly taking at rs
cents per barrel.
BOTH OWN MANY WELLS.
Both the Standard and the Guffey COM
panies own many wells in the Spindletop
and the Sour Lake territories The Guffey
Company operates under its own name; the
Standard operates. OF course. through al