The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-04-05
OIL STATEMENT.
PC. Boyle, Of the Oil City, Pa,
Derrick
Makes Reply and Reviews the
Situation
FROM HIS VIEW POINT.
Prices on Crude Oil, He Says,
Are Governed By
Demand Abroad, as Reflected by
Prices for Exports.
FROM HIS VIEW POINT.

LFrom Topeka Capital-AdFertisemen
In its issue of March 31st the Topeka
Daily Capital devotes considerable edi-
torial space to a review of Mr. P. c.
Boyle's recent statement concerning the
petroleum situation in Kansas. After
referring at some length to the increase
in production and decline in prices. and
endeavoring to prove that the equa-
ton OF demand and supply is determin-
ed in all cases by the buyer of OIL the
review goes on to say;
Mr.. Boyle omits two material con-
siderations. He has much to say about
the increase in production and the fall
in price OF crude. He nowhere refers
to the price OF refined. nor to the COW
ardly and treacherous conduct of the
railroads in boosting the freight rate
100 per cent and more at the very
time the price of crude Oil was hitting
the tOboggan- Owing to the law Of
demand and supply the price OF kan
sas crude kept going down, down,
down for q. full year and more hitting
a little lower price every month The
decline began fifteen months ago and
continued steadily month by month.
Never a month passed but at its close
crude oil was cheaper than at its be
ginning during this fifteen months. But
If the law Of supply and demand
necessttated this fearful slump in
crude, by what hocus pocus of logic
did 1t happen that the same law Of de-
mand and supply permitted the price
OF the refined product to be main
tanned 2''
Let the Kansas public and the To-
pelHa Capital understand the matter
clearly. The price of crude oil is
governed by demand abroad as re-
Elected by the price of refined oil for
export, which in its turn is governed
by the foreign market, which again is
governed by conditions growing out of
the supply at home. The fact that
nearly one-half-46 per cent, in crude
equivalent-of American petroleum is
marketed in Europe and Asia. shows
the importance of this factor in deter
mining values. Aided by German
sympathy and laws and continental
bankers Russian competition is ex-
ceedingly strenuous, working inces-
sanity to cut into the American trade
which the Standard Oil company is
able to hold only by unceasine vigil
lance and furnishing superior grades
at the price of the inferior products of
Baku, Galicia and Sumatra. Every eff
AorJ 70 divide the Standard trade
abroad and decry it at home strength
ems the EuroDean-Asiatic combination
ar the expense Of the American pro-
queer. Bearing in mind the influence
or conditions across the seas, the Cant
tais query can be answered readily
lis tic AdAAABd TO take care of
their side Of the question, the append
ed sable will tell whether the law of
supply and demand permitted the
price OF the refined product to be
maintained The first column eyt,rae
the price in barrels, from which de-
Quoting the cost of the package ner
gailon-2.90 gives US the price in
ouIk the usual method of shipment
Formerly it was the custom to use
1Iactlons OF one-eighth in quotations,
which are now expressed in deciuaIs
OF one-hundredths-1 equaIling a.
point Hence a rise or droD of '9ten
points means an advance or decline
on one-tenth cent on gallon of ex-