Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1905-08-18
STANDARD OIL
INCALIFORNIA
BIG COMPANY SEEMS TO HAVE
STARTED ON A NEW
TACK.

The Los Angeles Times says that
the latest news from Bakersfield is
that the Standard has again changed
its course and is going off on an ap.
parently new tack. Probably there
is some method in this seeming mad
although it is safe to say that it con-
firms in strong measure the belief that
the Standard intends to ostensibly
withdraw from Kansas and that the
great pipe line is total failure south
of Mendoza, where the light oil from
Coalinga is brought in over the branch
from the Fresno field.
According to reports from Bakers
field, 200 employees are to be laid off,
and on June the number of pumping
stations will be reduced to four. And
this, too, in the face of the fact that
large sum has just been expended
on a number of new stations which
were supposed to be for the purpose of
enabling the line to carry the heavy
Kern crude to Point Richmond. The
question is now asked: HAS the
Standard become convinced that this
can not profitably be done even with
increased power?"
At first this might be thought like
ly, but the dispatches from Bakers
field say that Colinga light oil is still
being pumped to Kern for mixing with
the heavy crude. Has the Standard
found that by mixing and tightening
the oil can be carried with even less
power than was at first contemplate
ed? Few, if any, persons at all con-
versant with conditions will give this
theory minutes consideration.
There is another theory advanced
by some. which is that the conditions
at Kern have proved themselves too
much for even Mr.. Rockefeller's ex-
perts and that they are simply eX-
perimenting first one way and then
another in the hope of finally hitting
upon solution of the problem. 9th
ers venture the thought that perhaps
all is not harmony in the main offices
on this coast and that this may &C
count for the several reversals of pol
icy seen on the part of the great mo
nopoly at Kern.
A Look Back.
A brief history of the twistings
followed by the Standard during the
last three years may be of interest
When the Kern fields were frs
brought to the front five years age
the Standard was soon on the ground
It established agencies at Kern rive
and McKittrick. and was seemingl!
bent on obtaining here the absolute
control it has acquired long since II
| the east. Producers were harrasset
in the same old way; railroads were
never able to furnish cars when any
body except the Standard wanted
them, although the sidings along thu
road were often fairly blocked will
them, and so the marketing wa'
gradually becoming concentrated il
Mr.. Rockefeller's hands.
Then there came a new factor II
the unexpected to cinch the Stand
ards control in the form Of the pro
| ducers' combine known as the Asso
ciated Oil company. 1t is not the i'll
tention to touch on the history of thi'
company's rise to power, and it i.
merely mentioned here.
Two years ago the great pipe lint
was finished. 1t was popularity eX
pected to cinch the Standards con
troll, it has had apparently very diff
ferent effect. 1t was quickly demon
strated that Kern oil could not b.
pumped at least without more powe
and not even then, if reports be true
and the line was turned over to tn,
Coalinga product. but the purchase o
oil and the rush of work on reservoir
continued There was apparently NJ
change. no vacillating in policy so far
Standard VaeiIIates.
Last August. however, there wa
change. The price of oil was Gu
to II % cents from Is. In a few
days it was again raised to 1871
Then purchases suddenly stopped en-
tirely. Then just as suddenly Their
came another reversal of policy am
purchase was resumed at Is cents
In few weeks there was anothe
and equally sudden reversal: purchas
es again stopped entirely and hav
never been resumed.
Some explained this by the fac
that the independents were then OF
ganizing apparently with Standar
encouragement. l have 1t on good al