Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-05-25
Petroleum and the Tariff.

One of the stock Democratic argu-
ments during the last campaign was
the assertion that petroleum enjoyed
the advantages of protection. 1t was
conceded that petroleum was upon the
free list, but it was pointed out that
it was provided that il there be i'm
ported into the United States crude
petroleum or the products of crude
petroleum produced by any country
which imposed duty on petroleum or
its products exported from the United
States, there shall in such cases be
levied, paid and collected a duty upon
said crude petroleum of it's products
so imported equal to the duty imposed
By such country" 1t was asserted
that Russia. which was declared to
be the only other country in the world
which produced petroleum in large
quantities. had a duty upon petroleum
and the products of petroleum exported
from this country, and that this acted
practically as tariff duty upon such
products. The argument was made H.
season and out of season that any
duty upon petroleum went to the ben
eft of the rich and powerful Standard
Oil company, and to such an extent
was this argument used that the pro-
vision above alluded to was eliminated
in the Payne bill. The general public
was given to understand by the Demo-
cratic press and speakers upon the
stump that practically all the petro-
leum in this country was produced by
the Standard Oil Company, but the
recent debate in the Senate has
brought out some statements of fact
which have not been controverted and
which seem to put the entire question
il. d decidedly new light. 1t has been
shown in this debate that so far from
producing all the petroleum in this
country the standard Oil Co. actually
produces only 10 per cent. Of it, the rest
being produced by various Independent
companies all over the country. The
Standard Oil Company, while it pro-
ducCs only 10 per cent OF the crude oil
produced in the country, refines 85 per
gent. Of it, In fact the bulk of it's bust
ness is the refining of Oil and not the
seem as if this company had nothing
to lose by having petroleum upon the
free list since it would thereby be en-
abled to secure it's raw product upon
terms specially favorable. The further
fact has been brought out in the de-
bate that Russia is by no means the
only country outside the United States
that produces petroleum in large guam
titles, that as matter of fact the oil
80 miles long by 100 miles wide and
that the richest oil well in the history
of the world was struck in Mexico last
year. producing in 40 days more than
100000 barrels of crude oil. 1t is still
flowing at the rate of about 10. 900
miles day and is uncomfortable. The
oil from this well can be produced at
about 20 cents a barrel and it would
seem as if the ability to carry it free
| into the United States and deliver it
to the refineries of the Standard Oil
| Company would not by any means be
| disadvantage to that corporation.
In fact, the producers of Illinois and
Pennsylvania assert that if they were
| put in unrestricted competition with
the oil of Mexico they would be placed
| at a great disadvantage and that
practically all the benefits from such
free importation would accrue to the
Standard Oil Company inasmuch as
there are very few oil refineries in Mex
leo, and the producers Of that country
would be only too glad to dispose of
their product at low rates to SO good
a customer. These facts are certainly
of interest, for they demonstrate very
forcibly the large amount of misin-
formation which was foisted upon the