Los Angeles herald., 1910-07-03
ASSOCIATED CUTS
PRICE 10 GENTS
Oil Around San Francisco Bay
Now Sells at Less Than
ST a Barrel
UNION MEETS THE REDUCTION
War Between Marketing Agencies
and Not Surplus, the Cause
of the Depreciation
UNION MEETS THE REDUCTION

Whatever may be the real cause of
the reduction in the price of oil at San
Francisco-from 81 to 80 cents a bar
rel-it does not appear that the much
talked of over production had any
pthing to do with it. Well informed per-
sons declare that the reduction is due
to war between the several market
ing agencies. The cut was made by
the Associated and this cut was met
forthwith by the Union, which is the
marketing, factor of the Independent
Producers agency.
The first break in the price around
the bay to reach the public was when
the Associated made a contract with
the Fredericksburg brewery of San Jose
for oil at 80 cents 1t is said the AS
sociated made a much lower bid than
this for the business of a brewery in
San Francisco. 1t is the general be-
lief that the same company made a
contract with a Palo Alto consumer
some time ago for oil at a cents bar
rel These cuts in the price were made,
it is rumored while the Associated
was acting as party to a gentle
mans agreement. But the reduction
in the price was kept a guarded secret
by the parties to the several trans
actions.
When the other marketer learned of
the tactics being pursued it was COM
PEELED to meet the reduction, with the
result that now the prevailing price
around San Francisco is 80 cents a
barrel, and with the war still on be-
tween the two companies it is believed
that the price will be further reduced.
NO SURPRISE. TO BUYERS
The break in price does not surprise
consumers, many of whom have eX-
pected it for some time, says the Cali
fornia Oil World. It develops that
their reason for declining to sign new
contracts at the ruling price was due
not so much to the known heavy pro-
ductiOn and consequent surplus, but to
a quiet tip from the inside that the
price of oil would be lower. This tip
is said to have emanated from the AS
sociated offices and, strange to say,
the Union seemed unaware of it until
within the last day or two, when ennis
saries of that company got busy and
intimations were given that any offers
made by others would be matched by
the Union.
The efforts to get business today
have been strenuous, one large con-
sumer having been visited three times
by a representative of the Union, while
in close communication with the As
sociated bv means of the handy tele-
phone.
For some time, as it is we'll known.
both the Associated and the Standard
have been refusing any propositions
whatever to buy oil. This action on
the part of these marketers has been
exceedingly puZzling to the producers
who have tried to sell them oil. 1t
is understood that the Standard is we'll
supplied with fuel oil. This is likely
the reason it does not want to buy any
more.
ASSOCIATED Is SHORT
But it is known that the Associated
has none too much for the business 1t
is doing and has planned to do. In
fact, it is asserted and believed to be
short of oil. This shrouds it's refusal
to buy oil in sinister mystery. But
it is insisted that this refusal on the
part of the Associated to buy oil is
only an outward play for certain eff
feet; that it is quietly seeking to buy
oil from those whom it can trust.
For some time kind of general
status quo has been observed between
the three big marketers, the Associated,
the Standard and the UnionIn Indepen-
dents, regarding the matter of holding
up the market, pending a satisfactory
moral understanding. At the same time
the Associated has been harboring
wrath at the way, as it puts it, the In
NOUS 63 cent contract. Therefore moth
ing would please it more than to do
something that would disturb and dis
concert the business of the Union-In-
dependents. The management knows
the Union Independents have an over
plus of oil and does not believe they
can possibly dispose of it at any figure.
1t may be that the Associated has all
of it's contracts satisfactorily taken
nf nitrate the omen
market and thereby disturb prices to
get even with the Union Independents
on that old sore score.
In the meantime the organized In !
dependents are said to be well pre-
pared to cope with any eventuality
SHOULD STAND TOGETHER
Charles P. Fox, commenting upon the |
situation, says:
mo marketer on this coast is in a |
position to fight the other marketers
and the chances are that whichever of
the three is responsible will find itself
the victim of every effort of destruction |
the other two can exert against it. The
independents are the strongest under |
the conditions now surrounding the |
market, and that they will battle with |
all the strength there is in them is !
to be conceded.
'It is a life and death combat with |
them and they do not propose 10 ule |
but they may be depended upon to seek |
the death Of those who attack them. |
There is no hope for those who oppose
them. unless it be that compromise is |
brought about before the natural fin
ish comes.
"The Independents enter the jousts
with their lives in their hands and |
thew know it. This is not to be a pink
tea function. The world old antagonism
between the forces of privilege and
plutocracy and democracy is upper
most once more"
IN DEEP SAND
TAFT. July 1.-The Tumbadore Oil