El Paso herald. (El Paso, Tex.) 1901-1931, 1912-10-31
MAY TAKE CRUDE
OIL FROM MARKET
Report Says Standard Finds
1t More Profitable to
Refine It.


Local crude oil consumers have been
much Interested in the announcement
IN the Iron Trade Review, of Chicago.
that the Standard Oil company would
withdraw fuel oil from the market af-
ter Dec. 1, and that no more crude oil
would be contracted for by that com
pany after that date.
While the Standard does not have Of
uces IN FL PasOs the effect upon tie
Price OF oil here, should the Standard
decide TO Withdraw crude oil from the
trade, would be to boost the price of
crude oil beyond the point where it
could be used with economy BY manu-
LECTURERS Tor generating heat. The rea-
son Tor the reported stopping of the
saLe OF cr9oe Oh by the big oil trust
was arrived at after q series of inVesti-
SarlOns to determine the profits TO be
MADE from the sale OF crude oil and the
same oil after it had been refined The
results obtained favored the refined
product over the sale of crude oil The
automobile is held directly responsible
Tor this result as it uses gasoline. Iu-
bricating oil and other byproducts Of
the crude petroleum
Locally, the oil companies say they
have heard nothing OF such a radical
change in the oil market The man
ayers OF the Texas company are out of
the city at this time, but the clerks say
that they have heard nothing to the ef-
feet that the Standard would withdraw
oil and boost the price. D. c. Booth
manager OF the Magnolia Petroleum
company says he is closing contracts
every day for crude oil FOR fuel, md
that he has closed two this week and
recently closed one to begin Dec. Is.
The Pierce FOrdyce Oil association does
not handle fuel oil and the manager in
FL PasO says he knows nothing of such
a change. Coal dealers. who would be
interested in the reported change be-
cause it would make the demand for
coal greater should the price Of fuel
oil be boosted, say they know nothing
Of it.
G. H. & s. A. big OH User.
The @. H & S. A railroad is the only
one running into FL Paso which burns
OIL r W. connolly, assistant superin-
tendent, says that he has had not advice
TO that effect. The q. II. owns its own
oil wells in Texas, which supply the
railroad, but superintendent Connolly
says that should the crude oil be with
drawn from the general market the f.
feet on the price OF this grade Of oil
would be to increase it to a point where
the railroads could not afford to use
it for fuel.
smeIter Knows Nothing Of It.
The Ell PasO smelter is the largest
consumer of fuel oil in FL PasO. Be
tween 500 and 200 barrels are used
there each day. No notice of the discon-
unuance of the supply has been re-
ceiVed at the smelter offices and three
cars Of oil were spotted on the shelter
sldlng thursday. The city uses fuel
oil for the WaterWOrks plant and also
for the sewage disposal plant. A lew
contract is about to be made at a lower
next year with the privilege of con-
tinuing it for three years at the S; me
price. The FL PasO foundry also uses
fuel oil. None Of these institutions
have received any notice OF the with
draWal OF fuel oil from the market or
the increase in price resulting from
such d withdrawal by the Standard
company The Electric Railway COM
pany discontinued the use Of oil for
fuel some time ago because coal could
De bought at a cheaper price than oil.
Coal is now used exclusively for fuel
at the power plant.
The price Of crude oil is now s1.55,
which is p cents higher than it has
been in the past, oil dealers say. In
Kansas City the Standard agent has
refused to renew contracts expiring
this year and has refused to make any
new contracts. This was accompanied
by an announcement that the Standard
was going out Of the fuel oil business.
1t is said that the withdrawal Of fuel
oil viii cause an increase Of so percent
in the price OF some manufactured ar
ticles, such as steel castings and some
steel plants have already announced an
increase in their products, according to
the Kansas City papers.