New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-21
WHY DEARER Ol?'
Standard Says Conditions Have
Chanued Since 1911.

Under the caption why Bearer vi
and Gasolene?" the Standard OH Com
pany Yesterday issued a statement eA-
ulaining the reasons for the current hiSh
prices prevailing in the industry Inc
statement is prepared by W. H. Lipo''
who is described as having 'had Hie
long associations with the OH business
not only in this country. but abroad eii''
nently qualifying him to SPEAK authoil
tatively." lie explains that the greater
cost Of petroleum products since the De-
ginning Of 1912 are due TO the fact that
new conditions have developed increasing
the demand, while the productive ca
pacity OF the country has diminished
lie continues:
The remarkable increase ian the cost OF
living has been Tor several years a subJeGt
Of serious economic and puOhc unrest. ~
has been especially noticeable thdt Uhui
l9l2 petroleum ana its products uld not
participate in the general advance IN price
applicable 10 most hecessarlea Oh ne ~, ~,
government tables covering ten years
prior TO 1911 showed a STEADY increase III
the cost of hundreds of commodities,
while oil continued at lo% lever anu
subject only to inconSpiCuOuS huctuauonS.
SO clearly was this demonstrated Ill the
defence of the Standard OIL Company III
the government suits that neither the
federal trial court nor the supreme court
of the United States, in It's innings, al
lege that the company had acted IN
cquitably as to the prices II established.
The contention Of tn" government ana 'ne
public had been 10 the contrary 49,,
The year 1872 developed new condltloNS ,
the worldwide increase in the demand
for petroleum proaucts. conSpicuouSN
gasolcnc: the steadily diminishing pro
auction Of the qualities Of crude OIL from
H.. 81. L..
commercially dervable and the STEADY
encroachment upon surplus stocks on
hand.
As the inevitable outcome of the fore,
going conditions. there has been married.
advance in the price of the higher quar-
ties of crude oil. as evidenced by govern.
nent records for 1912. viz, an advance or
about 81 per cent on Pennsylvania crude
about 81 per cent on Kansas ana Okla
homa. about 81 per cent on Illinois, etc
Even the heavy Texas oil. with its m
considerable yield of Illuminating oil ana
gasoene, has advanced about 10 per cent.
while the California crude, principally
utilized for fuel purposes, has advanced
about s per cent, despite increase OF pro-
duction.
Referring again to government figures.
the total production of all grades of crude
oil in the United States for 1872 was ~
100000 barrels or about 2O9GD barrels less
than in 1911. there being an increase ni
about 100000 barrels of heavy gravity
production. and more than correspond
ing decrease of the light gravity produc-
ton
The greatly enhanced cost Of the CRUDE
material had for its inevitable sequel an
advance In the manufactured prouuCis,
and notably i'm gasolene. the demand for
which is being met with the greatest ar
fculty, owing to the worldwide muItpl-
cation of automobiles, motor boats, en-
gipeS. etc
Gasolene is a by-product only. and rep
rosents very small percentage OF inc
output of rehneries. even when the pest
quality of crude oil is being refined.
while il is hoped" concludes Mr..
Libby. that the higher prices being PAID
for crude oil will stimulate the discovery
Of new fields of the requisite quality, no
decline in the price Of gasolene can be
foreshadowed, unless in the event either
oc larger supply or lessened demand