The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1913-02-20
Wly Gasolire PrIees AdIanee.

Why Gasoline Prices Advance.
The automobile trade has lately be-
come considerably excited over sew
eral advances In the price OF gasoline.
and some OF the metropolitan news
papers have contained columns OF
matter denouncing the Standard Oil
Company particularly, and all oil
companies generally as having forced
/ the advance unnecessarily.
/ If the existing facts. however. are
taken fully into consideration, it
would be discovered that from the
standpoint Of the oil refner the adj
vance is not as great as might have
been anticipated.
In the first place, the Standard oil
Company has been accused Of unnec-
essarily advancing the price OF crude
oil, but statistics disclose the fact
that the crude oil production not only
Of the United States, but OF Russia
and Galatia as we'll, has been steadily
decreasing, and the only increased
production is in Mexico, and that Is
more or less. of an uncertain quantity,
and very low grade oil at best.
The increased prices for crude oil
were not only necessary from the
standpoint Of supply and demand, but
It was absolutely essential that the
-oil producer be given all the incentive
possible to clean out and thereby in
crease the production Of the old wells,
as Well as to seek new producing ter
ritories, and there was. necessarily
required very strong indueement,
IS the crop of dry holes for several
years past has been most discourag-
ing. -
During the last twelve months the
price of Pennsylvania oil has adj
vanced from $1.SO per barrel at the
wells to $3.50 per barrel of 40 gallons
Two gallons sut of every barrel is lost
in the refining process, and therefore
the forty gallons of product which
actually remains for the refner to
sell, have advanced in price $1.20 or
8 cents per gallon.
Out of every 100 gallons of crude
oil, approximately As gallons are IL
Illuminating Gil and Is gallons are
gasoline and the advance on these so
gallons at cents per gallon amounts
to $3.50. r.
!. In the last year the price on the
Is gallons of gasoline has advanced
approximately I cents or $l.O5, while
the price on the 20 gallons of 1llumi-
mating oil has only advanced ohe.cent
OF IS cents, making a total net adj
vance Of $3.50, or 80 cents less than
the advance in crude oil.
It therefore will be readily under
stood that although the prices of gaso-
line are very high, yet the refner
does not have the margin this year
that he had one. year ago. particularly
as lubrlcating oils and parattlne wax
have not advanced in proportion with
crude.
Sharp as the advance in gasoline
has been, 1t is not Of very great mo-
ment to the individual automobile
owner, as figuring on an average
mileage of 1900 miles per annum for
the ordinary pleasure-caf, and on the
very low mileage of ten miles per
gallon of gasoline, 1t is readily figured
that the advance Of cents per gal
Ion would only make an advance of
I$2S for the seasons operation of an
automobile. and as the entire expenses
of operating an automobile, including
depreciation on car, interest, chauf-
| feur, supplies, etc, varies from 81 900
TO $4,000 per annum, the increase In
gasoline only means an increase cost
in operation of from one to two and
one-half per cent, and the advance
in gasoline, therefore, while very
sharp, and creating considerable COM