The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1917-08-07

New Y OIk, August O.--NfopCCi1l.J
Sutro brought to New York day or TWO
ago upon his return from viist to Call
fornia some encouraging reports of crop
conditions and industry there, but on
the other hand one that was very ols-
couraging. He spoke of the approach OF
something like stagnation in the crude
oil industry of California and there ap-
peared to be a hint in what he said OF
criticism of the governments action IN
neither itself causing the oil to be
secured nor allowing anybody else to
exploit those enormous deposits.
Mr. Sutro's comment supplements a
statement made few days ago by
President Bedford of the Standard Oil
company and some things which Harry
F. Sinclair and others who are prom1-
nent in the oil industry have recently
said. President Bedford wrote with ex-
IRENE caution when he intimated that
unless there was curtailment of the use
of gasoline or increased production OF
crude oil the visible supply would in the
United States be exhausted within a
year.
Mr.. Bedford, Mr.. Sinclair and others
49,
oil industry has caused a serious mem
ace to arise, not only to the government
itself, but to American industries. Sup
pose, for instance, that the government
should make a demand for. say, 100000
barrels of highly refined oil for the use
of the American armies in France. The
government might be able by comman-
deering some part of the visible supply
to secure this amount once or twice. But
the government cannot commander the
agencies which are necessary to be en-
ployed if there is to be an increased pro-
duction of crude oil. 1t has been said
that the government cannot commander
nature, nor can any of the oil producers
do that The oil producers, for instance,
find great difficulty in securing the ex-
pert leadership characterized by the work
of prospectors The prospectors, for in
stance, may report that surface indica-
lions justify digging of 10 wells in par
ticular locality, but actual borings are
likely to show that eight or nine of these
wells are what are called clusters that
is to say, dry holes. One well out of the
ten may produce magnificently. But the
pTOSp6ClOIS have " DC pau llbCi oily LII
all the expert work they do and the oil
producers cannot afford the very great
expense entailed thereby unless they are
reasonably assured of good prices and
large production.
Out of crude oil there are produced to-
day about $500 by-products of different
kinds and those who should know say
that there is no product in use today of
such Importance to general industry as
crude oil and it's by-products. Among
these by-products are gasolene. kero-
sene lubricants, certain forms of explo-
sives, medical articles, including inter
nal lubricants in the manufacture of
which the Americans surpass even the
Russians. Then there is fuel oil, CONNER
cial wakes, roofing material road oil,
paints, and literally hundreds of differ
ent kinds of lubricants.
Much has been written and said with
in the past year or two of the ability
of the United States to take away from
Germany the supremacy that country had
attained before the war in the manufac-
ture of dyestuffs. But if there should
be a shortage in the production of crude
oil the growing dyestuff industry in the
United States would thereby be greatly
imperilled.
Were there crude oil in plenty, then
there undoubtedly would be large out
put of by-products of new kinds for the
capacity of crude oil properly treated
to develop materials of value in industry
and trade and which are really by-prod-
ucts is limited only by the researches of
the chemists. The materials used in the
oil business have within a year or two
advanced by as much as 100 per cent.
whereas crude oil has advanced only
about 10 per cent.
The chief apprehension somewhat eau
tiously confessed by the oil producers of
the United States is based upon their
fear of the attitude of the government
toward production. They confess that it
has already impaired the business be-
cause the prospector has become discour-
aged and will no longer take chances.
Consequently no new oil pools or fields
have been of late discovered. 1t might
be good policy to substitute the prospec-
tor.
Another attitude of the government
which causes apprehension is this: While
disagreement proposes to tax and COM