The Birmingham age-herald., 1919-05-07
THE STANDARD OIL;
 HOW TT DEVELOPED
By HOLLAND.

l ents was made by the Wall Street
 Journal was there realization of the magnitude, not only of the Standard Oil companies, but also of the appre-
 citation in the market price of their l securities. The statistics demonstrate
 that the Standard Oil companies as
 whole now command market for their securities which is in excess of 1 $2,500, ,000, 900. Therefore the corpora tions which are identified by the Stan
 dard Oil name and which, before the
 dissolution of the original corporation
 was ordered by the United States su- preme court, constituted the Standard 1 Oil company now, taken as a whole, represent the largest aggregation of | capital engaged in exploiting a leading American resource. Of course, these figures represent the price which the securities command in the market Measured by the market price of the capital stock, the Standard Oil wealth ! is equivalent to nearly one-half of the | aggregate amount which the Secre-
 tary of the Treasury Mir Glass, has | asked the American people to sub scribe to the Victory Loan.
 There is another American industry, much younger in it's career than the Standard Oil company, which it is now proper to call a two- bilIion-dol1 in- dustry. That is the United States Steel Icorporation, but the statement that it ranks on equal terms with the Stand ard Oil industry is based upon the fact ! that it's business in 1918 aggregated l $2, 800, ,000 000
 ! Both of these organizations are oc- cupied in exploiting natural resources | Of the united States of a kind which | are obtained from mines or wells, and both of them, having obtained the crude resources, convert them into a vast variety of commodities, which lind great market not only in the United States but throughout the rest
 of the world. The Wall Street Jour naPs figures show that the market value of the stock of the companies which made up the former Standard 1 Oil combination has increased by the almost incredible amount of two bill s2,100 O00O00 since the suprem ecourt ordered the dissolution of the former combination. At first this apparently abnormal increase Tn the market value of the securities n'lsht be regarded as due wholly to the order of the supreme court which commanded the dissolution of the orig nal company. But a careful study of the situation, especially that which has prevailed since 1914, will show that the order of the supreme court is responsible only. indirectly for the wonderful appreciation in the marke. value of the securities since dissolu ton was ordered five years ago.
 A VERY GREAT INDUSTRY It IS the world demand for oil and tne various products which are obtained rom 1t which in great measure explains the increase in the market value of the securities. The various constituent com panies have stimulated increased pro- auction of oil, and they have been asso- ciated directly or indirectly with irde- pendent corporations which have devef- oped new oil resources in the Unified
 States since 1914. It is the understane- ing that Standard Oil interests are now associated with the Texas and Pacific Coai and Oil company, although this as- sociatlon does not go farther than a paf- tial interest. This Texas Oil company is the fortunate possessor of suddenly developed and accidently discovered vaSc oil resources in northern central Texas The executive heads of the various con- stituent Standard Oil companies have en-. couraged production and have done so because some apprehension has prevailed lest the oil CT petroleum resources Of the United States may be exhausted with ! Tn twenty years. This is merely an ap- prehension, for there is no certainty tho1 our oil resources will be exhausted b% ! the mid-year of the present century Yey at that present rate of consumption, ex- | haustion will come before 194O unless new and very large resources are discovered and exploited.
 WHAT CAUSED GREAT GROWTH The same commercial conditions which ! nave created or which represent the enormous increase of the worlds demand ' for oil and it's various products explain | in considerable measure the unprece- dented appreciation in the market price since 1914 of the securities of the varppus I constituent Standard Oil companies. To- day the civilized world is dependsH. upon oil and it's various products R
 Is absolutely dependent upon oil for lu- | brication. pr. David Day, one of the
 best authorities in the United States upo,.
 oil resources and production. who is ncW ! occupied with testing the value of the oil shale resources of Colorado, said re gently that without lubricants modern in dustrial life would come to an end AL
 most all of the other products which crude oil is made to yield might, if there were necessity, be abandoned, because other commodities, crude perhaps and very unsatisfactory, might take their place As for instance substitutes for gasoline, perhaps some of the products of alcohol, might be found. But oil is vital
 as a lubricant. No thing can take it's iplace Even if the production of castor oil is speeded up to the highest that would not be adequate for lubricant pur- poses.
 | Walter Clark Teagle. president of the | Standard Oil company of New Jersey, said the other day that at least 10 per cent of all the oil yearly produced in | the United States is utilized for lubrica- | ton purposes. But there is worldwide
 and constantly increasing demand for alt of the products which science has se- cured from crude oil. The market for these products is found in all but savage countries. One of the former constituent Standard Oil companies has invested s75,- 100000 so that the marketing of Ameri-
 can oil and it's products in the far east may be facilitated.
 Then again. the Standard Oil company has taught American industry valuable lessons whereby the cost of production E
 steadily decreased, while at the same
 time the standard of wages remains high.
 while wonderfully perfected piece Of
 machinery such as this organization is
 has enabled the Standard Oil people
 steadily to make reasonable gains and to
 secure the highest possible production
 The worlds demand for oil, much of
 which the United States through the
 Standard Oil and other corporations en-
 gagged in this industry has chiefly met, is
 to be enlarged by the utilization of oil
 for fuel It is not too much to say that
 the skillfully perfected organization of
 the United States Steel corporation re-
 fleets in some measure the lesson taught
 lby the earlier organization of the Stand
 ard Oil company. Certainly the skilled
 efficiency with which this corporation