The Washington times., 1923-05-07
OIL DOMINATES
ALL NATIONS
COUNCILS
Conferences Called to Settle
All Manner Of Questions End
on Petroleum Squabble.

All Manner of Questions End
on Petroleum Squabble.
This is the first of a series OF
air articles ON the worldwide oil
situation prepared for The WASH.
ingfOn Times by w. >. COUSINS,
financial editor of COSmOpOntan
News Service.
BY w. 5. COUSINS.
fcopyright. 1928. by Cosmopolitan News
Service.l
NEW YORK, May The big.
gest questions in international re-
lationships today is oil.
The bone Of contention between
tbe nowerf,li nations of the worlo
4 the control and operation OF
the source Of crude petroleum, tnat
nnuid driving power revolution1zing
nnodern industry. Domestic con-
ferences summoned for the settle
ment Of vexing problems OF ca
farnal relationships resolved tnem-
selves into the meeting ground Tor
the champions of the oil rights
of the various nationalitles; Wnlle
che man in the street catching up
fI1e strain. wonders IL the cost OF
running his flivver will, in a year
or two, be beyond his slenoer
means. -,
The American Congress has, by
special investigation. sQugnt 70 !,
discover. the real status OF the OIL
industry in those parts OF the
world over which 1t holds Juris'
diction; the companies engaGeu,
capital employed and the genera
policy followed in. the obtaining, re-
timing and distribution OF OIL PROD
ucts. In the interest OF the PEG
pie, Congress wants to know Il the
current selling. price of gasoline Is
fair and equitable.
Still Have Hold.
1t was largely through such an
investigation that the greedy; grasp
ing. unlawful methods of the Origi-
nal Standard Oil Trust were first
disclosed and the Government suit
to dissolve the trust built up. But
while the Standard Oil group has
been disjointed to the extent OF
legal requirements, there is little
doubt that these "disjointed' units
still have an iron grasp on the re-
filming and distribution Of oil prod
ucts, and are in a position to die
tate the prices of crude oil which
they purchase from other com
panies and the refined prducts they
sell to the public.
With genius for crushing its
competitors, the old Standard Oil
Trust SO dominated the oil industry
that until 1906, when the Govern
ment4s dissolution suit was filed,
more than so per cent OF all the
oil business in the country pass
ed through its hands 1t was not,
however, a pioneer in the dicovery
Of new sources OF petroleum, either
in this country or in foreign fields.
It permitted the independents or
so-caIled wild eats to explore
these remote regions, and made its.
own scale OF prices for the crude
oil offered.
But the legal dissolution of the
STANDARD Oil Company of New Jer-
sey and the rapid advance in the
power and prestige of the independ-
ent companies has resulted in a
smaller comparative volume of the
retail sales of the former group
and the Congressional investigation
of August, 1922, disclosed that the
Standard Oil companies are hand
ling not more than so. per cent OF
the total retail gasoline business Of
the country
u. s. Best Distributor.
No nation in the world has dis
tribution facilities comparable to
America Competition has been SO
keen that gasoline tank retail sales
are made at practically every coun.
try cross road, at suburban retail
grocery stores, as well as at the
centers of transportation in sthe
cities.
For transportation of crude oil to
the .refineries, the country's equip.
n1ent consists of no less than 1885,.
900 tank cars and 5000 miles OF
pipe line.
One important drawback to the
petroleum industry, however, is the
lack of sufficient storage facilities.
and 1t is to this factor that can
he ascribed the frequent fluctuations
in the retail price of gasoline.
The oil companies must husband
their summer products for winter
consumption. task which has
become increasingly difficult with
the enormous expansion of public
demand for motor fuel That there
shown, however, by reports of the
United States Geological Survey
stating that at the end of February
there was seventy-two days sup.
ply of gasoline on hand, compared
with an average storage of about
thirty days supply in 1919. The
situation, is, therefore, by no
means as alarming as during par1
of the war period. when the coIn.
try's stock Of gasoline declined to
as low as seventeen DAYS SUD.
ply.
Gasoline consumption in 1928 will.
by all indications, shatter the
records of former years. Estimates
made by oil experts in this city
indicate that 1850, 900 900 gallons
will be used this year as compared
with the previous maximum of
5000, 900 900 gallons.
tTOmOrrOw's article will deal with
world production Of OiI.)
Connecticut Ave. Dinner.