Evening star., 1924-10-11
BY ROGER w. BABSON,
Special Dispa tch TO Tho Star

"ELLESLEY HILLS, Mass Octo-
Der 1.-THE prices of crude oil and
gasoline arc still being cut The lat
ter is selling at a tank wagon price
OF 10 cents in Ohio and is retailing at
II cents. In Tulsa it is selling at Z
cents gallon in tank-car lots, which
Is the lowest price reached thus far
thls year. The price range for 1923
at tulsa was 6is cents gallon to
a high of 14i9 cents. 1t is apparent
that gasoline and crude oil are sell
ing at very low prices at this time.
Reductions have been the rule with
all companies from the Atlantic to
the Pacific. Considering the large
amounts of oil, both crude and re-
fined, used every day. it is quite re-
markable that the market has brok en-
so sharply. Since every one is inter
eSted either as a user of petroleum
products or an investor in oil securi-
ties. an analysis of the industry is OF
more than passing interest.
RockefeIler-s View. on Oil.
When John D. Rockefeller, sr., re-
ceived message that the United
States Supreme Court had dissolved
the Standard Oil Company it is re-
ported that he made this statement
NEARLY half a century in the oil bus-
ness has taught me that it is profit
able only as it is controlled. Oil COM
panies may sell oil by cutting prices
but such warfare does not yield profit
] am through with the oil bushes ss. "
From that day to this. it is said, he
has never stepped his foot inside OF
26 Broadway.
Although the price of oil securities
went up considerably after this Su-
preme Court decision and although
the various split-up company stocks
sold in total for more than the old
company stock had ever sold, yet the
senior Mr.. Rockefeller never changed
his opinion. He was through with
the oil business and devoted himself
to golf. Things did not seem to work
out as he had predicted for some
years, but his forecast is now coming
true, because the competition be-
tween oil companies has become so
keen as to be practically ruinous. In
some localities the rush to put up
filing stations has become almost
humorous. One real estate man at
least has suggested the following
rhyme for every vacant corner lot:
Cheer up. little corner, don't you cry,
You'll be filling station by and by
Competition Very Keen.
This competition has become so
keen that it is reported now that
there is real enmity between the
Standard Oil companies themselves
1t is said that the president of one is
hardly on speaking terms with the
president of another, and that COM
petition is even keener between some
of the Standard Oil companies than
between the Standard of New Jersey
and some of the independent compa-
nies. w. l.. Mellon, president of the
Gulf, is often seen at the head Offices
of the Standard Oil in New York City
while officials of several Of the other
Standard companies have not been
seen there for months.
Some believe that this apparent es-
arrangement is purposely arranged in
order to lead the Government to think
that there is no collusion between the
individual Standard Oil companies
but such evidence as / have does not
justify such a conclusion. The fact
is clearly indicated that there is not
only keen competition between the
Standard companies and the inde.
pendent, but that the Standard are
divided against themselves This Is
the real reason for the present cha
| otic condition in the oil business.
Overproduction Always Exists.
1t is said that the industry is over.
produced, but there has always beer
| an overproduction of oil. The situa.
ton existed when Mr.. Rockefellel
| first started his small company il
Cleveland years ago. If there had no
been an overproduction of oil ther,
| never would have been any Standard
Oil Company. Moreover, the con
sumption of oil is greater than eve1
| and will increase continually eacl
| wear for many wears to come. Thi.
applies not only to gasoline, but t.
| fuel oil as we'll. The convenience ant
| cleanliness of oil heating for business
buildings and the residences is rap
idly being recognized and the de
| mand in this field is only begun.
| The use of oil for the heating o
| homes has truly tremendous futur,
and may even become the mos
| profitable end Of the business. I'm
provements In oil burning equipmen