Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-01-26
Eclipse
Awes People and
Gluts Scientists
GASOLINE AND CRUDE
OIL PRICE B 0 0ST
FEATURE MARKETS

New York, Jan. 25.-(By A. P.)-
Indisputable evidences of the strong
underlying position of trade and in
dustry were supplied last week by
general advances in crude oil and
gasoline prices. by the remarkable
recuperative power of larger indie
pendent steel companies as shown
in reports for the last quarter of
1924, by the establishment of a sea-
sonal record for freight tramc and
by new peak prices for grain.
Although some moderation in new
buying of basic commodities was re-
ported, this was offset by renewed
activity in other lines, notably i'll in
creased demand for clothing, tex
tiles, shoes and other products in
anticipation of spring requirements.
The trend OF prices. while uneven,
was mainly toward higher levels.
The most significant development.
perhaps. in the weeks budget of
favorable news was the widespread
increase in gasoline and crude oil
prices, attesting to the improved
conditions in the oil industry. The
second general revision Of prices
within the past fortnight carried
gasoline from one to three cents a
gallon higher and crude oil up one
to five cents a barrel.
AS evidence that the increase in
raw and refined products was based
on a solid foundation, 1t was pointed
out that consumption, according TO
government figures, was exceeding
production, and stocks Of both crude
oil and the refined output were be-
ing heavily drawn upon. No new
fields, with the possible exception OF
Workman, appeared to offer promise
Of increased production. For the
past several years q balance of oil
consumption and production invart-
ably has been tie signal for an in
crease in prices, automatically en-
couraging a resumption of intensive
drilling, followed by another price
reaction. Leading oil men believe
that this danger has now been avert
ed.
A measure Of the recovery in the
steel industry in the closing months
of 1924 was supplied by the earnings
report of the Bethlehem Steel Cor
poration, which showed an increase
, of S3,OOOOOO in income over the pre-
cedine Quarter. The earnings COM
pared favorably with those for the
final quarter of 1923 and the first
quarter of 1924, when the Industry
was operating at high rate, and
enabled the company to close lts
year with a substantial surplus. De-
spite lessened activity in new BUYING
mill operations for the industry as
whole continued we'll above ~ per-
cent of capacity.
A new seasonal freight traffic rec
ord was established in the week end
ed January 10, when almost mil
| lion cars were loaded. In previous
wears this value was never attained
before February or March and rare
| " ever until midsummer. The nrst
December earnings reports to appear
we're favorable and demonstrated the
ability of the carriers further to re-
duce their operating expenses.
While prices continued to estab-
lish new high records. the May de-
livery closing near the weeks high
level of $1.96, a new wave or buylng
developed on a reduction in the Ca
madam crop estimated and brought
forth moves by foreign countries 10
meet requirements. Fears were ex-
pressed in some quarters, however
/ that the rapid rise in grain prices
might cut down European consump-
ton. Cotton ginning figures. lndi-
eating that the government Deem
her report had underestimate the
1924 crops caused some hesitancy IN
the cotton market.