Henderson daily dispatch., 1937-09-03
Rabson Says Oil Industry
Nav Soon Become Utility
Continued from Page One.)

lie under the earth'S surface no one
knows. Petroleum economists, how
ever, feel that reserves are sufficient
for many years. It is true that op-
Grating costs have been rising recent
ly. But volume is so much greater
and methods are so much more eff
ficient than few years back that
higher costs have been largely offset.
Since the early days of oil burners,
the price of cruGe oil has fallen 35
per cent. Meanwhile, fuel oil, chang
ing it's status from by-product to
one of natural demand, is only five
per cent cheaper. During the same pc
riod electricity has dropped 81 per
cent and anthracite 81 per cent.
Tewnty years ago heating homes by
oil was a novelty. Today. in many
communities, there are more oil heat
ers than coal furnaces. Since 1929
there have been about 100000 oil
burners Sold To the '-uyers of these
burners, oil is utility. Any change
in the price affects them materially.
The average annual domestic oil bill
runs over $10O while the average cleo
tricity charge is only $36 per year. A
$500 budget item makes better tar
get for political clap-trap than a $50
bill, especially if the $100 bill is sud-
denly lacked up $40 or $20 Most new
burner installations are not convert
ible into coal or gas furnaces. Hence,
householders feel they are married"
to oil.
Meat For Politicians.
AS more and more people use oil
fba me i1ofn oil
campaign material rises. He can
charge that the industry needs regula-
ton because it is AFFECTED with a
public interest" He can get votes,
too, if the consumer thinks that lower
prices will result. The politician may
accuse the oil companies of selling
burners directly to the public, so they
could later on jack up their oil prices.
The electric and gas utilities have
been accused of the same procedure.
The vote-getters may also charge the
oil companies with keeping fuel prices
low until a lot of burners were in
stalled and then gradually squeezing
the price up on consumers. So I feel
! that the oil companies are treading
on dangerous ground.
prices will he the fostering of COM
petition. The anthracite coal indus
try is making a real attempt at
comeback. The automatic stoker has
given the hard-coaI people strong
weapon to fight oil competition. For
instance, the sale of stokers in this
first half of 1887 was IS per cent
above the same period last year.
while burner sales were up only %
per cent. Now, in addition to this
good gain, the oil companies are Civ
ing stoker statesmen their best talk
ing point: "The original installation
may be little more expensive, Mr..
Jones, but have you noticed how the
price Of oil has been boosted lately?
1t has gone UP twenty-five per cent
in the last year or two. How I'd hate
to be tied up to an Oil burner!"
Lift For Gas Companies.
Then too, the artificial gas COM
panies are right ON their toes They
want to get into the home-heating
field to make up for the inroad that
the electric stove is making on their
gas load They have the ideal fuel
1t is clean,-no smudge, no film, no
SCOT, no ashes. It is convenient-no
tank, no coal bin. 1t gives even heat.
But in most areas it is too costly. IF
it could compete with oil in price it
would chase most of the Oil burner
people out of business. Now the oil
companies are obligingly helping the
gas companies. Gas heater ir1stalla-
lions will jump perpendicularly if oil
prices are raised too fast.
Another effect of advances in the
price of fuel Oil will ice increased &C
tivity among cooperatives. Statistics
show that the American cooperatives
have had better luck with gasoline
and oil than any other product. IF
fuel is offered to consumers by the
cooperatives on as attractive terms ais
gasoline, this movement should make
increased Roadway. Wasteful competf-
ton Keeps oil distributing expenses at
high level despite the huge gain in
petroleum consumption. The four
gasoline stations at your nearest in
tersection are not paid for by the oil
executives. You readers pay for this
ridiculous duplication in your gaso
line and fuel OIL prices.
Still Bullish On Oil Stocks.
am not, however, bearish on the
future of the petroleum business or
its securities. In fact, l feel that OIL
is one of the most attractive indus
tries for investment today. But am
afraid of the regulatory angle. Public
regulation does not always add to the
savings of the consumer nor to the
profits of the company. There may
come a time when it will be absolute
ly necessary for OIL companies to