THE OIL WAR.

Taranaki Daily News, Volume LIII, Issue 197, 29 November 1910, Page 3

THE OIL WAR.

GOVERNMENTS IN THE' FIGHT. ROCKEFELLER'S DEMANDS. London, October 3. It is now clear that the Standard Oil Company, headed by Mr. Rockefeller, the richest man in the" world, is engaged in the greatest fight of its existence.

The Trust has to meet Governments as well as individuals. The Hungarian Minister of Finance has announced that a Bill will shortly be introduced creatin;.' a State monopoly for the sinking of petroleum wells. * Already tlie Austrian Government and the Roumanian Government have been engaged in fights with the Trust, With its organisations established in three continents, the Standard Oil Company is now meeting with opposition such as it has never had to face before. In the past it has crushed individuals and triumphed with comparative ease over rivals. It is now on the defensive, and has opened up a stern fight to maintain its position. The increase of oil production and the recent multiplication of oil companies are factors in the situation. Moreover, there has come into the field a powerful and confident rival of the Trust ready to do 'battle with it. A combination of the Shell Trading and Transport Company, the Royal Dutch Petroleum Company, and the Asiatic Petroleum Company, with Sir Marcus Samuel, of London, as the controlling head, has secured enormous oil wells, and has built up a widespread business with ramifications over Europe and Asia. Forty millions is the market value of the Samuel companies, and sixty millions is the capital on the side of the Trust.

Tlie two great concerns maintained for a time an equilibrium of prices, but in August there was a split. On the side of tlie Shell companies it is stated that the Trust came forward with a proposal that it should receive 25 per cent, of the 05 per cent, of the petrol trade of Europe held by.Sir Marcus amalgamation. After the proposal had been rejected there came the break-up of the arrangement as to prices. Following this, the Trust announced that it was going to cut prices in Europe and the East. This has been taken as an open declaration of war. The Trust, moreover, made it quite clear that by its new move it intends to drive new companies from the field. The Standard Oil Company, with its principal rivals, is engaged in the disposal of the products of the crude oil, two of the principal constituents being kerosen2 (or paraffin), used for illuminating purposes, and petrol, used for motors. Tlie representative of the AngloAmerican Oil Company gives the following comparative wholesale prices, showing the drop since hostilities were opened:—Kerosene, 3% per gallon (previous price 4'/■,); petrol, 10VJ.fl' per gallon (Is

The Anglo-American Ottrfpany, though' it has its own business, is nevertheless associated with the Standard' Oil Company of America. One of its ltMHifg officials, in London explained the situation from what may be regarded as the Standard Oil Company's point of view. ''Owing to the great production," he said, '-there is now too much illuminatm? oil—thoujh not an over-supply of petrof. Too much oil—that sums up the situation. The consequence is that prices are going to he low until the existing surplus is reduced to the normal. So far as the Anglo-American Company is concerned, we have a great business, and we. arc going to preserve it. We shall simplv follow prices.''

The Anglo-American Company stales definitely that the first drop in prices was madi', not by the Standard Oil Company or any of its auxiliaries, but bv their opponents here.