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Newspaper Page Text
THE DAY BOOK!
N. D. COCHRAN
EDITOR AND PUBLISHER.
COO 5. PEOBIA ST. CHICAGO, TLU.
TelenhnftPQ Editorial. Monroe 363
SUBSCRIPTION By Carrier In Chi
cago, 30 cent a Month. By Mall.
United States and Canada. 13.00 a
Entered as second-class matter April
21, 1914 at the postoMlce at Chicago.
I1L. Under the Act of March 8. 187
STRIKE AT CRUDE OIL STORAGE
By W. A. Frisbfe,
Editor of the Minneapolis Daily News.
Along with the extortionate prices
of gasoline have come a universal
yammering and a jumping up and
down on the part of the public
Industry and pleasure are both af
fected. Congress is beginning to
have a vague consciousness that
something is the matter somewhere
and more sensitive M. CVs are bring-'l
ing m Dills designed as remedies.
The way to find where a wild ani
mal lives is to pick up Its trail and
follow it back to where it started. The
same method is applicable to mo
nopoly. Trailing back the Standard oil
from the consumer's end we come
first to the local distributing system,
then to the tank car, then to the re
finery, then to the storage tanks for
crude from which the refinery is sup
plied, then to the pipe lines and lastly
to the oil welL Wells Involve risk; a '
bore may be dry or a Tblower;" an or
ganization to handle all the wells ne
cessary to furnish Standard refineries
with sufficient crude would be com
plicated and costly.
Consequently the oil trust takes
the cheaper, quicker way of con
trolling the oil and gasoline business.
It Is done by means of the artificial
facilities for gathering, refining and
distributing the raw materials and
If the federal government really
decides to work for the relief of gas-
ollne consumers, it must consequent-
ly go after the trust where it lives: '
jiz., In its control of the TOOLS of J
production and distribution.
Pipe lines were the original weap-
ons of the oil monopoly. But they x
have been declared carriers of inter
state commerce and are accordingly J
subject to federal regulation. If they T
are still a strong factor in protecting '
monopoly, the way is already pro
vided to make their regulation more
But the storage tanks, the next sta
tion on the trail from well to consum
er, are NOT subject to any public
regulation whatever. Storage is the i
real answer to the present gasoline
It Is reported that the oil monopoly
maintains enough crude storage ca
pacity to keep its refineries going six
months. This means that the trust ,
can fill its storage when crude is
cheap. It can run from its storage
f6r a time, thus disappearing from
the market as a buyer of crude and
reducing the current demand to a
point where wells begin to cease
pumping and the supply is cut down. '
Then the trust comes into the mar
ket as a buyer again and bids up
crude prices regardless, knowing that
it needs but little to refill its storage,
but that the independents must pay
the top price for their crude since
they have comparatively little storage
Thus the trust is assured of an ad
equate supply of crude at minimum
prices all the time while the inde
pendents must buy from day to day
in a market completely dominated by
This manipulation has been per
formed again and again and every
time it has been followed by and ad
vance in gasoline prices. The trust
makes all the profit; the independents
take less profit from the high-priced
gasoline than they did before the br
Jhe finished products.