THE KEROSENE MONOPOLY.

Tuapeka Times, Volume XXXIV, Issue 4868, 26 June 1901, Page 2

THE KEROSENE MONOPOLY.

It seems there is likely to be a possibility that for some time, at least, kerosene may be bought at such a price as will prevent it becoming a luxury. The explanation of such a gratifying state of things reminds one of the saying that when thieves fall out honest men get their due. In this instance the falling out had been between the oil trusts, who had entered into what in international combinations is called an offensive and defensive alliance. As in all such dishonest compacts, the desire on both sides was to take every advantage of each other and observe the terms entered into onlt as long as it suited the interests of the moment. Hither* to it appears the American Standard Oil Company and the owners of the Russian wells at Baku had under agreement, confined their operation! to certain well-defined spheres, under which agreement the trade of Australasia fell to the Standard Oil Company. There appears to have been a split ; at any rate there is to be competition for the colonial trade, and the first shipment of 4,500 cubic tons of oil in bulk from Baku was received in Australia the other day by the arrival of a steamer of the Shell transport service* Oil from Borneo is, it appears, also to compete, and oil tanks are being laid down in Sydney and Melbourne. The Standard Oil Company, to meet this competition, has adopted what may be described as characteristic American methods. A syndicate known as the Colonial Oil Company has been formed to handle the Colonial trade. This company has appointed an agent in each centre, and wholesale pur* chases can be made only through these agents, who will keep stocks. Before the agent will Bell to a merchant or wholesale buyer the latter will be required to sign an agreement ! not to sell at more or lobs than 9d per gallon ; further, the fixed selling price of the agent to the wholesalers is Bd, thus leaving the, latter with a margin of Id j but if the merchant signs an agreement not to handle any other oil during a period of six months he will at tha *&£ of that period receive a concession of id per gallon on all oil sold to hind, provided the terms, of the agreement have been strictly" carried out. The objects in view by the Colonial Oil Company are to encourage the use of the Standard oil by the public by fixing a low price and to squeeze the merchants of their profits, and force them into handling the American Trust oil for favors* to come. If the Colonial Company succeeds in shutting out competitors, as it will in all likelihood do if the public are 1 caught by the many baits held out, then the price of oil will be raised to recover the losses now incurred in fighting competition. The Russian ana Borneo oils, it is stated, will be found quite as good illuminants as the American product and as the Sothscbilds are reported to be interested in the Hassian oil, the competition ought to be very interesting aad let US hope it may bo an extended one.