Unsettled Oil

Export Petroleum Association, Inc. was formed to handle the export business of members. Prices are changed only by a unanimous vote. Large exporters have recently contended that export prices are too high, fail to reflect the supply & demand situation, hinder selling in foreign markets. Some members have been interested in keeping the price high. A few oil companies not belonging to the Association have been underselling it. Last week Export Petroleum Association suddenly withdrew its price schedule; each company will now handle its own exporting, compete with other U. S. companies abroad

Generally accepted as the reason for the move is the belief that Standard Oil of New York and Vacuum Oil wish freedom in their fight with the Royal Dutch-Shell group, intend to intensify that fight in answer to Shell Union's invasion of the U. S. market. Standard of New Jersey and Texas Corp. were likewise reported as about to take larger parts in the international oil war. Meanwhile the gasoline situation in the U. S. becomes more acute with stocks mounting, prices dropping.

Kettleman. Oilmen hailed as a big step toward conservation a plan whereby Kettleman North Dome Association will be formed to operate that rich field as a unit, distributing products among members in ratio to their acreage, whether developed or not.

Cosden Receivership. In 1925 the most typical example of the oilman whose wells had gushed richly was Joshua S. Cosden, head of Cosden & Co. He had vast estates in Palm Beach and Long Island, entertained lavishly, followed horses as well as stocks. His wealth was estimated at $50,000,000. Surely his expenditures lent veracity to this figure. But after heavy losses in the stockmarket he lost control of Cosden & Co. which became Mid-Continent Petroleum Corp., was reported financially down & out. Three years later his friends financed a projected comeback. He moved from Manhattan to Fort Worth, energetically entered the oil industry through the new Cosden Oil Co. in which he had been given a half interest. In five states he obtained leases, built an organization. While friends gladly reported that Mr. Cosden had promised to "lay off the market," he nevertheless must have watched with pride the swing in his stock which carried it to $135 last year. At this time it was estimated that his second fortune had risen to some $15,000,000, and there were stories that he was prepared to buy control of Mid-Continent Petroleum.

Last week Cosden Oil Co. stock sold at $1 3/4 a share. Although the stock has been dropping steadily for many months (1930 high: $74!), the direct news causing last week's new low was word that a receiver had been appointed, that the company admitted it was unable to pay current debts. How much Mr. Cosden was hurt by the drop was not known. There were rumors that last year he took advantage of the stock's wild move to sell some of his holdings. Badly hurt by the stock's earlier drop was J. A. Sisto & Co. (TIME, Oct 13).

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