232 KErORT OF COMMISSIONEK OF FISH AND FISHEBIES. 

 MENHADEN OIL. 



In speaking of fish oil in a restricted sense along the Atlantic coast 

 of the United States, reference is made generally to that yielded by 

 the menhaden {Brevoortia tyrannus), a member of the Clupeidm or 

 herring family, known locallj^ by a score or more of names. This 

 species occurs from Maine to Texas, the principal fishing-grounds 

 being the bays and sounds from Maine to North Carolina, with the 

 addition of the Texas coast during the last two years. 



The extraction of menhaden oil diifers from the ]3reparation of other 

 marine-animal oils in that the scrap or solid tissue remaining after 

 the liquids have been removed is usually greater in value than tlie 

 oil. Indeed, it was principally as a fertilizer that the menhaden was 

 first utilized, the oil being extracted as an incidental product. Because 

 of the greater value and importance of the scrap, the methods of 

 manipulating the fish, extracting the oil, and the like are described in 

 the second part of this report, relating to the preparation and utiliza- 

 tion of fertilizers from fisherj^ products. (See pp. 255-265.) 



While small quantities of menhaden oil were prepared for domestic 

 and local use previous to 1860, there was comparativel}" little marketed 

 previous to the civil war. The first lot on the New York market sold 

 at 75 cents per gallon and, its use giving satisfaction, the market price 

 quickly advanced to $1.40 in 1865, the highest figure ever realized. 

 For ten years the menhaden producers sold their crude oil within a 

 range of 50 cents and $1 per gallon, resulting in great profit. This 

 led to a large increase in the number of factories, the purchase of costly 

 steamers and equipments, and a great overproduction. 



The excess of production, a lack of cooperation among the factory- 

 men, and competition with substitutes resulted in a gradual I'eduction 

 of prices, until in the autumn of 1887 menhaden oil sold at 19 cents 

 per gallon, which was much below the cost of manufacture. The 

 necessity for protecting their invested capital led to concerted action . 

 among the producers and an attempt to bring about an agreement, on 

 prices and also a limitation of the fishing season. Many factories 

 were closed and the vessels laid uji, the owners i^referring to keep 

 them idle rather than to engage in unprofitable work. 



The diminished extent of the output and a better understanding 

 among the producers resulted in an improvement in prices, which 

 finally reached 40 cents per gallon in the spring of 1893. Then, owing 

 to unfavorable conditions, prices began to decrease until in the fall of 

 1896 crude northern menhaden oil was sold at 18 cents per gallon, the 

 lowest price ever reached. Since 1896 the business has been conducted 

 with much less competition and with greater economy by reason of 

 improved machinery and increased facilities, and as prices have been ^ 

 somewhat higher a fair profit has been derived from the business by 

 those whose invested capital is not greatly in excess of the value of 

 their respective plants. 



