232 KEl'OKT OF COMMISSIONEK OF FISH AND FISHERIES. 



MENHADEN OIL. 



Ill spenkiiig' of lisli oil iu ;i restricted seu.se along tlie Atlantic coast 

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

 the iiKMiliaden {Brevoortia tyramius), a member of tlie ClupeidiP or 

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

 species occurs from Maine to Texas, the principal fislung-giounds 

 being the bays and sounds fi-om Maine to North Carolina, witli the 

 addition of the Texas coast during the last two years. 



Tlie extraction of menhaden oil differs from the preparation of other 

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

 the li(iuids have been removed is usually greater in valiu^ than the 

 oil. Indeed, it was principally as a fertilizer that the nu^nhaden was 

 first utilized, the oil l)eing extracted as an incidental product . Because 

 of the greatei- value and inij)ortance of the scrap, the methods of 

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

 the second i^art of this report, relating to the preparation and utiliza- 

 tion of fertilizers from fishery products. (See j)]). 255-i'(J5.) 



While small quantities of menhaden oil were prei^ared for domestic 

 and local use previous to 18G0, there was comparativelj' 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 satisfa(;tion, the market price 

 quickly advanced to $1.40 in 18G5, the highest figure ever realized. 

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

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

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

 steamers and equipments, and a great overproduction. 



The excess of lu-oduction, a lack of cooperation among the factoiy- 

 men, and comijctition with substitutes resulted in a gradual reduction 

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

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

 necessity for protecting their invested capital led to concerted action 

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

 I)rices and also a limitation of the fishing season. Many factories 

 were closed and the vessels laid uj), 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 i^roducers resulted in an improvement in prices, wliich 

 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 

 189G 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 

 somewliat higher a fair i)rofit has been derived from the business by 

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

 their respective plants. 



