The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-03-09
TEE PETROLEUM CONSPIRACY.
Intense Excitement in the Oil .Hegions-0ppoi
ton of the Producerssto the RAILROAD and
Shipping Monopolwss-Advwcsi in Oil
Freights- Measures Of Rslkf
rrrusvrLLE, Pa, March &, 1877

TwUsvILLE, Pa, March z, 1872
The Inhabitants Of the oil regions, during the last
eighteen days have been In a state Of profound ex-
cltemens over the discovery OF a great monopoly,
known as the Southern Improvement Company.
The founders OF the company reside ouS-'
side OF the region, and with the excepnons
perhaps, OF few iron tanks for storing crude OIL,
they own no property here. The company 10
Incorporated under two acts passed In the Pennsy1-
vania Leglslature-one IN 1868 and the other, sup
Elemental to the first, in 1870 The powe,s con-
ferred by botn these acts pass extraordinary latl-
tude; IN fact, the limits cannot easily be defined.
The principal parties 10 this combination, so fg as
has been ascertained, are Messrs P. II. Watson,
President OF Germantown Railroad; Rockafeller&
Paine, of Cleveland; Lockhart & Frew, OF Warlng;
Logan and Fawcett, OF Pittsburg; J. r.
Logan, OF Philadelphia J. A. BOstwick, OF
New York. together with the three great railways
running from the oil regtoh to the sedboard VIZ
and Great aSa ns
York Central and Lake Shore, with all other roads,
under their control, which, running from the heart
or the OIL regions, constitute their feeders.
BY no other railways than these three trunk
lines can petroleum find its way to the Auantlc
month. The precise nature OF the ORGANIZATION,
It's purposes and the SCOPE OF ITS proposed opera
sures made by different parties who were invited
to enter the company. and by this means
as as s wn real as s9s
derived from the members themselves, the
nnaoitants Of the oil region have suddenly been
aroused u the discovery OF most formidable cone
spiracy organized to seize upon and apDropr'ate
their peculiar property TO lts own uses, all too-
SaS lnas ss SSmpaay wss
to be dstrit uted among the three, lines, giving
nd e ns SsM crs a E p sn ov s
New York Central each tWent S and hai
o o Ne ns Yos and
to be go per barrel. OF so which there
S be to raIe e Of southern Darre
thus completely preventing competition In shipping
oil from any one outside or this company.
company's business. They have already purchased
all the large rehnerles both AT cleveland
sion Of works sumcieat In capacity to
refine refine all the product, they become
with the company III refining and shipping Oil. the
company. thus stanoing between producers and
ing, just such terms as should suit It's pleasure;
both producers ana consumers would be at III
mercy. such combination, embracing IN ITS
whose arms already grasp the Continent II
successful IN It's present tSs
gerous monopoly ever existing In America. Monday,
February 20 the freight on oil from the Creek to tine
increased over 81 per barrel.
The excitement on the announcement OF this was
opera House In TIusviile was literally packed
from parquet to dome by delegations from every
o. the bes Sae
duclng districts was formed, and, after Consider
able discussion the Convention adjourned to meet
at OIL City March l. On the 2Stn ult. the General
Committee met ana appointed from It's number sew
Val subcommittee to whom was specially en-
AFFORD both immediate and permanent relief. The
committees worked resolutely and faithfully.
large crowd. The Academy OF Music was occu-
pied by the Convention. sitting SIX hours, The
but partial repors Wnc we're 1scussed in DE
tall The Convention adjourned to meet at the
Court House In Franklin on the 5th following. THIS
meeting was as largely attended as the two former
ones with the same good order. The best talent in
the oil region was employed In drafting plans for
scheme for their mutual protection The committees
were upon the construction OF new railroads, upon
additional pipe lines, upon procuring legislation
The meeting at Franklin did not complete the
work and adjourned 10 meet again to-day at OIL
City. Night ana day from that adjournment till
last evening the special committee continued their
ana sas IN
committee adopted their reports, which were
unanimously readopted to-day BY the Conyen-
ton at large. All through the sttings Of the Con-
vention there has been exhibited large
amount OF GOODNESS ana patience on the part
the organization, adopted to-day, Is 'The Pro-
ducers' Union" the plan OF It's operation Is such
southern Improvement Company. IL Will DC found
that class OF men accustomed to risk every dollar
they possess IN sinking oil wells Will show them
selves capable OF making any sacrifice to repel q
conspiracy organized TO take from them. against
their will, what they know 10 be solely their own,
an income amounting annually, In the aggregate,
TO $40, 900, 900.
Without going into Details 1t may be said that II
the Southern Improvement Company shall per-
severe In It's attempts both crude ana refined oil
Tor foreign export Will find Its way to the ocean.
part by Lake Erie, the Weand Canal ana Lake On.
IL.
by river from Pittsburg to the Gull
OF Mexico, 1t beng possible TO lay pipes for carry
ing the oil from the region both to Erie and PITTS
burg. There Is already in the oil region capacIIy
for refining about One.half OF the product. In the
meantime the Pennsylvania Legislature Is being
asked to give us relief.