New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-10-30
THE PETROLEUM QUESTION


TITUsvILLE, Pa, Oct. 2G.--In a letter from
this city under date Of September o. the writer
account Of the origin Of the movement then max
ing by which the production OF petroleum througbout
the Pennsylvania oil regions Suspend y 10 remain
for period Of 80 days. and also the plan and purposes
Of the combination Of rcnDers then in operation about
month which had forced cooperation part OF
the producers As then stated every well in the region
shut down with the understanding that 1t should re-
main for the time specified above. Ny prediction that
this time would be used perfecting scheme for
permanent relief has been fulfilled, and the wells are
now rosuming pumping under plan which, II It BE- az
successful its projectors contemplate will provo moro
inautous than that Of the deunct south Improvement
Company During the excitement consequent upon tho
exposure OF the plan Of that Company the Petroleum
roducers Union formed for the purpose OF
ing the proposed monopoly and this Uaion has been
made the groundwork Of the from which the plan
given below springs. Under the r. 7. Union the region
was divided into IS districts each with local organiz
ton and representation in a general committee Upon
the shutting down Of the wells and at the instance OF
this general committee special election Of delegates
was held in each district, resulting many Of tie Oil
delegates returning, with fair sprnkliDg Of new men,
On getting together It thought best to form new
organization. and committee appointed for the pur
pose reported that the object Of 1t should be the cocc-
ton and dissemination Of valuable statistics and inor
nation respecting the production Of petroleum. the Sc
curing Of the most advantageous facilities for transpor
taton the protection the producing interest against
unriendy legislation and against all unjust exacions
by whatever threatened or attempted, and tho
general improvement Of the methods Of producing and
handling OIL There several minor proyisons-One
fixing the representation IN the Committee on the basis
OF production and adding delegates at large, and an
other changing the name Of the body to 1.-THE General
Council OF the Petroleum Association Of Pennsylvania
The plan was after considerable debate adopted, ana
the work Of framing permanent measure Of reci men
begun. The drafting Of was left to committee oil
,rbf, 4 V al Culver. Penn uOtDIlcty, was
made Chairman.
TIE NEW MONOPOLY sCHEsfE.
The fayorite schemes certain wOulcbe leaders were
Immediately troted out and after several stcngs with
mutual concessions by their advocates, plan was
evolved which, with some alterations by tue Council
sitting in Committee of the Whole was adopted It's
principal features the work OF MI Culver, who, win
lis usual stock Of visionary and as has heretofore been
proved costly ideas, backed up by arguments TO provo
the financial practcabity Of the mpractcaoe, sought
to form combination include producers, transporta
ton lines and reAners, thus controlling and fixing he
price Of every barrel Of oil thrown on the market I
agreed to- but the plan adopted, briefly stated
Fy That there sHa be established under the auspices Of e CuH
eli organization under he sanction Of the laws Of @ "a
'l os T e,i os ba not be Ies thsh $ 10000 share.
Of 100 EACH to be subscribed for only By members Of tie a''oa,n Or
mo No taI,iers made without approval ~ The
FOURTH The business OF the Agency managed by Dosr
Ts A'o Boor oon0s q one Ts'H's' ron each local
Htio0. shall attend hitrpia hl i.ta
s-sI: The Local Association, may roa. eoH, to OF =
lcrutnus 20 The r7i -tocki OBJ u DO" ''
as whole be .ss i..,i S ly at & l 15 cent
o4 i l 5s s ss.5 e oi .1i IN too @ aai apor.
and ne Organization Of ne agency l.g5 S Il
Treasurer The trustees appointed BY Local Assoeatol. 90
The amounts received BY then on ecoagt Of s9sor o. e
aseaer a, sDT agency on the he Of de rasays
res Members Of the Association shan se 'ter oil Onr 70 ne
sseHcy. D. sgelg slai- q',.-' q. s m oo,'. y pa
Tor e heavy o. q tie Enh District Payment for Of p9elss @
o. Drasor. or he Council sasI determine Tat dc daily ol
give The seller ee-'scate guIHg Dim to the res rreee' @ s
oil E5s9 '9d ,s' ile allYl4 a.. a. -- ' i r, sr,r.
AHA To the redemption Of ,he certificate Oh snl e ah
Piled the proceeds Of ali the Old soil during "l les
i-e AMOUNT a11lge and e -oqn. y a.A ins s-
render the entitled 20 uk receipt representing bis Interest
in The amount Of surplus o. IN store and tanAage M,
the oil such commission per barrel as Council allow applicable.
ts S to e Pa,a[1s Sl s s 20 5f ' % @ on
s az S an b ~ tb e StS Of he b.r '- Ns sur
Th The agency SIAN establish sobageuees at such points within
may Necessary facilitate the convel ami economical trncu5a
Of he business Of the region sosei to The appro, the Council
H ttS me me ssaey 70 e,r ~ III 81 h IN irt l t.y
he inform AZ ali be subsgeuces on the Inc Of the rails v -
Opoucus district provided be practicable TO 50 arrange via Tho
FSGSeata. barrel shall be uniformly ~ gaOu,
n. S sac wGsHf he dtn s 5'S 5 Council & is S
the production shah be restrained and shall tale uh measures . mT
be practicable aud lawful TO TIE dg Of OF wells
bat shall conne s orders, far practc- prgeuung tls
starting wells allowing those already Of dng DO
SSsnEn Whenever in the opinion n the Board Of DrscOrh
may advisable may subject the approval OF the Council pro
VICE s 'Se i Tsss5s E ss sS De 20 ] S A
Eighteenth The shall time eel contract with
make arrangement whatever with individual orgHzato
combination By which they have monopoly ods
advantage preference to the prejudice Of any pD.
Ss roSs H. hands pr5id hat nothas IL this section shall G 50
construed the agency with the sano tie cornell from
making such temporary discrimination As may De nea of h par
pose Of protecting promoting the Interests Of podue,s By eca
creased margins between the Price Of crude refined oils
Enenh The agency With The approval Of he Council may take
troleum by securing is application to new
ing the amount Of o purchased the oil sold and The paoe
during the day; also the destination q the oil SOLD
reports Of all its transactions and showing its condition the date 4
committee may appointed by the Board Of D
rect by the Council meeting for the Purpose Of s
and 70 make true and faithful report condition
0f The sa Of the agency they ma, De- found ~ % os as sy
In alton and report and published least 10 every year
Tssnt-ird agency shan establish Bureau Of Statistics and
Information shall carefully collect and publish fcs reatak
bane Of producing refining marketing and the consumption
THE PURPOSES THE MoNoPoLY-ITs PROBABLE
FAILURE.
Expressed in few words, the above plan proposes an
immense bank agency; centerng in this agency OF
the buying and selling OF oil; fixing OF the price Of
crude oil at S. per baTrel restraining OF production
when necessary by the radical process Of stopping the
drilling OF wells the providing OF refining capacity
II required for the maintenance OF high prices for OIL
and finally combination with railroads TO fix the rates
OF freight and create monopoly OF transportation, tue
fourteenth section paving the way for this, Now
wherein does the above differ in anticipated results:
from the plan OF the South Improvement Company
That Company sought TO force high priced oil lie
consumers y controlling ali the outlets for il; the pro-
ducers propose 20 do II by decreasing aud controlling
faff ann, limit Of