The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-03-16


A visit was paid to a gentleman who was known
to have an intimate knowledge OF the aim ana pur-
poses OF the company and he was requested 10 give
some information on the subject. lie reluctantly
deiailed some OF The facts in the organization. lie
stated substantially That some months ago relners
and producers OF OIL feeling that there was neccs
si,y Tor some united action as to raise the price
OF OIL and secure better ireshting terms attempted
a combination among themselves but it failed.
Later number OF oil capitalists attempted the organ
Haton OF the Southern Improvement Company and
succeeded. Among the reasons for The organzat ton
was the fact shat European governments levied
heavy duties on refined oil whllo they put light
one on the crude OIL. The result was that European
importers had arranged to do nearly all the I'm.
porting IN crude oil and refine 1t In Europe. They
hal arranged to transport 1t in bulk IN vessels con-
structed for the purpose instead OF In barrels, and
50 apparen, was 1t 10 the refiners that the
EXPLORATION OF THE CRUDE OIL
would complete y ruin the refining business, as
well the trade in barrels and the manufacture OF
chemicals used IN the refining process, tnat they
were forced 10 this united action. The company
was mainly organlzed ior tins purpose and they OK.
CmEcKMArE THE ENGLISH IMPORTER
by getting rebate or drawoack upon the freight
rates Another OBJECT was to make the refining
business more renunerative. The refining capacity
OF the country largely exceeds the demand ana the
worked a few months IN the year. The company
propose TO unite all the refining interests, ana
CLOSE ALI THE ESTABLISHMENTS
not abs olutely necessary 10 refine the product dis.
ripuling the business fairly between the great re-
lining centres. They also claim that the producer
Will be largely benefited by their combination, on
the ground That they VIII not be liaole TO bank
FORCED SALES OF OILS
at ruinous prices, as the company VIII have SUM-
cent capa TO purchase an mat Is produced nc iair
prices. With suncicnt capital to carry the oil they
VIII be enabled to prevent the sale of the crude pro-
,.nat IN Ep rIIsn itnn m no unl
DICTATE THEIR OWN TERMS
to foreign purchasers. II is claimed that the rates
the railway companies threaten TO abandon the
transportion and The result would be to cripple the
business. By TINS combination the friends OF the
scheme assert they eau pay the railway companies
fair profit, benefit the producer by
RAISING THE PRICE or THE JIL
and benefit all home interests at the expense OF
foreign refincrs aud importers. with this view
contract has been entered iato between the COM
THE THREE GREAT TRUNK LINES
the Pennsylvania Central, the New YORK Central
and the Eric, to carry the OIL 10 the market at liked
rates and secure drawbacks IN the event OF foreign
influences seeking to control the Article. 1t Is
claimed that some OF the railway companies are
represented IN The directory or as stockholders aud
that the latter are producers ana renners In dner-
eat parts of the country, including several OF those
In the oil regions The gentleman declined TO make
known the names OF the firms m the Oil regions
VINO mad oned the company. on Inc, ne ground tiat
would destroy their properly. lie stated that seVe
NEW YORK RErrNEns HAD JOINED THEN,
ana That wnen they understood more fully the OBJ
iecis OF the combination he Is satisfied 1t VIII meet
with their generous support ana sympatny. no
claimed tnat the charge that the rates had been IN
creased owing 10 the companys organization was
untrue, and gave the following
TARIFF or RATES,
per barrel, from the oil regions~to the points
named--
10 isoug and Cleveland, two years ago."...".S 81 90
10 rrs ss yn and Cleveland at present. 90
10 Ma. w. 'hcrly "
A''"' Nv
inc rates to Boston fifteen cents In advance Of
,nese rates anu those to Philadelphia fifteen cents
iess. ~ - admitted by tue advocates OF the scheme
that the brokers viii suffer from this Orpanzation
Dut tnat Tue rrouts now made Dy them viii 20 10
Tue producer anu the COMPANY aud tran sporcrs IN
al