The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1875-04-13
Anolhrr an ComhInation.

Another Oll SOIhnluhtlOu'
The New York Shigpiag Lii contains
an article in reference to a new combiua-
ton said to be i9 process of formation to
regulate and control the price Of petrO-
lium. The article claims that the old
South Improvement Company is to be re-
vived in substance; thai P, II. Watson,
who was one Of the originatOrs OF the
South Improvement Company, is in the
movement; and that all the large reiners
Of New York, with two exceptions, are
promoters Of the combination, and with
one Of those they have made running
agreement at a price which any other
year would have been considered ruin
ously low and they are now making des-
perato efforts to capture the other one.
The few small ones that are still outside
they try by turns to tlatter and Brighten
into their tOils-now promising large
profits as the result, and again limiting
that unless they "como in" they may get
frozen out" by the stuPendous system Of
drawbacks which they intimate will be
paid to the combination on their frcights
from the oil regions. They claim that
when they are once IN actual working
order, and have become about the only
shippers Of oil, that several trunk lines
to the interior will be glad to accept such
terms for transportation as they choose to
present
The Shipping List adds;
Its stated that the reliners, who have
already or shall become part Of the new
organization, are to pay into general
fund One.half Of cent per gallon for
whatever may be their proportion Of the
refining capacity nOminally as guarRn-
tee Of good, but actually rs pool for ex.
penses in purchasing other refneries,
paying officers, and meeting such other
expenses as the chiefs Of the Ring may
demand. Should anything be left out Of
the "poOln money, tits to b. divided at the
expiration OF certain time pro rata.
Should the fund meet with the customary
fate Of such transactions, the majority Of
the refners might wake up some day tO
the fact tina. they had made permanent
investments.
The Pittsburgh reiiners, who have been
inquired by the Pittsburgh Commercial
concerning the reported combination, say
there is but slight basis Of truth for the
Shipping ListS story. They deny the ex.
istence OF a combination for the purpose
Of controlling the price Of oil, but say
they have been trying to organize an as
ISOLATION whereby they may control the
production Of refined oil, which is now
largely In excess Of the demand, in consc.
qucnce Of which the business Of refining
has yielded very small profit in the past
year. The project however, contem.
plates no interference with either the
buying or selling prices Of oil. Every
person is to be left free to buy or sell on
his own terms The Commercial says:
One Of the plans talked Of here Is to
gauge every refinery and nllOt to each
percentage upon It's capacity, so az to cut
down the production to correspond more
nearly with the demand The percentage
Of all the refining Centers could be ascCr-
tanned and allotted in the same way. The
effect OF this would be to keep the supply
but slightly In excess Of the demand, and
toavOid oycrstOcking the market. Should
any reiiner, however, manufacture a
greater amount than his allotment, he
would be required to pay his half cent
per gallon OH all which he has refined,
and could only draw out Of the pool in
dividends, his pro rata based upon his
allotment. So half dozen manufacture
ers might exceed their aggregate allOt-
ment by say five hundred barrels per
week; while another reiiner, entitled to
run live hundred barrels per week, might
let his works remain idle, and content
himself with drawing his dividends upon
his allotment. In other words, II one
man ran more than his gauge capacity, he
would be made to pay upon that excess
for the benefit Of the others. Az We have
stated, this is one Of the ideas suggested,
but n. yet nothing definite has been &c.
complished. There Is to be no fund for
expenses, or for purchasing refneries, US
nothing Of that kind is contemplated.
The main object sought Is to limit the
production by putting penalty upon
those who are disposed to exceed fair
pro rata.
So far as Pittsburgh Is concerned,
nearly all the rehners favor the project.
Some few have not yet decided, but are
holding the proposition under advise.
ment. The same favorable feeling exists
in other places, so far "a they have been
heard from, and the probability is that
the plan will be successful.