The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-09-02
View of the Situation in
the Region.
THE PRODUCERS CONTRACT.
The Standard Oil Company to Answer
the State.

how far spread aud earnest Is the movement OF oil
producers against tho monopoly Of tho STANDARD OIL
Company aud the United Pipe Lines which prin-
cipaly owned by tho former association. People In
the East have scarcely any notion OF tho very excited
state OF the public mind here In those oil producing
valleys on this question. The monopoly has aered
tseli SO obnoxious to the VINO drilled their
wells and found supply Of oil that their
Indignation Is extrome OF course, and
very properly, any projects OF "wid JUS
lice" are discounteuauced by the more Intelligent
aud wiser leaders Of the now opposition movement,
who rely tor their remedies quo warranos and The
awakening OF the sentiment OF the people In favor OF
breaking the Ring As an evidence that these latter
are right Is only necessary TO draw attention to the
Tact that on Monday afternoon Governor Hsrtranft
came from Harrisburg TO Franklin consult with the
oil producers and hear their grievances. and that
upon the day Judge Charles E. Taylor at Frank
lin, granted tho quo varrauto OF the Attorney General
against the United Pipe Ii and set down l,h day
Of September Tor the company show by what author
ity claims to exercise the liberties aud franchises
following, to wt:-"rhe transportation aud storage
OF petroleum In the counties oil Venango, Warren.
Forrest Armstrong, Clarion, Buter, Erie, Crawford
and Mexican TO DO q body corporate In law and fact
and in oy that OF the "United Pipe Lines" In
the evening the Governor aud Attorney General Gil
bort were serenadod. and both made speeches which
savored strongly Oh an intention 10 protect inc
du GERS IN terests 1t may DO we'll TO state here
that those who opposed to tho producers move
ment give another explanation TO the significant visit
OF tina Governor ut this exciting juncture and
HERALD always gives both aides here IL ~
IS IT POLITICS?
Ny informant, Standard Company man, snys:-
'The Pennsylvania Railroad Was badly squeezed =
year two ago, when its stock going down rap
IDLY and rs credit sinking, by the Standard Company.
The latter wanted to mako certain contracts for
bates over tho road. but Tom SCOTT held out ma
wanted equal ireights. Upon this the al powerful
refining company sent no OIL over the Philadelphia
Eric, which OF course 10 OF tho feeders
OF the Central, nor over the Pennsylvania Central
iisolf, and MS tho credit OF the latter road
ebb and they could not afford to lose pay ing business
like the transportation OF OIL they hnd 10 agree 10 the
terms proposed. Now that an active opposition has
developed itself 70 The standard IN Western renpsyi
rant to throw tho weight OF hts official pow or on the
side OF tho oil producers, thus not only securing TO
the Pennsylvania Central once more It's
but gaining for himself popularity among tae work.
Ing classes, the value OF which, In a political cam-
psign. could not well DO over estimated"
THE CONTRACT.
In order that the readers OF the HERALD may CON.
prehsnd the cooperative contract the producers arc
pretty generally throughout the whole region, up.
pend copy obtained from tho chairman OF the
ISOLATION -
whereas u is understood and declared aud parties
hereto Airec tha. is sssepta TO the mutual safety
Of saS o. Of pss
10 dsvnr adopting and carrying on, such msssurss IA
= iis.s ,i pro Ssss:;
city 81 f:sasss1: S x.:ss..iss s
on saA -- 81 and 'h' Stat. Of d., ssua, y
Operate. 70 tina. Snd With tho said ...osoa and It's
saa Ss the ISsas adva1'.so Of all par
!ho said - hereby appoint he said 'rho os CITY
.he sale he crude p.Ssa% wlica may 30
rsSdness T. make such sales arssr alto" s
s % s 81 a.: the
and s. u s their The sale: .. re 20 nj
producers en.sring into said arrangement that
.sssss ?:
agree not 70 revoke this agency within from
vidsd. that II said any time not obtain
niue. e, y. ~, y e y .-S :; that tim. the
demand .so association shall rstuss tall make such
oSsr assn,. At tho said higher open
. that tn the an have g.
Of the service; Si The saS The Pc
ssp q 1t any ps,ss"m winch %S
ss.Sey and in case OF any violation a.sso, 70 p"y
to said ss.oeistion. as Bqudatsi damages tho ca.
s s:s S 80 ' ss:iou s q til. a..s.
o asa yea. az a the % as rs
shall so.d BY said a.oc.,oa for srsa,sr price than
barrel shah invested ior benefit By 800 SAL. AID
The said Tine Oil City Petroleum. PRODUCERS, As.ocia.
,ion gintee hereby accepts the agency tor the sale OF
producers, uDos 1s eonoo'. forth herein and
Wines The signature. otss psrsis. Isrsso' this -
day vi -, A. ID. 1878.
II 10 claimed that by this agreement tho power TO
control the product OF oil by tho united limos will
cst producers this city the subject your cor
Respondent drove about lour miles of town this
Of well. IN Ss S.SSrd rho
residence oil Colonel Davidson Is situated the
grsa. Imperial Refinery Of the Standard OIL Company,
overlooking tue Allegheny River.
WINS OF PRACTICAL OPERATOR
Tho gentleman s,d:--''I have objection TO give
you my views Tor what they are worth. have been
drilling wells and operating In oil Tor fifteen years
Most Of my ventures have been above this po,u and
the bulk OF my interests lie now IN Butler CLARION
and Mckoap. think tho plan OF the producers rs
weak IN QUO essential pont--hsy seon 10 ignore tho
laws Of supply and demand. In holding back, or
All this plan involves Is I, hold much back IN
reserve Tor future market This would all be very
pose buyors and spectators will inform them
selves OF thisf Besides, the majority Of shs loss
contract with idea that II will almost i'm msdatoIy
advance tho price of their product. This 70 q weak
s,oercd The erort Tor co operation and making one
firm OF themselves has commended tsef 10 wisest
men men ~ tho business rnsy sec .ha, oy uniting
monopoly inevitably. Look what tho renncrs have
been able TO do by working with tho railroad"
"But would not the producsrs n tbis cooperative
scheme succeeds, become themselves a nonopoiy
and Substitute for tho standard OIL COMPANY the Re-
trolcum Producors' Association (Iimitedr"
Colonel Davidson ropiisd :'.fnoro IL some truth In
thai but whore the railway rates were the Tor
all shippers, which 10 not the ease this would
soon regulate tssL First do away with the present
nbusc.u
'wnat arc tho abuses complained Of In the upper
oil hsds and which nado tho Bradford meeting such
a succsssy"
'rhe power Of the Standard Company, which reefs
illegally on drawbacks IRON railroads tue difficulties
thrown In tho way OF tho Equitable Pipe Liue 10
taolishng connections With our wells ieaving ~ with
overlooking tanks the producer having no option but
70 sell his crude OIL TO tho Standard Company, and
rcmatoing AZ their mercy"
Your correspondent hero read portion OF his Ia.
tervew with the friend OF the Standard on Company
IN regard to tho PenDsyivaoia Railroad. Colonel Ds-
wilson said:-"I do not agree with his views. Tue
PsDnsyl vanm Refosd rccsyed. under the OF the
standard OIL Company, by tho old contracts, tho
lion snare Of the freigbts. ortynvs per cent When
ned