The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-09-05
OIL MONOPOLY.
Both Sides Of the Exciting
Question.
INSIDE HISTORY.
The Standard Company Explain and the
Producers Follow


the STANDARD Oh Company is likely 10 have political
significance we'll II is with great satisfaction that
your correspondent able present this letter TO
the HERALD both sides OF the great question
In interviews with the represe of the Standard
Oil Company and United Pipe lines on the one part
and on the side of the shippers and producers with
Mr. Henry G. Ohlen whose demands for oil transport
tation to the seaboard precpitated the legal conflict
already mentioned.
THE STANDARDS POSITION.
According TO previous appointment waited on MI.
Joseph Sccp, the agent Of the Standard Company,
this morning at his Offices the Western Union
Telegraph rooms in the OIL Exchange and was re-
ceived with much courtesy. Mr.. seep mas been in
this region for a number of years, Is thor
oughly familiar with the business all
OF its ramfcatons, and, Notwithstanding ne
Is the agent OF J. A. Bostwck and the
Standard Oil Company, is personally one OF the most
popular men in Western Pennsylvania. In answer TO
questions regard the present unsatisfactory
Of affairs In the oil country Mr.. seep said:-
'You tell me you tried TO get Information from
Standard representative both New York city and
through this region with but indifferent success.
Now, have objection 70 give tho HERALD all the
Information possess about the presen. situation for
three reasons One Ia that up to this time the pro-
ducers have had 1t all their own way In the news
papers, putting forth many ridiculous statements
which unworthy OF contradiction; second, there
Is nothing TO conceal In regard to the Standard Com
pany and United Pipe lines and lastly because am
producer Of oil and my interests In oil production
are Eve to to my profits relations with the
companies banned"
"May venture to ask. Mr.. Seep, whore your pro-
ducing interests lie p"
sCertainly. In the American and Quartette Oil
companies, which produce nearly 6vo hundred bar
Aav IIxyI
wells, so think talk you the broad plat
form OF the producer well as from the Standard
standpoint. The whole OF trouble In the oil
region lies in excessive production. 1t averages
NJ least forty five thousand barrels day. about half
or more than halt, OF which comes from the Bradford
region, but at 81 barrel, the price the Stand
ard people have been paying for crude oil. this
acquainted WITH. In company have done
very best to treat everybody fairly but the pressure
to sell oil is great that believe II Is with dihi
Guilty the price is Kept Al the present figure"
TANKS OVERLOOKING
In explanation ana connrmatory OF his position
MI seep took from MS desk bundle OF teie2raphic
dispatches and permitted The writer to peruse some
OF them. They were nearly all from Bradford aud j.
offered to the standard Company lots OF 200 and
10, barrels OF petroleum. and even beseechcd him
that their tanks should be empted by tho company's
pipes, SO they should not overflow Mr. Seep con-
tinued--
snow, the Standard has every disposition TO &C
rommoaaie, 30 telegrapkcd 10 Mr.. Bostwick know
what to 90; that OH was pressing 50 much. Here
his reply the substance OF which Ia We are decid.
sdiy OF opinion that II rs best accept round lots
Of oil, but 10 accommodate the greatest number OF
Small producers.'"
PRODUCERS ALL SPECULATE
"But, Mr.. Seep," the writer asked, ''how do you
account for The almost unanimous ieeiing througho6
the region against your organizations II you the
bcneaciors OF the producers, your statement would
seem mpiy?'
..Because nearly all the producers are spectators
Some Of them are long OF oil 81 so per barrel and
disgusied at the present price besides every
who has well bull believes tho hi gh price
oil oil Many Of them remember the time when they
sold 1t at Sl4 Darrell they do rcmem-
Der the perod when they glad to get 1.-Two
friends CONCERNED IN producing oil at Bradford we
sell AS fast we can at these prices. We have a
twenty-five thousand barrel tank at the place named
and empty II as fast as possible at prices
and are very well satisfied with our prodts.'
Then your remedy Tor the present low price OF oil
Decidedly. But they vii not II. l met tho
other day one OF the most violent OF the producers
asked nim II he had signed the contract He said,
" es we'll show you STANDARD mon that gong
TO manage our own business 'We, what arc you
doing al Bradfordf' asked. Puting down nve ew
wells what you long that for 2 said, 'as
the over production Is keeping oil low Getting
ready Tor winter, was the reply And that is what
they all doing-driiling arng and getting ready
for winter"
RAILWAY DISCRIMINATION
"But there is other complaint, Mr. Seep, against
your companies; that you control railway transp
lion to the seaeoard that outside shippers cannot
get cars"
swell suppose you -elcr the ohen difficulty
and Erie railroad. Will give you my understand
ness has been In operation, has only recognized one
shipper Frst-Gould, FISK, harley aud those asso-
cialov with them second-Bostwick and Tiford.
ihird-Adnsh Neyhar, who sold out TO Charles
Pratt Co., VINO now nave tho control OF Erie
0hen applies tor and feels aggrieveo when Pratt
Co. all the tnemselves-and get them. l |
have tried myself when agent Tor Bostwick and TIL
ford To get but could The Erie railroad
having been aoe TO build sufficient number of
themselves Pratt * Co. nave built winch they
own running them their road, OF course at
their own convcniebce."
In conclusion Mr.. scep expressed the opinion that
the law OF supply and demand alone would regulate
the price OF OIL and that even II the STANDARD Com
pany would cooperate with the producers, bstter |
prices for the crude product would not prevail
rHK ornER SIDE
Mr. Henry Q. Ohien 10 rscog OF the most
active business men IN tho region and very large
shipper OF petroleum, wncn he Gun get the cars HIS
following views Cleaned to-day IRON him the
producers aud shippers griev.ncrs. which. MS before
ag aInst the Erie Railroad Company This gentleman
said: 1.-THE same difficulty does not exist to-day in
rcSa,a 70 cars 10 'Io empire iIne rcans,vanis nan,
changed Now there II such a close arrangement
between the Standard OH Company and the railroads
that when the former want TO snip all they
have 10 do Is TO Intimate that TACT 1 |
am getting or can get all the cars l want the
railroad but here the United Pipe Lines
stop In aud tnat outsoe Shippers instead OF tax
Ing oil from the river districts ION Greek and Allc
ghany Biver territory. must take u IRON tho
owslt leaves the entire control OF the lower
Try TO the standard and ,hs oil is mucn superior to
that OF the Bradford fields; and order work up
tno lower grade produced the latter district river
oil Is necessary TO mix with II IN order procure the
requisite standard As Offset to this the
people viii say their New YORK ng
thor OIL from the Bradford distrct they have
control OF river oil IT Is difficult them TO NIX
SHIPMENTS.
shipments from the region have averaged 90, 900
barrels per day during August In April Incy aver
aged $1,000 barrels day. when the latter aver.
age prevailed We could not get two cars A
day ON tue claim that they were all use rnis
seems a conclusive argument that when u Is TO tho
interest Of The Standard OIL Company not TO give
ears the railway discrimination comes rhey own
the United Pipe Lines, and the dnec-
tors IA this city assert their iDdepcndepce barriers
arc thrown 10 the way OF outside parties Going
back only i've weeks producers nave been oblsed 70
tell immediate shipmsnts' The prevailing price
for the averaged ana e-nalf csnts per
barrel under the certificate market as quoted On
the OH Exchange. To explain this:-Ihe United
Pipe Lines have positively refused To run producers
oil unless they SOLD ~ Immediate Shipment
thus working into the hands OF the standard Com.
pany b. forcing producers 10 sell thor entire prod