Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1883-01-09
PIPE LINE CERTIFICATES.

The Oil City Petroleum Exchange Takes
Action on the Newspaper Reports of Bo-
gus Certifcates-The Law Governing
Their Issue and the Penalty for Fraud
The DerogatOry Reports Claimed to be
Without Foundation.
OH CRY, Pa, Jan. 6.-For several weeks
articles have been published in various
papers throughout the country, charging
the united pipe lines with issuing more
petroleum certificates than was represent
ed by the oil in the custody of the lines.
These articles it is supposed were pub
lished in the interest of some of the bear
clique, for the purpose of destroying con-
fidence in the oil certificates, and creating
panic. Saturday afternoon the mem
bers of the Oil City exchange took action
on these reports, and in answer to them
unanimously passed the following resolu-
tons:
WHEREAS, Articles in certain papers in
our state have attacked the integrity of the
united pipe lines by alleging that they
have not the amount of oil in the tanks as
represented by their sworn statements, and
that the pipe lines are using the stock in
their custody for speculative purposes, to
the injury of the many holders of said oil;
and,
WHEREAS, The said papers are advising
the holders of said certificates to appeal to
the legislature to have examiners appointed
and ascertain the true condition of said
lines. Thus overlooking the act
of the legislature of May %, 1878, sections
Is, 16, IL and 20 of Parton's digest, which
provides as follows: Section 15-The
holders of any receipts, certificates, accept
ed orders or other evidence of petroleum
in store may petition the judge of the
county court through which such line runs
for an examination of the condition of
said line, who shall appoint such number
of impartial, disinterested and expert per-
sons as may be asked for in said petition
as examiners, and shall fix the amount of
their compensation. Section 16 provides
that the court or judge shall by an order
ers to inspect the books and
measure the petroleum in the custody of
the association company, etc., and that the
examiners shall be sworn to perform their
duties with fidelity and accuracy. Section
II provides that it shall be the duty of
such association, etc., and their officers,
agents and employees to give Immediately,
upon request of any such authorized exam
iner, all information needed in such petit
ton, and also give full access to all their
offices, books, tanks, pipes and accounts.
Section 20 provides for a fine and
sentence of any officer, agent,
manager, superintendent and other en-
ployes of the corporation company
engaged in the transportation by pipe line
of petroleum, crude or refined, or the stor-
age thereof, who shall refuse or neglect,
after demand is made, to give such exami-
ner full and free access to all Offices, tanks,
accounts, etc., the penalty shall be, on
conviction, fine not exceeding $1,000, or
a term in prison of not less than three
months nor more than one year.
RESOLVED, That we have full and unquali-
fed faith in the management of
said lines, and that their
sworn statements represent their true
condition. That they do not speculate,
and under no circumstances ever issue GER
tifcates, unless the settlement called for
by such certificates is actually in the tanks
controlled by said lines.
RESOLVED, That this exchange will aid any
person or persons in making any exami-
nation according to the law referred to.
There was not dissenting vote on the
passage of these, and the oil men expressed
their full faith in the integrity of the
united pipe lines and denounced the pub
lished articles referred 10 as malicious and
41l 4ba 60