The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-04-08
David Kirk, of the Producers Pro-
tective Association, Examined.
He States That His Concern is q
Voluntary Organization,
Having No Connection With the
Standard Oil Company.
On the Other Hand It's Purpose Is 10
Protect Individual Members From
the Petroleum octopus-How
the Standard Did.

WARRINGTON, April THE investigation Of
the loil trust was resumed this morning by
the House committee on manufactures
David Kirk, OF Bradford, Pa, said he was q
member Of the executive board Of the Pro-
duscrs Protective association, Of Pcnnsyl-
vania and New York. IL was made up Of
1000 members, and had thirty-six local as.
scmblies. The cons titution OF the association
was put in evidence. Its preamble states
the object Of the organization to be TO in
cludc in one organization all producers Of
petroleum and those who are engaged in in.
dustrics incidental thereto and known 10 be
friendly 10 the producers interest, IN oplcr
that they may by united action aud all hon.
orablc means, protect aud defend their In
dustry against the nggrossions Of monopo-
listic transporter ctinerS, buyers and SELL
ers OF their product, in order that the pro-
ducors may reap the just reward OF their
capital and labor, and 20 this end encourage
and assist as far rs possible the refining aud
marketing Of their product and the sale d.
rect to the consumer by the producer The
association had no connection with the
Standard Oil company or trust, and no
member Of the trust was admitted into
the association, being barred by the constitu-
ton aud rules The primary object Of the
organiSation was 10 protect the members
against the Standard oil company, The
Standard oil company threw every possible
obstacle In the way Of oil reaching The rail-
roads or getting where an independent con.
ocrn could secure Il. The producers were
defeated In their attempts To secure lcgisn.
ton at the hands ~ the Pennsylvania Leg
islaturc and then formed this organization
Q.-Aftcr the organization was formed,
was any negotiation entered into with the
Standard OIL company
Ayes, sir After a great many plans
and Schemes had been produced II was
deemed best Ia meet the Standard and see
what they would do before We went into u
light. A committee was appointed aud ne
gutiations were conducted nt Saratoga, ~
Y, which resulted man agreement between
the association and the STANDARD company,
IN September last A contract was finally
entered into by the ncgntaturz. Their,
was about "a $4,000 barrels of crude oil
ON hand then. The standard company said
| that must hc got rid Of. The producers de-
sired. IN ease they reduced production. t.
| get the benefit III the advance on cNi,iinl
HfN'hf AiAiA " XVIII AlifNl ~ Nil
| then market price. After some time thl
standard people said they only had 1900
900 barrels, and agreed ~ give ~ half NJ u.
| cents. the market price. The producer,
agreed Ia reduce production IL 800 barrels u
day In case they carried nut this ngrcc.
ment for a year, the oil which was held on
their account was Ia be sold aud the profits
given the producers association to be dis.
tfihuicd tO each individual producer, IN pro.
the q oil La
Is his reduced production. az that b.OOn, O0l
barrels, i,OOOOOO was Immediately sct aside
for the benefit II tho lsbor thrown out of
employment. Afierwnrd another million
was secured from the Standard for the benc.
NJ 1T labor We thought We would wiring
another million ont Of tho Standard for that
purTo~, and went tn work and did II.
Representative buchanan expressed his
hnlz inent that any one hid succeeded In
NHnging anything out Of the Standard OIL
company.
The witness ,aid that the reduction IN pro.
duction was secured by means Of voluntary
signing of individual contracts. About I $50
men agreed 10 limit production. Others
signed contracts not ~ Increase production,
aud still Others agreed not ~ start new wells
or clean out old ones. some II the contmrts
were signed by persons not members ~ the
assof ialiUn. ~ the 3i,OJo1O harrrls on
hnud ~ TIE time OF tie agreement over -,
OO0,ooO were controlled by the Standard oil
trust
The amount II oil ON hand had been r..
duccd Ia 2lnO0.O0O on April I. The nycr7gc
daily reduction ~ production since the con.
tract took effect IN November lat had been
about 1900 barrels n day. IT which ts 40
WIS the result Of the shut IN contmrts The
reduction of production was chiefly due 10
the contracts, but there had also been
natural shrinkngc
Mr. smith asked N witness had really
thought they could by legislative enactment
Of Pennsylvania compel the standard oil
company Ia carry oil a. everybody.
Mltnesi-ics, We were suckers enough Ia
think ~. ! certainly thought that they
should regulate monster they had created.
Witness thought the pipe lines should be
owned by the State.
j. H. Godsborough Of Bradford. secretary
of the Producers Protective association, icsti.
fed that the association had paid the Well.
drillen' union $4,000 since The agreement
was made.
Mr. Kirk was recalled, aud said they under.
stood they were 10 have the support ~ the
standard In advancing prices but they did
not get u; on the contrary prices went down.
The Standards giving them G,OO0OO0 barrels
was a blum they did not think We would
carry out tho contract.
Adjourned subject "a call