The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-04-07
THE OIL TRUST.

Testimony Showing the Method of Shutting
Or the supply from the OIL Wells.
WASHINGTON, April 5.-The House committee
on manufactures to-day began inquiry int@
the alleged Standard Oh Trust, under the
authority conferred upon the committee by the
House to investigate all trusts or combinations.
Henry Webster, of Bradford, Pa, contractor
for drilling oil wells testified that he was q
member of the Oil Well-drillers' Union, a labor
organization composed of nine lodges, represent-
ing practically the entire northern Pennsylvania
and southern New York oil fields It was an
entirely separate body from the so-called Pro-
ducers' Association. The union was organized
Dec. s. 1887, and numbered between 1900 and
q 400 men. Witness refused to divulge the
names of the officers. Before the formation OF
the union work in drilling and cleaning out oil
wells had become very slack, owing to the de-
termination of the Producers Association to di-
minish the production of oil. It was understood
that l. 900 600 barrels of oil had been set apart
by the Standard Oil Company, and one million
by the Producers Association for the benefit OF
the laborine men thrown out by this shutting
down. The Wsl-drillsrs' Union was formed 10 Sc
cure the benefit of this action. Since the union
was formed oil drilling had practically ceased
The witness had done work since that date
and mad received S75 as his share of the amount
set aside for those thrown out OF work. The
witness laid before the committee a copy of the
agree ment entered into on D@c. ZZ 1851, De-
tween the executive board of the Producers
Protective Association and the executive board
of the Well-driers' Union. This contract pro.
yldes, among other things, that the Prod ucers'
Association shall paw TO the Well-driilers' Union
the profits one million barrels of oil and the
residue of profit another million barrels
ing the other classes of labor injured by
the shutdown movement, the cost price Oh
the oil being 62 cents per barrel on Nov. 1. 1885,
and subject TO interest, storage and fire loss
nh fraYr 4 hat dafQ
distributed among the members or the Welis
drillers' Union, who have been thrown out or
employment. This oil shall De held oy the
Producers Association and sold by them when
they think proper, but not faster than one
fourth every three months. All persons ems
titled to the benefit shall devote their time ana
attention 70 the stoppage oe the drilling during
the continuance OF the agreement, and shall res
port weekly to a designated of5eer La eacn
the executive board of the local lodges, whose
duty it shall be to keep looKoue
for and to endeavor 10 prevent the
drilling of wells when ordered 10 DO SO
hv either of the parties to the agreemeEt
Members OF the committee shall receive VI per
day and expenses, In addition 70 their pay az
uf,ion shall engage in the drilling cleaning
out of any we'll in the light oil fields without the
consent OF an officer of the Producers Pr6Tect-
i've Association in the district TO which 40
belongs The witness stated his belief that
there had been attempts 10 drill wells In his
fMcKeanl county since the agreement went into
effect without the consent OF tue parkleS ~ Ills
contract. He had heard OF three attempts being
made 10 destroy apparatus that was TO be used
il drilling these wells
Chairman Bacon read a newspaper extraes
giving an account of an oil 'srig" which had been
blown mp near West Branch. the reason being
stated that It's owner refused TO join the Union
and shut down. aud she witness stated fhat the
reports were exaggerated, according TO current
reports in the nei ehborhood
Queston--Do you know whether this organl-
zation Was formed at the suggestion % tne
STANDARD OIL Company for the purpose of max
ing il more convenient for them 10 transfer 70
the workmen their share of the oi4 Answer
No do not know The purpose or the shut
down was Is diminish the production and AFFORD
opportunity to decrease the Surplus OF oil Ine
witness said: $50 near as / understand IT. there
was about % COO eco barrels Of oil on hand Tne
cost al carrying il. storage, etc. was eonsldera-
ble It was eambled with on the markets daily
and 1t gave the abort interest or bears &Fsa<