New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-04-08
THE OIL COMBINATION.
TESTIMONY BEFORE A HOUSE COMMITTEE
AN OIL PRODUCER GIVES THE PARTICULARS OF THE
SHUT-DOwN MOVEMENT.


SHUTDOWN MOVEMENT.
WASHINGTON, April david Kirk an oil
producer, of Bradford Penn, was examined by
the House Committee on Manufactures this morn
ing The Producers Association, he testified
was voluntary association and was not incOr-
porated. He a member of the Executive
Board of the General Assembly Of the Associa-
ton There were between 1900 and 1000 men
in the Association, divided into thirty-six local
assemblies He under oath not TO reveal
the business transactions of the Association nor
the names Of It's officers, though witness knew Of
no special reason why anything should be with
held Producers of petroleum, dealers in oil well
supplies relDers ana PERSONS engaged in huslrcss
whose interests were supposed TO be the same as
those of producers, were eligible TO membership
Ia tnc Association
The constitution of the Association was put in
evidence. It's preamble states the object OF the
organization 70 be 10 include IN one organization
all producers of petroleum, and those VINO are
engaged ia industries incidental thereto, and
known TO be friendly 10 the producers Interest,"
IN order that they may by united action and all
honorable means. protect and defend their indus
Try against the aggrcsSlOns Of mOnOpollstlc trans
pOrters, rinerS, buyers and sellers Of their pro
duct. The Association had no connection with
the Standard Oh Company or Trust and no mem
Ter of the Trust admitted into the ASsOcla-
ton being barred by the constitution ana rules.
The primary object OF the organization was 70
protect the members against the standard vi
Company.
Tie transportation lines. witness said, origi-
naly carried the OIL by system OF pipes to the
railroads but latteEly nearly all Of the OIL was
carried by pipe lines TO New-l Ork. Phlladei pima,
Baltimore, Pttsburg and Cleveland The OIL;
except N a few instances, was not delivered
except at the termlni The Standard Oh Com
pany threw every possible obstacle IN the way
OF Ile OIL reaching the railroads or getung where
an independent concern could secure 1t. The
producers were defeated in their attempts 10
secure legislation at the han Is " Jhe PecnsylVa-
Ma Legislature, and then formed this organIza-
ton.
After a great many plans and schemes had been
Produced said the witness, IL deemed best TO
meet the Standard and see What they could do
before they went INTO fight. A committee was
appointed and negotiations were conducted at
Saratoga and Niagara, which resulted III an agree
men being signed between the Association and the
Standard in September last. The Standard said |
tlat until the old stocks of oil could be got rid
Of The producers could not hope TO get fair price
Tor their OIL
A contract was finally entered into by the ne
eonatorS. There were about $1,000, 600 barrels |
OF crude oil on hand at that time. After some time
The Standard people said they had only 0, 100000
barrels OF this oil and agreed TO give up half of /
u at 81 cents the market price. The producers /
agreed TO reduce production 1900 barrels day. |
In case they carried out this agreement for one |
year the oil which held on their account /
was TO be sold and the profits given TO the Pro
npcerS ASSOCIATION, to be distributed 10 each in
alVlHual producer IN proportion to the amount Of
nj ne haI smut IN, that u.s. his reduced pro-
ucuon or that 5000 600 barrels. one million
;'as Immediately set aside for the benefit Of the
a n
another million barrels were secured from Tho
Standard for Che benefit Of labor We thought
continued witness, we could wiring another
milhon ont Of the Standard for that purnose and
we went 70 work and did it D'
keSuming. witness said that the reduction in
production was secnred by means Of voluntary
signing Of individual contracts
The amount Of oil on hand had been rndncod |
10 26 mo 900 barrels on the first Of April Tho !
ayerage daily reduction Of production since the
contract went into erect IN November last had
hccn about % 600 barrels.
REPRESENTATIVE Smith asked if witness had really
,rhonght be could. by legislative enactment OF
PennsYlvdnla. compel the Standard Oil Company
10 carry oil 20 everybody.
The witness replied Z" Yes, we were suckers
enough 10 think IT, I certainly thought they |
should regulate monster they had created
To question 70 where exorbirqnt rates
OF transportation finally lodged whether npon !
,,he producer or consumer. witness said he had /
De,n paying the pper for the last few years
=. hepresentatiye Smith-Would il be a benefit |
II these pipg lines were owned by the State >
as"erm5 w1uld be great benefit The coll
would be fixed by the law Of supply and demand
James K Golds2orough, Of Bradford Secretary
y me PrGlHcers Protective Association testified
Union ass, 900 since the agreement ,yos $3.50
Mr. MIX was recalled and asked II there had
esen any difference between the producers and the
replied: i"o "'O"ess
=, Not officially We understood we vvero N ba,,o
THEIR aid and assistance in advancing nrices hnt
we don't seem 10 have got it, After tbe dro,,
IN OIL last week ] called on Mr.. Brewster and beI
conference. Mr.. Brewster is a vice nreSidant
put don't know whether il is Of the big fbing
the nttle thing one Of the other things D.
nnE E o.! was selling at 3-4 cents per gallon
Vh tlat basis we understood were Ia Cot o.
cents and 4 had gone down TO 49, Mr. Rreys,oo
sIIa there bad been no change in the markers of
,e "9rd that he could hold up the price of ro
s snad out could not hold up the price of crude
'hp would not try Co." N''
representative Buchanan-Hc spoke Of his abil-