New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-01-25
EXTENDING THE TIME ON CALI OIL TO JULY
AND GUARANTEEING PROFITS

AND GUARANTEEING PROFITS
For several days tho petroleum trade has been ex-
cited over the possible results OF the conference
which had been arranged between the representatives
OF the Standard OIL interests and the organized New
York and Pennsylvania producers 20 taxa place I'm
this city. For long time tho speculative exchanges
have been suffering depression, and the bear party
have been using with effect the dread that st any
moment the oil credited TO the producers who
shut In their production last year would be thrown
upon market bereft Of the support Of either largo
outside public interest OF the refining interest
The shut-in agreement went into effect on November
!, 1887 and lasted according contract year.
previous agreement to curtan drilling had been
made, which expired on September 8, 1883. To
recompense the organized producers for the loss of
their production during the period of the shutin the
Standard agreed to set aside 10000 barrels of oil
at So cents TO be delivered call at the end of the
contract, with the cost Of carrying added. OF this
amount the producers have sold 100000 barrels,
leaving 100000 barrels remaining TO their credit
The Standard extended the time Of the call last
autumn to March i, 1889, and when the market had
advanced into the nneies last December the secret
selling OF part of the producers oil caused sharp
break. Since that time negotiations have been going
on looking 10 a new contract between the two In
terests In the trade.
These negotiations eliminated yesterday In
harmonious agreement, which beied many OF the
newspaper reports of serious rupture between
the two parties. preliminary conference was held
at the Fifth Avenue Hotel between representatives
Of the two branches of the producing fnterest-the
we-owners who are members of the secret Producers
Protective Association and the weowners who are
not members but who co-operated IN carrying out the
shutdown movement Subsequently another confer
held in the Standard Oil Company's build
ing No. % Broadway. There were present In be-
half Of the Standard interests John ID. Archpoh'
Fl. r. Rogers and James McGhee The executive
committee of the Producers Protective Association
was represented by Thomas W. Phillips, Of Newcastle,
Penn, the chairman; John L. Mckinney, OF Titus
vile, Penn. ; Noah F. Clark. OF OIL City, Penn. j. r.
Goldsborough, Of Bradford Penn. John Hall, OF
Buffalo, N. ", for the Union OIL Company and
Colonel Scott, Of WelBville, N. Y The advisory
committee were represented by W. J. Young, Of OIL
City, Penn, and L. II. Smith, Of all olldom formerly
president Of the New-York Petroleum Exchange. The
conference said TO have been In every respect
satisfactory and harmonious" An agreement was
reached by which the Standard extended the time Of
the call to July 1 on the 100000 barrels Of
reserve" oil now unsold. The Standard Oh Com
pany also agreed to guarantee that it would, at that
date, accept any part Of this reserve oil which
might remain unsoh at net profit 10 the pro-
ducers OF not under five cents per
barrel Tho carrying Of the oil IS, Of course continued
by the Standard and the producers are at liberty 70
sell their reserve oil II they choose to. AS matter
Of fact the storage and interest charges on this oil from
November l, 1857, TO July l, 1889, Will bring the
cost to the producers up about So cents per barrel
net profit Of o cents TO the producers would seem to
guarantee 80 cents 10 the producers ON July Leaving
over Eve months open for the continued decrease OF
socs above ground which Is now going on, by reason
OF the Of the daily consumption over the output
at the rate OF zoo, 600 to 100000 barrels month
The market at the Consolidated Exchange closed
before the news became public. Last official sales
we're made at s5 80 certs. The producers who
learned of the new agreement last night were ex-
hlarated at the prospect OF better values for their
deals Now that this bundle of oil Is practically
out OF the way declared one big weltowner, /
haven't got any OIL 70 sell under dollar"