Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-12-08
OUR MAIL POUCH.
Organization or Annihilation.

Organization or Annihilation.
To the Editor of The Dispatch:
A once powerful trade is drifting peacefully
on the current which is carrying it unresisted,
toward annihilation-the ship is heading
straight for the rocks in broad daylight.
To drop all figure, the forces that led to the
great shutdown movement of 1887 are more
powerful to-day than ever. but they seem to be
recognized only to be ignored. Whatever
benefits the producer received from that move
ment have completely disappeared, but short
lived as they have proved, they were well worth
all the labor and sacrifice involved in them, be-
cause they taught the producer the need and
the value of organization-a lesson he was slow
to learn, and which. sad to say, he seems to
have already forgotten.
A long continuance of excessive stocks led
to the shutdown. The men who organized it
believed that these stocks were the only OBJ
stacle standing between the producer and per-
manently better prices. The labor and sacri-
fee, the loyalty and patient work, that reduced
the stocks from 320O0OOO barrels to 1OO0O,000
barrels are matters of history. and the results
of the movement may be said to have
been operative uD to the present year, which ha
falsited every hope of the permanence of better
prices, and to-day the quotation is within 2cents
barrel OF that current at the time the shut
| down was ordered despite the fact that since
then 22,5O0 200 barrels have been wiped out, and
that the present stock of 9.5OO,OOO barrels is
scarcely equal TO four months consumption.
why, then, does the price continue to de-
cline? Why does the producer stand forth to the
| world only as man drifting steadily to ruin
without making any visible effort to stem the
| 'evil tide of circumstances" which carries him
| further and further away from prosperity?
| The answer to both of these questions is plain;
these evils are the result OF the lack of organ
ization-not organization simply in name but
| effective, comprehensive and aggressive organ
| lzatiOn, able to command the producers loyalty
| and respect by showing that IL has sufficient
strength to protect his interests, and ability to
| devise plans for his improvement. The great
| good accomplished by the Producers Pro-
| tective Association in the past entities it to
lasting respect, but as it exists at present. it may
| be said, without intending any otfense, that it
gives no sign of being aware of the crisis which
| is upon the oil trade; and if the noble spirits
who guided it in the past are from any cause de-
barred from leadership Dow, then let us hope
| that their mantles will fall on others equally
| capable and courageous, who will rouse the oil
| producers from their lethargy, and, recognz-
| ing existing dangers, have wisdom to devise a
remedy and courage to put 1t into execution.
These are days when nothing is so effective
| as organization, and when nothing can succeed
| without it. Whatever need there was in 1887
| for Producers Association there is four
| fold greater need to-day. Precisely ten months
| ago oil was selling at 81 o715; now, with 750,-
OOO barrels less stock the price is 649sc and the
| next week may see it 60 CENTS or the next
| month 80 cents. so far as the producer is coz
cerned for he is utterly without voice as to the
value of his own property. Organization says
what price it will pay him. and for the past ten
months it has elected to pay him just trife
| less for every fresh purchase, and if tomorrow
| Organization should say to him that they had
decided upon an infexible price, and that price
| to be 25 cents barrel. the producer would have
no more power to get 26 cents than he has to-day
| to get 70 cents. and as a consequence he would
keep on drilling, if he could do it on credit, and
sell his oil at the Organization figure of % cents
! a barrel. This hypothesis is perhaps trile
strained, but it is nevertheless directly IN line
| with existing facts and is position which
could as a matter of fact be brought about any
| day. and all the producers from Allegheny to
Marietta could not prevent 1t in their present
| unorganized helplessness.
All talk of new and independent pipe lines and
| rehneries as cure for the present ills IS to be
| deprecated; even If practicable, any help from
1t would be too remote. and as to shipping oil
| to Europe by way of Mississippi river, the
| scheme might be worthy of a smile if the sub
| ject itself were less painful.
The only remedy for present ills, and pre-
Ventlve OF even worse in the future, ID through
| organization headed by able and honest men,
| to be followed by the entire stoppage of new
work for at least three months. and the placing
OF all production in the hands of the Executive
| Committee for sale. An organized buyer will
| then be met by an organized seller, who shall
rot only be factor in the bargain, but shall
commody shall be produced. Some such plan
as this will change the aspect of affairs, and
unless it is adopted speedily the producers had
ssd sPPtS spPSS at 9nee the MGTts
|
for figure to sell out upon, and
with the market in the present shape. they will
| probably find that their voice has no more
| potence in making prices for oil territory than
| 1t has determining the value of the oil itself.
| Producers and gentlemenl The Standard
! Oil Company have shown you the virtues of
| capitalization and cohesion. Initiate their ex-
ample and do it promptly, if you are at all de-
| sirous of continuing In the business. You cut
down the new work in the field 20 per cent, or
| nearly so. last month, but although you could
sell your product in the exchanges at SOC a
barrel in the early part of the month, you can
! not get Csc on December at the close of the
market. You may repeat the 20 per cent de-
| cline in new work this month, and by the same
method of figuring have to take SOC for your
| oil 80 days hence. This is the precise
| ratio for the past 80 days, and it is logical to
| suppose that like causes will again produce
| like results; the compression process has
| brought the market down 43 cents a barrel in
ten months, and you have made no resistance
| and uttered audible protest. AS conse-
| quence there is every probability that such
| pretty and unopposed game will be played for
| some time longer. in fact it is almost certain.
Producers and gentlemen! The remedy for
| your ills is within your grasp. If you decline
to use it you simply invite disaster, and such
invitations are generally accepted.
ORGANIZER.
OIL CITY, PA, Dec Q, 1890.