Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-06-04
of the Standard Oil Company.

of the Standard Oil Company.
At first it was thought the proper thing
to indulge in open hostilities, and fight
that big concern in the courts of law. That
idea, however, did not meet with the views
of the majority of cool-headed ones, who
predicted long and costly fights in court,
with no benefit to the producer They say
the only successful way to fight the Standard
was to use its own weapons by forming a
rival combination. Their idea was to enter
the field as leasers, producers, shippers and
finally refners of oil. The men with this
idea have been talking of it for long time,
and gradually, one by one, they won over to
their views the majority of the members of
the Producers Protective Association.
Preparing for Active Competition.
Finally the present convention was called,
in order to get the best Independent inter-
ests together and put the scheme of compe-
tition into practical shape. Every local
assembly in Pennsylvania and New York
is represented here, and the proceedings of
the convention up to date have been very
harmonious
Hon. J. W. Lee, of Franklin, was elected
presiding officer, and the various committees
on organizations, etc., are hard at work.
Two quiet sessions of organization were held
were held to-day. There are, all told, 40
delegates in attendance, and they meet in
secret behind well-guarded doors at P. P. A.
Hall. As yet nothing but hints as to their
proceedings have leaked out.
Your correspondent is informed that the
convention will continue its work on the de-
tails of their intended combination until
the whole scheme is in working order, when
it will be put through at once. The scheme
that is now under consideration is to form
great company under the limited partner
ship laws of Pennsylvania. 1t will work
on the trust principle to great extent, and
the producers say they expect great things
from it.
AGrudge Against the Standard.
George II. Terry, of Oil City, and man
prominent in the movement, said to-day:
1.-THE Producers Protective Association is
stronger in numbers and in spirit than ever.
New members are daily coming in from all
over the field. Everything is working har-
and the producers express the
greatest confidence in the association"
In conversation with other members of
the association tonight it was learned that
the producers have never forgiven the
Standard Oil Company for the trick played
on them during the famous shutdown move |
ment. They now concede that they were |
hoodwinked, and that badly. They say |
they went into that movement in all good |
faith. expecting, of course, that a curtail- |
meut of production and decrease of stocks |
would cause an advance in price. They also |
expected benefits from the sale of the 5000, |
600 barrels of oil laid aside for their own use |
by the Standard.
To their surprise and disgust the whole |
scheme worked the other way, and they |
too late, that they had played right |
into the hands of the monopoly. They had |
curtailed production for year, with the re-
suit that many individuals were actually |
ruined, their wells either being flooded out |
by salt water or becoming non-productive |
on account of the long idleness, during |
which some independent neighbors had been |
all year and had taken their oil.
Where the Producers Were Fooled.
Then, when the 100000 barrels were to
be sold for the benefit of these men who had
their production, it was found that
The carving charges accruing to the Stand
ard had eaten up all the profits, and that the
Standard had bought them all for song
for not cent, in fact.
Then this was not the worst of it. The
shut down had run the enormous stocks of
Is, 100000 barrels down to paltry 10,0OO,-
200 or 12, ,O0O, 600, and producers expected, of
course, to see corresponding advance in
5he price of oil. They were amazed to find
instead of q higher price that oil went
lown, and after fuctuating for year, final
v landed at the nominal price of 20 cents,
ust 10 cents lower than the acknowledged |
average cost of producing one barrel of OIL
Here the price has remained until to-day,
md only lately have they learned why
essening in stock is not followed by cor
advance in price of product.
Where the Trust Had the Advantage.
'gThe reason is simply this" said your in
'ormant ''When the stocks were up in /
he 10000, 900 barrels the Standard could
not control the price of crude as they
wished. The New York Exchange CLIQUE
1ften carried it away out of their reach, and
mad it not been that they had it in their
power to issue immense amounts of certifi-
,ates, no matter what these certificates rep-
resented, the Standard would have been
crowded into hole long ago. AS it was.
heir oil and its price was at the mercy of
every exchange that desired to form bull
,r bear pool, and time and again have Pitts
,urg, Oil City or Bradford carried the price
lbout as they pleased.
"Well, after having their market played
With as long as they could stand it, the COM
,ination thought of some means by which
hey could get their stocks reduced to fig
Ire that would enable them to carry the
tocks themselves, and not depend on out
iders. Even the rich Standard Oil Com
,any found it impossible to buy 80, ,OOO. 600
,arrels of oil and lay it aside until used in
he form of refined, but if they could re-
luce the stocks to, say 10000, 900 or 12,OOO.-
100, then they could handle it themselves.
md, being the practical owners of all the
Ill, they could put their own price on it.
Opposition to the Shut Down.
There were some few who bitterly op- l.