New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-04-19
4 NATURAL GAS TRUST.
ALLEGED INTENTIONS OF THE STANDARD
OIL COMPANY.

PROPOSING TO COMBINE THE GAS COMPANIES
INTO COMBINATION WITH A CAPITAL OF
FIFTEEN MILLION DOLLARs-NEws
FROM THE OIL REGIONS.
Pittsburg, April 1s Cspecial).-The Standard Oil Com
pany Is said TO be after the natural gas plants also
big Independent oil pipe line TO the seaboard, and 1t
has forced the price OF crude petroleum down TO such
a low point 80 a barrel that the Independent
producers talking of a shutdown for five months
beginning May /. The irst-named scheme tho
absorption Of the leading natural gas companies Of
Western Pennsylvania, and their amalgamation into
gigantic trust, the ultimate Idea being to supply q
manufactured fuel gas. The Standard Oil Company Is
SAID to be the OF process, invented by London
chemist. that has been fully tested aud pronounced
success. The idea IS to make the Philadelphia-the
original natural g1s company Of the world, and Of
which George Westinghouse Is presdent-the nucleus
OF the trust, and double Its stock, making a total
capitalization OF $150O0O00 which, 1t Is said, Will
be more than sufficient TO carry the scheme through.
The companies to be absorbed and their capital stock
as follows: Philadelphia Company. 81 100000 ::
Charters Valley Gas Company 23,000,OO0; Brdgewater
Gas Company. 81 291 900; Peoples Natural Gas Com
pany, Sl,000O0O; Peoples Natural Gas and
ripage Company, $5OO,O Manufacturers Gas Com
pany, 100000; Allegheny Heating Company, $780,
c00 Ohi0 Valley Gas Company, 100000; Pennsyl-
vaBia Gas Company, 81 900 900 total nine companies
with Il capital Of S15.521 600.
But these plants are now selling on the following
basis Philadelphia Company, s2,775OOO; CHARTERS,
49, 1000; Brldgewater S5664O; Peoples, 200, 900 ;
Peoples I1peage. 100000; Manufacturers, 1924 900
Allegheny Heating, 100000; Ohio Valley So 900 :
Pennsylvania 100000; total 1892, $40, or a shrink
age of Sl0,G2s 800 capitalization Of $4,000 600
would be sufficient to absorb these stocks, besides pro-
vding for bonds outstanding.
Besides owning the process referred TO- the Standard
oil Company controls very valuable natural gas
territory and is in better position TO operate with
natural gas as long possible than any of the
companies named. The ppe, OF all these lines are
30 intcrwOven as to make the operation Of them a.
one Zig line very easy matter. The plants men
toned have all been Inspected by Standard agents.
The attention OF Httsburgcrs recently drawn
10 the fuel gas question by the statement OF Fred
+. SaWard before the NcwYOrb Leg.lative Committee
Investigating the Reading deal Mr.. saward made
the remarkable assertion that manufactured ga. IS
now being mixed and forced into the pipes in PtsLurg
with the natural fluid from the earth. There WIS
prompt denial by the officials Of the Philadelphia com
pany, who laughed at the do1. Mr. westinghouse.
With his experimental plant here. dcmon- trated that
fuel gas could he made but it, economic consumption
is far fOm being solved. The greatest difficulty
experienced in trying to pipe the stuff. How
ever. Philadelphia Company official some time ago
threw ont the hint that last they had in
view scheme to produce gas from Lima OIL The
Standard O.l Company savs that this filthy fluid will
make excellent fuel. and Il have this in view
when It studies the advi,ability OF attempting to
corner the business Of supplying the cities Of PittJ-
burg and Allegheny with natural gas, substituting
fuel when the natural one has been
exhausted. The standard OIL Company controls the
Lima oil field.
Tho saward story suggested interview with
John K. Mckinley OF the Allegheny Heating Company,
who sd Manufactured gas costs 81 per 1000
cubic feet, while natural be had for 20 cents,
II would not be good policy TO mix the two. because
the natural requires mixture of twice as much air
as does the artificial To make perfect combustion.
Then again the natural pressure ranges from three
ounces three pounds. while the artificial pressure
Is only half ounce. Who're fuel gas Is made and
used on the spot the result is satisfactory but 1t
is not as cheap natural gas. Calvin Wells and
other iron and steel manufacturers Use fuel gas. but
they prefer the natural II they could get IL. Mr..
W~ tnghou>e laid a pipe from his south side ex-
station 10 A. W. ByerS's Iron mill. The
fuel gas made and Mr.. Bye-s used IT, hut II was
too expensive As compared with COAL and II was
abandoned. The problem is TO pipe II. Considerable
noney Is squandcred in refining artificial Gls. The
ar and obnoxious ingredients NUT be eradicated or
n "A short time the pipes would be chok"d up. Be
Sdc,. unrcfncd gas IS very poisonous. injurious to
the health. and very dangerous fo. consumption In
private houses, am not OF those who believe
that natural gas is about TO De exhausted. think
We will have IL for many years Ia come. Where the
If, operations are - extensive and success ful there
i, ,ufr 10 be natural gaS. asked superintendent
ieorsc Browne. of the Philadelphia Company. how
many we'll, he had drilling in 'wildcat;ne' lcXen
ncnt, I'm advance of the field during the year lie
>,pliri very few. He said he found II cheaper to
ii around and buy natural ggls wells from searcheTs
lftcr oil
The independent pip, line which the standard Is
aid 10 de irr 10 cobblc l. almost completed from
he Mcdonald oil Held, in this county, to Linwood. on
n. Delaware. a few miles below Philadelphia II Is
lrinc.pan7 owned by W. L. Mellon. the millionaire
III II, r, Ane i'm existence. The Independent producers
,clrvc that the standard will purchase the line. and
hey expect 10 pay for It indirectly in the decreased
JTlCc ~ Grade OIL.
tcr 100 producer, I'm tho oil fields OF Pennsylvania,
)hIo and West Virginia have already signed an asIce
ncnt = suspend operations for nve months DeHhhing
Way l. There are 100 producing wells In tie NC
RE National Transit people have 100000 bar
el, ~ empty tnnkag" in the ned ana are rapidly
training the empty tanks. The ind pendent prodncerS
,ayr agents I'm every field wording behalf OF the |
hutloVn. The terms Of the agreement are not TO be |
nd,n, uplcs, majority Of the operators enter into H.
,iqducing companic, Of the standard. HIS head |
lnartcr, will be in New York. The three large pro |
Gcne companies oi the standard are the ONO. s9nli
'enn and Forest. II Il likely that the other produc-
ny compnie, win be merged into these three.
Tie bradford oil field is almost dead. There Is |
ardly a string OF tools running anywhere either In
caniur oni old well, or i'm drilling ones. Many
ncn who counted themselves wealthy in estimating
heir properties upon values prevailing two years ago
low consider themselves poor
4 DrFiULTIyG TREASURER DECLARED INSANE.
Charleston s. G.. April Is (Specal.- Robert +.