The herald., 1895-08-10
Committee Returns From San
Francisco and Reports
A WIDE MARKET IS ASSURED
Transportation the Only Question to Be
Decided
Northern Capitalists viii b: in the Field In
a Few Days-A Proposition Submitted
to the Producers

O'Clock yesterday afternoon in the Office
OF the Combination Oil company. on
Omaha street. to hear tho report OF the
com mittee sent to San Francisco in the
interests of the local oil producers.
F.W.Flint, chairman OF the committee,
presented written report outlining the
work done. the main part OF which was
as follows:
The work OF the committee was cnarac-
terized by activity from first to last. The
first important move made was confer
ence with the Southern Pacific officials
Mr.. Smurr. the general freight agent.
gave rates on cars and price Of transport
alton. The committee urged the neces-
sity OF lower rate than that which was
previously offered namely. 81 cents per
barrel, but no satisfactory conclusion was
reached. The railroad company offered
to lease what cars it could and keep them
in repair.
General Manager OF the Road Fillmore
was next interviewed, and expressed him
self as favorable to using oil in all the SUBJ
urban lines about San Francisco and
this city.
The manager OF the Pacific Improve.
ment company offered to use oil fuel on
the San Francisco cable lines. providing
the producers would place six months
supply in storage tanks and make con.
tract to furnish stated amount for two
years. The amount that would be used
by the company was estimated at SO, 900
barrels per annum.
The electric roads OF San Francisco
would consume like amount.
Meetings were held with representa-.
tlvcs of the Pacific Coast Steamship COM
pany, Pacific Coast Oh company, Grace
& Co.. and several other comp anies, re.
garding transportation.
A definite proposition was offered by
one company. the details Of which will
be made known later.
One company offered ground for storage
tanks free OF charge, and promised to
use 30O barrels week in its own plant.
Other companies in the same vicinity
would use about the same quantity.
The -four, powder, electric lighting
and brick companies all gave encourag.
ing promises in case oil was brought to
the city.
AS far as the market is concerned, there
is no longer any doubt. The field is un-
limited, and can easily be controlled.
Coal men are the only competitors, the
strongest among them being the English
anthracite dealers, who furnish coal at
W per ton.- Coal capitalists are strong,
and many OF them hold contracts for a
number OF years.
In response to request from the Man.
nfactvrers' ana Producers' Association,
that a letter be written by the committee
comm unication outlining the situa-
tion was submitted which called Atten-
tiOn t. the general features of the oil IN.
dustry, its local character as opposed to
the foreign interests represented in the
coal business. the value of the oil as fuel
and its superiority over other materials,
the safetj in and the cleanliness result
ing from its use. cheapness and many
other points; finally stating that the only
thing lacking to give San Francisco
cheaper and better fuel was increased IA
cilities for transportation.
A similar letter was sent to the Halt
Million club, and upon invitation OF that
body Mr.. Burus made an address to the
club.
After having made these efforts it was
decided that nothing could be looked for
IN the way OF railroad transportation.
The Southern Pacific merely offered to
lease thirty or thirty-fve cars refusing
outright to put on any. special cars for
the shipment of oil alone. The commit
tee therefore came to the conclusion that
some means must be provided to shi ip oil
by water, which would necessitate the
OF, storage tanks at the sea-
board and the laying of a pipe line from
the field to the point of shipment. Nat
urally. such an arrangement affords no
i'm m ediate relief. 1t simply augments
the necessity Of the oil men holding to-
gether.
MIR. Flint then read communication
from wealthy capitalist, in which he
outlined proposition to erect storage
tanks ana lay pipe line to the sea and
put IN operation line of oil ships to San
Francisco. AS a part of such an arrange.
ment the projectors would have to re.
ceive guarantee Of an exclusive contract
covering stated period OF years.
The gentleman who submitted this
proposition will be in Los Angeles IN
couple OF weeks and desiies at that time
10 receive some offer fiom the oil pro.
1ucers.
r. H. Heron and others made strong
speeches advocating the extension of the
scope of the exchange and the necessity
of uniting for the purpose of dealing with
companies.
a COMMITTEES was appointed TO obtain
estimates Of the amount of oil each pro.
iucer would be willing to pledge toward
The amount required for bringing trans
company to the relief OF the
producers.
Immediate steps will be taken by the
toward placing the oil produc-
srs in position to deal with the mere