The herald., 1896-01-21
They Hold a Consultation at the
Exchange
AN AGREEMENT PRESENTED
An EndeavOr 10 Be Made to Secure
Unity of Action
Contract Adopted to Be Signed Which VIII
Bind Signers for Ninety Days With
Privilege of Withdrawal Then

The oil men, owners and producers met
last evening, and if the program they out
lined along which they intend to proceed is
carried out, the results cannot help but be
of benefit to the great majority of the pro-
ducers. There is no question about it, for
1t is conceded ON all sides. The oil indus
try needs some bracing up, so that better
prices can be secured for the fluid. 1t is
also admitted on all sides that the only
way by which any effective results in this
direction can be accomplished is by unity
of action.
The meeting last evening was called by
the officers and members of the Oil ex-
change, and it was to and did include il its
attendance both members of the exchange
and producers who had never before seen
fit to sign the exchange agreement.
1t was in fact a mass meeting of the oil
producers. DR.. j. HI. Davisson was elected
to act ss chairman of the evening, and an
excellent presiding officer he made. Secre-
tary T. j. Cochrane, of the oil exchange,
officiated in that capacity for the meeting.
All told there were about sixty-five pro-
ducers present and there are in the field
about one hundred producers.
DR.. Davisson opened the proceedings by
brief statement as to the objects of the
gathering, which he said was to ascertain
the sentiment of producers as to what
COulU DC uOIlc 10 SeCuT0 u DGtt6r NrlCe lOr
oil.
Theu followed an informal discussion in
which a number of gentlemen joined.
After this an agreement or contract was
read which had been prepared by the exc
cutive committee of the exchange for sub
mission to the producers who attended the
meeting and to all others who had oil to
SELL
This agreement was made between the
oil exchange, as parties of the first part,
and the producers. who signed it as par
ties of the second part. In substance, the
parties of the second part agreed for a
period of 90 days to sell no oil produced or
obtained by them save to the parties of the
first part. The parties of the first part
also agreed to fulfill all contracts that the
parties of the second part now have on
hand, said contracts to be turned over to
the secretary of the Oil exchange for
record. All oil sold is to be divided pro
rata among those signing the agreement,
and the cost of selling the same is to be
taken out of the proceeds received from
sales. In this way the cost, which will be
reduced to minimum. will be divided pro
rata among those whose stufi is disposed of.
The agreement or contract as 1ead was
finally adopted as presented, although
there was quite feeling that the period by
which signers should be bound should be
extended to six months or even one year.
However, the contract as adopted is to run
III ptIpctuitys bib bigucfS dIO RlNcli tilt
privilege of Withdrawing at the end of 80
days if they see fit, by giving written mo-
tice.
The agreement was adopted without
one dissenting voice, and was signed
last evening by some forty pro.
ducers. A committee will present
the agreement to all the producers in the
field. The efforts to secure signatures will
be pushed. If seventy-tlve signatures can
be secured, it is believed that the move
ment will be a success.
1t was stated that $28OO in cash and
$480O in oil had been subs cribed to the
stock of the new tank steamer, which will
be completed in three week and then
shipments will be made by it to San Fran
cisco.
1t is believed that the effect of the move.
ment organized last evening will be to put
up the price of oil immed ately.
The daily output is now 1000 barrels
daily, of which 1900 barrels is consumed
here in Los Angeles.