The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1897-12-13

be used for the benefit Of the producers
and not for speculative purposes by the
tank owners. OF whom one-half or more
are trustees Of the Producers combina-
ton. and all Of whom have money to
speculate. then why in the name Of sense
should this $4,000 barrels be sold now at
% cents or at any price less than 81 per
| barrel?
DIR. Book was the first to fly the coop
on the dollar price. He signed the Rex
OIL company to the combinations agree
ment by himself as secretary and gen.
eral manager. but did not sign the Cot
tage Home Oil company, the Los An
geles OIL company, the w. p. Book Oil
company or the Highland Oil company,
In all Of which he is interested as part
owner.
"Then the Highland Oil company sold
the Redondo railroad 500 barrels of oil at
IS cents. An investigation followed by
the Producers trustees, of which body
DR.. Book was then a member. 1t was
found that the Highland Oil company,
which had sold the Oil at rs cents, had
no producing wells and was virtually
DR.. Book himself. Dr. Books resigna-
tion followed on the score of having too
much personal business to attend to the
duties Of trustee.
ION investigation, 1t transpired that
everybody who was violating the COM
bine's agreement had a foot-loose part
ner unbound by it except Tom Joyce,
who did business by himself. His ex-
cuse was that DR.. Book sold at cut
prices, and the trustees did not dare
proceed against him."
In reply to inquiry Saturday for news
of Oil transactions last week, Secretary
Strassburg Of the Producers trustees
said there was nothing of Importance
done during the week.
Asked about the sales of 30 900 barrels
at rs cents and 10000 at IS cents, he
said we don't report any such sales.
Told that the Standard Oil company did
not deny it, he explained that the Pro-
ducers' combine had taken the oil prod
uct at 40 cents, with a large surplus
over local demands, and had gradually.
by intelligent management, disposed of
the surplus at prices to meet the San
Francisco market and had steadily
raised the price till it was now possible
to get 81 per barrel for Oil.
Between 1000 and 5000 barrels were
disposed of at that price the past week."
he said, land having now disposed of
all surplus, we have no more to sell ex-
cept at 81 per barrel, and the trouble
will be to keep 1t from going to SLIPS per
barrel, but the trustees are also opposed
to that.
''As for the Oil Storage and Transpor-
tation company, owners of the new
tanks, using the tanks for storing oil
for speculation, we have even gone so
far as to offer to transfer the whole
storage plant to the Producers on pay
ment of our investment and a reasona-
BILE interest and charges for handling
the OIL"
B. Baruch, vice-president Of the Oil
Producers trustees, said: 1.-THE sale to
the Standard Oil company at rs cents
was made to get it out of the country,
as they will ship it to San Francisco,
and the sale Of 10000 barrels to the Santa
Fee at IS cents, which amounts to rs
cents at the wells, was made to get 1t
off the market, for our storage tanks
are not ready yet. We can now main
tain a price of a dollar per barrel"
There Is no truth in the rumor that
the new tanks will be used to store oil
for speculation. We have offered them
to the producers at cost to us. No. we
have not done this in written agree
ment, nor specified time limit in which
We would accent cost fo rthap,