The herald., 1898-11-14
ANOTHER MOVE IN OIL
CIRCULAR LETTER SENT TO ALL
LOCAL PRODUCERS
Apparent Attempt to Rejuvenate the
Producers Trustees-Notes of
the Local Field

The Oil Storage and Transportation CON-
pany has issued the following circular letter
to each producer in the city:
We should be pleased to receive bid
from you to furnish us with from 300 to
5000 barrels of crude oil per month tor
a term of six or twelve months begin
ming January LIST, 1899; oil to be dellv-
vered by you to our storage tanks on
Bloom street and subject to gasoline
test for water and sediment; payments
to be made the 18th OF each month.
In making bid, state the amount OF oil
you propose TO deliver per month and
for how many months; also its specific
gravity and percentage of water and
sediment.
This letter was received by the producers
with varied expressions of opinion. One
we'll owner who had, early in the history OF
the producers trustees (of which the Stor-
age and Transportation company Is but an
adjunct) pulled out, regarded the missive
as e impertinence" This gentleman
left the trust because he saw outsiders get
ting better returns for their oil than the
members obtained. This view of the case
is shared by others and the consensus OF
opinion is that comparatively few OF the
letters will be favorably responded to. The
oil men seem to think that the scheme is an
attempt on the part of the trustees to main
tain the partial control OF the market which
they have had since their organization.
However, some producers think favorably
of the scheme. They are largely those who
do not care to hunt for market and would
be glad to have the responsibility and
bother of handling their production re-
moved
Some such move as this on the part of the
silent officials of the trust has been looked
for for some weeks past by the oil men. The
organization expires January 1st, 1899.
President Graves and Secretary Strasburg
are also officials of the Puente Oil company
and of the Storage and Transportation COM
pany, both of which organizations are deal
ers in oil. 1t is to their interest, plainly
enough to keep clutch of whatever monopoly
or means of monopoly they can. The Stor-
age and Transportation company sprung
into being from the oil producers trustees,
and now at the death of the company is to
inherit the latter's effects.
If alarge majority of the producers should
respond to the letter and place their produc-
tion with the company, then it would have
tue locdi lHdIheC virtually cOrHeTeu. Iuty
could place the price where they pleased,
within reasonable figure. The buying price
contracted for would have to be maintained
but the company's selling price might rise
indefinitely. In case it did rise land prices
now are constantly stiffening) then any
unfortunate producer who might have bid
a larger amount of oil than his production
warranted, in order. to hold his contract,
might have to buy oil at corner" price
and land himself in the hole. In order to
avoid this possibility the producer who
deals with the company will make his Bio
well within the limits of his capacity fol
supplying. These features are being widely
discussed by the producers.
Little is going on in the local field There
has sprung up with progress difference Of
opinion as to whether deepening of wells