The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-08-21
Fight on John D. 8 Oil.
Trust Rapidly Taking
Shape.
ARE aORGANIZING
Producers, Who Are Back OF
Hostile Movement, Believe
They Can Win Battle With
Giant M oInIo,poly and
Pocket Profits It Now
Takes From Them.
to The Times-Dispatch.l

~ g dhCSE HIOIIl 1sIISIll.
Especial to The -Dispatch.l
Butler. Pa, August ga gigantic
struggle between the 5000 oil pro-
iducers in the Pennsylvania fields. rep
resenting daily production OF 10000
barrels high grade crude oil, and the
Standard Oil Company was foreshad-
owed this week when producers from,
Washington. Allegheny. Butler. Grail
on. venange, Armstrong. Warren. For
est and Mexican counties launched
the High Grade Oil Refinery Company
as sequel of the movement which
has as Its slogan Producers. refine!
your own OIL"
Strongly organized and encouraged.
by ready support. the leaders OF the
high grade fields adopted a plan OF
Organization at meeting held In But
.ler. Directors will be chosen at 4
meeting to be held in the company's
office Pittsburg, on August %.
At once that meeting corps
of agents will sweep over the oil helds,
lie up production and receive subscrip-
lions to the common and preferred
stock.
The company is capitalized at &c.,
100000 of this s500o,0o0 is preferred
and ;5.ooo.0oo common stock. me ,1
company proposes to buy rehnerle -
and pipe lines OF the independ ents u
they win sell. and II not. to erect one
or more rehneries and lay pipe mes
Plans OF Insurgents.
nronnseS TO nav 81 a
barrel for oil. or this. cash Is to
be paid to the amount of the market
price. as fixed by the National Transit
Company. with is cents added as q.
premium The balance of the -
barrel or more shall be paid in COM
mon stock. Each producer shall re-
ceive four shares. $500, in common
stock for each barrel OF daily produc'-- !.
ton contracted for. To arm them
selves against attack by the Standard,
the promoters provide that the stock.
holders shall pool their stock ana vest
the voting power in Ave trustees to
be elected for a period of at least ten
years. With this provision 1t Will be.
impossible for the Standard to control
the concern by buying majority OF
the stock, and the only way the COM
pany could be attacked Is by bribing
the trustees. This is the general plan
on which the Pure Oil Company. at the
head of which Is Lewis Emery, J r..
OF Bradford and Thomas w. Philips,
OF New Castle, was formed about nine
years ago.
standard Oil agents who are throw
ing cold water on the oil field insur-
3pency declare the Standard would
raise the price of crude in the high
grade field to fctitious figure. after
the producers had their millions In
vested. and crush them. To fortify
themselves against this mode OF at
tack the hackers of the High-Grade
OIL Refining Company propose to obs
tain iron-clad contracts for period
OF ten or fifteen years a Sc per barrel.
subject to an increase BY action OF
the directors should the actual value
OF high grade oil go above that figure.
Should the Standard Oil Company
control 10 per cent. OF the production
and the producers 90 per cent. the foes
of the Standard believe they could hold
ont against the Standards efforts toll
crush them.
The uprising, which finds expression
in the determination Of producers to
refine their own oil. is the result of
growing Indignation against the arbi-
trary action Of the Standard in cutting
the price of Pennsylvania oil from
SITS to- $1.30 IN one year
RobbinR Producers.
The producers declare there Is profit
OF from o to 60 per cent In refining
oil at s1.7s barrel. and that the
standard is arbitrarily taking the ad-
ditional s25 per cent, which is saved
In the price of crude, taking 1t out
Of the pockets Of the producer. They
have figured out that refining profit
with oil at $1.30 a barrel is near 4 s.
per cent. They pr oppose to give the
profits to the producer in hes$price
paid for crude, and to cut down pipe
line and refinery margins.
1t is semi of1cially stated that the
new producers movement has; already
ing Of independent reflneries and pipe.
line companies, the Yalvoline OH
Company, with re1neries at Butler
Warren, Pa. and Edgewater, NJ, j. !;
the Pure OIL Company, with pipe lines
all&over this section in the name Of I
The Producers and Refiners' Oilt Com
pany,& and large 8ref1neries at Bradford.
and at least q dozen other refineries.
Options have been ia ken on a few
small reflnertes.
Z In some quarterssit5is said that the /
Pure Oil Company5is In sympathy with
the movement. The claim is made |
dllhIG Ol34slll6 LOCK
The Purt OIL Company has cen taken
up by the Standard and that there8mays|
be troubl LET or the company when the
period t. trust eship expires in a year
or5 tWo.sS g3SS a # i, 5.3
Leaders In tht struggle with the
Standard ARE AT torneyi AZ. M, Christie
Ind N. g. Nice Tough ii But Ter; Ca
ain y Is Hal ght and JOSEF h a. Shon-S
1eld, of Warren, II az
Former Senator lying.
United st States sen nat ss WiiKinson
lome here to- the Emerg ency III ospltalt
o-dayt In an llnco scious and appar-
ntly5dy wing condl II lon Fl g tis seventy
i ars; ole " Wa +
,sli s4s.4O TO CALIFORNIA,
Irlzona I and New Mexico VI Ia Wash lnston-S
unset r QUITE Dates In August. SEP TENDER
nd Oct Sber, 4 hrop h Il S!oug Sleep! +
ars lpersonAl conc uc ,s hart ~. 00, II
ARR C1NsS d. go H.. Ain ST. II