The Bakersfield Californian from Bakersfield, California on October 15, 1908 · Page 24
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The Bakersfield Californian from Bakersfield, California · Page 24

Bakersfield, California
Issue Date:
Thursday, October 15, 1908
Page 24
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THE OIL AND INDUSTRIAL EDITION Vol. XX. .BAKERSFIELD, KERN COUNTY. CALIFORNIA, THURSDAY, OCTOBER 15, 1908. No. 62 INDEPENDENT PRODUCERS AGENCY An Organization That has Made Sixty-Cent Oil Possible The Story of How it Was Done— The Men That Gave Their Time and Money to the Accomplishment of the Great End—The Value of the Oil Produced Increased to $12,000,000 a Year. From the day that the first oil well came In with its flood of wealth, up to the present hour, there has been one continuous battle between tie producers and the big oil marketing corporations, brought on by the desire on the part of the purchasing corporations to buy the product as low as possible and a determination on the' part of the producers to enjoy at least a small part of the great wealth that mother earth was so generously pouring into the laps of her children. with the purchasing corporations and the result was a contract made with the Associated Oil Company, dated Dec. 20, 1904, which provided for the delivery of 7000 barrels of oil per day for a period -of one year, (contract ending Dec. 3J, 1905) at 18 cents per barrel. Thus the first skirmish ended In a victory (?) for the agency. They secured 18 cents per barrel for oil that was worth $1. But the officers did the best they could under the circumstances. It was the first round and they went into the fight weak. Under the" further terms of this contract the agency was to store in storage tanks furnished by the Associated OH Company any amount of oil that they might produce In excess of the 7000 barrels per day, or 2,556,000 barrels for the entire period covered in the contract About the time this contract was executed the Associated OH Company secured control of the Salt Lake field which was producing abort 6000 barrels per day. This cut the Southern ' f*a1l tr\r*n In mnwlmt m«* —.* AV.1~ A_l.s In the flrst few years the large oil California market out of •' i this field with the result that all of the oil the Associated bought from the Independent Agency during the year ending sible and for the flrst time they were i met by men that were just as determined that the producers should have a fair price for their product, and these men won out. How many of our | citizens appreciate the full slgnifl- men on the board of directors who cance of this victory. The total oil •| felt and knew that the producers should be receiving at least 7& cents per barrel for the oil, but their voices were drowned by the clamor made by those men that knew that the producers were at the mercy of the purchasing corporations. Or at least they pretended to know this and they influenced enough of the board so that purchasing bodies had much the best of it, and notwithstanding the fact that ns year followed year the- consumption of oil grew greater and price to the consumer Increased, yet the price paid J;o the Kern county producer each year found a little lower level. Just prior to 1904, and for a few months of that year, the price had been 15 and 20 cents per barrel, but this was not low enough so another level was sought and the price was reduced to H 2-3 cents per bar- rell. At last tho price had got down to a point where the well could not be pumped at a profit, and a meeting of the producers was called to canvass the situation. The meeting was held and the subject was talked over. The fellow was there that was sure that the Kern county producers could do nothing against tho great purchasing | corporations, so the meeting adjourn- \ ed without having done anything. But f W. D. Young and others were determined that something should be done and meeting followed meeting until at last the Independent Oil Producers Agency was organized. The objects of the organization as set forth in the preamble to Its by-lows are: "To secure a stronger and more stable market tor oil produced in the elate of California, by selling through a common agency the product of many oil producing properties. Thus enabling this corporation to make contracts for the delivery of oil In large quantities and over extended j This board elected officers to serve periods of time. . . To enable the for one year as folows: Wm. Ellery, owners of small oil properties to gain | president; T. Spellacy and T. Early, by so-operatlon with other oil producers the full advantage of the local oil market and all the benefits arising from a central organization, having knowledge of the conditions of the market and having nn Interest in the sustaining and supporting of the oil producing Industry." The articles of Incorporation were prepared and signed on the 21st day of October, 1904. Thus In three months after the price had been reduced an army of thirty-five men engaged In the production of oil or Interested In oil lands had been organized to fight the fight that meant industrial freedom to the oil men of the county. The flrst meeting of the stockholders was held at the New Southern Hotel In Bukersfleld, November 3, 1904. Col. T. Spellacy was chairman of this meeting and W. D. Young acted as secretary. At this meeting a board of directors was elect on the 23rd day of November, 1906, a contract was entered Into with the Associated OH Co. providing that the Agency should deliver to them 7000 barrels per day for one year at 27% cents per barrel, and turn over the oil in storage amounting to about 1.000,000 barrels, at 25 cents per barrel. The Agency returned to Its member $5000 which had accumulated in the treasury from the half cent per barrel which had been appropriated for the expenses of the association. By April, 1907, a spirit had been 'awakened among the producers. At this time the membership consisted of 22 producing members, and at the annual meeting It was noticed by the most .casual observer that there was going to be something doing. At this meeting L. P. St. Clalr was made president; F. N. Scofleld, James F. Kerr, and T. Spellacy, vice presidents; W. B. Robb, secretary, and Dr. Llscomb, treasurer, In November, 1907, the 27% cent contract expired and it was up to the new executive officers to make good and they at once began the work. Through December and January and up Into February the battle waged; 75 cent oil was the battle cry product of this county at the present time is, in round numbers, at the rate of 20,000,000 barrels annually. These 20,000,000 barrels at 11% cents would produce, In round numbers, about $2,350,000. At GOV4 cents per barrel these 20,000,000 barrels produce over $12,000,000, or an excess of nearly $10,i 000,000 annually in favor of the new price. This is not nearly all of the story. 80 far as our business men are concerned. Under the old price oil prpductlon was stopping. No new wells were being sunk, and the wells OIL COMPANY Pioneer Oil Purchasing Company of The State A great oil corporation that has been closely Identified with the oil development of California—Handles about 25 per cent of the oil produced that were down wore plugged in many \ in the state. instances. Now, every producing! i n 1883 a crowd of Penusylvaniaus company In the field has from one torcame to California and began oil op- six rigs running, sinking new wells,' old properties are being put back Into production and every thing Is active and full of life that was but a few months ago shrivelling up and dying, under the baneful Influence of corporate greed. These men: L. P. St. Clair, W. B. Robb, F. N. Schofleld, James T. Kerr, T. Spellacy, Dr. Llscomb, did the work and their names should never be forgotten in this community. The Agency now Is strong, new members have come In until there are very few producers outside of the Associated, Standard, S. P. and Santa Fe companies, that are not members. Mr. Robb has his office In the Kern River field, where the Interests of the producers are strictly guarded. eratlons in the Peco canyon. In 1890 these interests were Lyman Stewart into organized the Union by Oil Company. The object of this organization was to put these Pennsylvania producers In a position to make con- trats to supply oil over long periods of time and to be able to deliver the 500 barrels capacity; the Lansing, 50,000 barrels capacity; the Argyll, 30,000 barrels capacity; the Roma, 29,000 barrels capacity; the Wash- ternan, 29,ouo barrels capacity; the Whittler, 11,000 barrels capacity; the barkentine Fullerton, 16,000 barrels capacity; the ship Santa Paula, 6,000 uarrvto capacity. Tho Union has pipe lines as follows: From the Santa Maria field to Port Harford; from the Ventura Held to San Buena Ventura; from the Orange and Los Angeles County fields to San Pedro; and the great same to the consumer without de-1 Panama pipe line, coneetlng the At- pending on rival corporations. Pipe lines were at once laid to the coaat and steamships to transport their product were purchased, and the Union Oil Company was ready for business. From the flrst the equipment of this company was the best of any oil company in the state, and the passing years and advent of new oil companies In the various fields have not in the least changed this condition. The Union today stands first i and handles about one-fourth of the oil product of the state.- The company began to branch out just after Its formation. They began operations In Ventura County, then in the Fui ierton fields, then in the Los Angeles city fields, onr! when oil was discovered In Kom County the Union Oil Company was hero In the Greeti- WhiUler Oil Company. Tho holdings jf this compiiny were acquired by lie Associated niul the Union Oil Company's interest, in the Green-Whitlor Company is reprseuted by the Associated securities it holds. Tho Union Oil Company, us before stated, has always led the procession and the management of the company has left nothing undone tho Joing of which would give the company an advantage on expedltiously and economically handling tho oil of- i'ered by others or produced by them- lantle and Pacific oceans. The company maintains export stations at San Francisco, Oleum, Port Harford, Ventura ana san Pedro. The company has recently increased its capital stock from $10,1)00,000 to 150,000,000. It has always been the company's policy to keep Its capital sufficiently large la do anything that was necessary In either the producing or purchasing end of the business, and In furtherance of this policy, that has made the Union what it is, the recent increase in tho capital stock waa decided upon. The interests of the Union Oil Company in the Kern County flekl Is represented by the Clairmont Company, which is owned by the Union. This piece of property has fourteen wells and is producing 311,1100 barrels per month. Tho Union Oi! Company controls tiio product of 250,000 acres of oil lands and their holdings are In eleven counties of this state. Their strongest fields are In Santa Barbara and Orange Counties, although they are also very strong In Los Angeles County and produce in every oil producing county In the state. Tho last sale of stock of this company $230 fur a $100 share. Their business Is growing with each day. It is growing by» its own 1m- MOUNTAIN SCENE NEAR BAKERSFIELD selves. Today- the company has its'petus. As oil production Increases head offices at Oleum on the San j in the state, the Union Oil Company Pablo Bay and branches In San Francisco, Stockton, Oakland and San and at Oregon, Jose In this state, and at Portland and Astoria in Oregon, Seattle, Washington, New York City, Chicago, Oec. 31st. of 1905, was stored. At the regular annual meeting of the stockholders which occurred In April, 1905, the directory was reduced to 19 members and a new board composed of that number, was elected per contract, oil that' had until been vice presidents; H. Llscomb, secretary; W. B. Robb, treasurer. Of course the 18 cent price continued under this management, us Dec. 31st. The purchased was stored and It looked as If there would be no market for the oil. Of course this was the impression the purchasing corporations wished to make. The Agency sold spot oil for some months. This spot oil brought 20 cents per barrel. This condition continued through the winter, spring and summer of 1900. In April, 1906, at the annual meeting of the stockholders the board directors elected the same officers that had served from April, 1905, with the exception that Mr. Rohb was made secertary; Mr. Llscomb, treasurer and Mr. F. N. Schofleld's name was added to the list of vice presidents, making three Instead of two as formerly. Dur- Ins the summer and fnll of 1906, sev- were secured of the Agency and the purchasing corporations were for any price under that figure that they could secure; 30c, 35c, 40c, 50c and 5S» cents were offered and the members began glam- oring for a contract to be close'8 at these figures, -which looked large to them, but the men whom the directors had empowered, sat steady In the boat and demanded 75 cents. These men had posted themselves on oil conditions and knew that tfle purchasing corporations would have to come to their figures. The clamoring on the part of the producers grew so loud AN OUTLAW SHOT TO DEATH BY A POSSE. A dispatch from Auburn says J. P. Oarred, who on Sunday evening shot and wounded Louis Faller and his wifp, Bertha, at Dutch Flat, was riddled with bullets this afternoon by a posse, which was out In the brush looking for him, and upon whom he opened flre from an old ditch. On Sunday evening Oarred fired upon Mr. and Mrs. Faller. shooting Mrs. Faller through the hip and Fal lor through the hand. Early this morning Sheriff George MrCauly and Deputy Sheriff Gum I Honolulu, Panama, Valparaiso, Taltal * and Tocopilla In Chill. They have refineries at Oleum and at Bakersfleld, California. They _have In steamship equipment the Santa Maria, 52,500 barrels capacity; the Santa Rita, 52,- and Insistent that to hold the organ- [wore on the ground and commenced a teat Ion together tho officers had to make a contract on Feb. 15th which provided that the contract should cover a period of 22V» months nml that for the oil produced from Feb. 13 to' Dec. 31, 190S. the Associated Oil Co. should pay 60',4 cents per barrel ami for the oil purchased from ePc. 31, 1908 to Dec. 31, 1909, a price of 63 cents per barrel was to be paid. This? contract also includes the production I Mi-arch for Garred, assisted by a large posse of citizens. They search eil the brush in»valn until about S o'clock in the afternoon, when It was decided to retire from the hunt am 'try another plan of capture. The sher iff and his deputy took the train for Auburn and a few minutes afterwards (iiirred opened flre on them. He fired si-vcra! shots from an automatic gun one of them hitting a young man mined Wagner, a brother of Conata hi- Wagner, In the leg. The posse ed, consisting of thirty-five members | <?rul new members and lator In the day this board held j among the operators. a meeting and elcted officers to serve j In October and November overtures until the regular annual meeting of j w$re made by the Standard anil AB- the stockholders, which the by-laws' sociuted Oil companies for a contract of members of the Agency In the Coal-; p,,-irned the flre and riddled Oarred I wiiii bullets. Twenty-one shots were jflr'-i' altogether. I It i« said that Oarred had no rea can.^' for shooting the Fallers, and I1 hat he was undoubtedly insane Thei •• had been some dispute between lie- parties over some land Garred :ri(l olil the Falters. field and provides for a minimum delivery of 14,000 barrels and a maximum delivery of 16,000 barrels per day, any excess production over I''-.- 000 barrels per day to be sold to tli-- Associated Oil Company r.t a price t • be agree;) ui-on. This Is the contract that the field i- working under now. Tho fight wa^ made bv the tm-n at tho head of the must grow in a like proportion so as to lie able to care for Mie Increased production, hence the Increase of capita 1 stock. The producers of Kern County feel very kindly toward tho Union Oil Company for the position It took In the fight the producers made for better pries and there are many of them that would like to sea the Union come into- this field in earnest as It has In the other fields. provided should occur In April of each | at prices from 21 to 25 cents per bur- Independent Producers Auency, but year. The officers elected were: Pres-; rel, covering also thu oil that had been' every num in the field enjoys the ro- "Thp people In Hie next flat have a noisy dog." "Why don't you complain?" "Wo have a baby." — Louisville Connor-Journal. dent, M. V. McQuIgg; vlco presidents, placed in storage during the" year. T. Spellacy and F. F, Weed; secretary, This price was not considered Buffi A. H. Llacomb; treasurer, W.B.Raub, dent by the board nnd the offer was These men took ui suits of their work. It was a man's fight to wrest this price from the'pur- chasing corporations, who were de- Hewitt— Do you think long hair i makes a man look intellectual? I i Jewltt— Not when his wlte finds It on his coat; it makesJtlm looi

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