A P P E N D I X

« NUMBER 35

CONTRACT OF PETROLEUM PRODUCERS' UNION WITH STANDARD COMBINATION

[From "A History of the Organisation, Purposes and Transactions of the General Council of the Petroleum Producers' Unions, and of the Suits and Prosecutions instituted by it from 1878 to 1880," pages 41-44.]

Articles of agreement made the 29th day of January, 1880, by and between the Standard Oil Company, a corporation of the state of Ohio; the Standard Oil Company of Pittsburg, a corporation of the state of Pennsylvania; the Imperial Refining Company (limited) of Oil City, Pennsylvania; the Acme Oil Company of New York and Pennsylvania; the Atlantic Refining Company of Philadelphia; the American Transfer Company; the United Pipe Lines, a corporation of Pennsylvania; the Devoe Manufacturing Company of New York; the Eclipse Lubricating Oil Company (limited) of Franklin, Pennsylvania; J. D. Rockefeller, William Rockefeller, H. M. Flagler, William G. Warden, Charles Lockhart, William Frew, Charles Pratt, Henry H. Rogers, Jabez A. Bostwick, Jacob J. Vandergrift, O. H. Payne, John D. Archbold, respectively, buyers, refiners and carriers of petroleum, parties of the first part, each, however, contracting severally for himself, themselves or itself, and not one for the others, and Benjamin B. Campbell, for himself and as president of the General Council of Petroleum Producers' Union, and for the members thereof as shall signify their assent hereto by signing this agreement within sixty days from the date thereof, the parties of the second part, each contracting severally and in the manner aforesaid, Witnesseth,

Whereas, The several parties above named have been and are now engaged in some one or all of the branches of business connected with the petroleum trade, in buying, selling, shipping, storing, refining, transporting and producing petroleum, and controversies have arisen between the said parties of the first and second part hereinbefore named, out of which have grown certain suits hereinafter named, and it is desirable to amicably adjust said controversies and settle said suits and proceedings, therefore, it is hereby agreed between the said parties of the first and second parts:

I. That the said parties of the first part shall and will make no opposition to an entire abrogation of the system of rebates, drawbacks and secret rates of freight in the transportation of petroleum on the railroads.

II. That said parties of the first part further agree that the railroad companies may make known to the other shippers of petroleum on their several roads all the rates of freight, and that said parties of the first part or any of them will not receive any rebate or drawback that the railroad companies are not at liberty to give to other shippers of petroleum.

III. The said parties of the first part further agree that so far as the said pipe-lines are concerned there shall be no discrimination used or permitted by the said pipe-line companies between or against their patrons; that the rates of pipage and storage shall be reasonable, uniform, and equal to all parties, and shall not be advanced except on thirty days' notice; that to the extent of their influence the United Pipe Lines and the other companies parties hereto do agree that there shall be no difference in the price of crude oil between one district and another, excepting such as may be based upon a difference in quality, to be determined by tests; that the said pipe-lines will make every reasonable effort to receive, transport, store and deliver all oil tendered them, and will receive, transport, store and deliver all oil so tendered so long as the production does not exceed an average of sixty-five thousand barrels per day during fifteen (15) consecutive days, unforeseen emergencies and unavoidable accidents excepted, and if the production shall exceed the amount stated, and also the storage capacity of the pipe-lines, the parties of the first part, buyers of oil, agree that they will not purchase any so-called immediate shipment oil, at a lower price than the price of certificate oil, provided that the owners of immediate shipment oil in the Oil Region do not sell to any other party or parties at a lower price.

IV. And all the parties of the first part further agree that until the production of oil reaches the daily maximum of sixty-five thousand barrels as aforesaid, certificates or other vouchers will be given for all oil taken into the custody of the pipe-lines and the transfer of such certificates or other vouchers in the usual manner shall be considered as a delivery of the oil mentioned therein as between the pipe-lines and the seller, subject to the provisions of such certificate or other vouchers.

In consideration of the agreement hereinbefore set forth, and of the execution thereof by the first parties, the said second parties do hereby agree as follows:

That the Governor and Attorney-General of the Commonwealth of Pennsylvania shall be requested by them within ten days of the execution hereof, to enter a motion to dismiss the bill filed by the Commonwealth of Pennsylvania against the United Pipe Lines and others at Number 309, October and November term, 1878, in the Supreme Court of Pennsylvania, and the proceedings by quo warranto Number 12, November term, 1878, in Venango County, and will do all that may be lawfully done to have the same dismissed of record. That upon written motion and agreement the Supreme Court of Pennsylvania may make of record by consent of both parties, an order discharging the rules to show cause in the case of the Commonwealth vs. Rockefeller et al., granted by E. M. Paxson on the 11th day of December, 1879, and made returnable January 5, 1880, and annulling the order staying proceedings made by the Supreme Court on the 8th day of January, 1880.

It is further agreed that this agreement shall, upon execution thereof by the parties, be a full release and satisfaction between the parties of all causes of action of any and every kind whatsoever, arising out of the past transactions involved in the said several suits, controversies, or prosecutions, or incident thereto, so far as the parties hereto or any of them are in any manner interested or have any cause or rights of action for or against each other. And it is hereby further agreed that the Court of Quarter Sessions of Clarion County be, and they are hereby respectfully requested to give their consent to the entering of a nolle prosequi in the case of the Commonwealth of Pennsylvania vs. John D. Rockefeller et al., of April sessions, 1879, Number 25, in which the defendants named in said case are charged with conspiracy, and the district attorney of said county is hereby requested, on receiving the consent of the said court, to enter in said case a nolle prosequi, and the same to be entered of record in said court, with the intent that the same be a judgment of said court disposing of and ending all proceedings under indictment hereinbefore referred to, forever.

In Witness Whereof the aforesaid parties to these presents have hereunto set their hands and seals, the said corporations having caused their seals to be affixed this fifth day of February, A.D. 1880.

Standard Oil Company, by
(Seal)  
Attest:
JOHN D. ROCKEFELLER, President,
H. M. FLAGLER,
JOHN D. ROCKEFELLER,
O. H. PAYNE.
[L.S.]
[L.S.]
[L.S.]
[L.S.]
United Pipe Lines, by
(Seal)  
Attest:
J. J. VANDERGRIFT, President,
H. M. HUGHES, Secretary,
HENRY M. FLAGLER,
J. J. VANDERGRIFT,
WILLIAM ROCKEFELLER.
[L.S.]
[L.S.]
[L.S.]
[L.S.]
[L.S.]
Imperial Refining Company, Limited, by
(Seal)  
Attest:
J. J. VANDERGRIFT, Chairman,
D. MCINTOSH, Secretary.
[L.S.]
[L.S.]
Eclipse Lubricating Oil Company, Limited, by
    THOMAS BROWN, Chairman,
F. Q. BARSTOW, Secretary.
[L.S.]
[L.S.]
Standard Oil Company, by
(Seal)   CHARLES LOCKHART, President,
A. F. BROOKS, Secretary,
W. G. WARDEN,
CHARLES LOCKHART.
[L.S.]
[L.S.]
[L.S.]
[L.S.]
The Atlantic Refining Company, by
    CHARLES LOCKHART, President,
CHARLES PRATT,
HENRY H. ROGERS.
[L.S.]
[L.S.]
[L.S.]
Acme Oil Company, by
   
Attest:
JOHN D. ARCHBOLD, President,
GEORGE F. CHESTER, Secretary,
JOHN D. ARCHBOLD.
[L.S.]
[L.S.]
[L.S.]
American Transfer Company, by
   
Attest:
GEORGE H. VILAS, President,
GEORGE F. CHESTER, Secretary,
J. A. BOSTWICK,
B. B. CAMPBELL.
[L.S.]
[L.S.]
[L.S.]
[L.S.]
Witness,
Witness as to signature of
JOHN V. KEEF.
B. B. CAMPBELL,
W. BAKEWELL.
 
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