The History of the Standard Oil Company/Volume 1/Appendix/Number 15
NUMBER 15 (See page 106)
THE PITTSBURG PLAN
[From the Oil City Derrick, May 17, 1872.]
1. Refiners to lease to the company for five years their superstructure with sufficient real estate to carry on the business of the works.
2. That the rental be eight per cent, per annum on the appraised value of the superstructure, and the company to assume all risks and pay all ordinary taxes.
3. Lessors to pay into the treasury of the company for a working capital one-half of the appraised value of the superstructure in cash or the equivalent in refiner's stock.
4. Said lessors to receive for money paid in as above the bonds of the company, in amount equal to cash paid in, and stocks of the company for an equal amount; said bonds payable in five years or at the option of the company after one year, said bonds to be denominational coupon bonds to bear interest at the rate of eight per cent, per annum, payable semi-annually.
5. The company shall not pay annually more than ten per cent, on the stock as dividends until the said bonds are redeemed.
6. After the bonds are paid, then the company shall have the right and shall be obliged to purchase all said superstructure at the full appraised value first made, and shall give in exchange for the same stock of the company for the full amount.
7. Each district shall appoint a local committee of three persons to make appraisals, and when any appraisements are being made, the chairman of each local committee shall be required to be present to take part in the appraisement.
There shall be a board of appeal which shall be composed of the chairman of each local committee. All presidents of the company shall be presidents ex officio of the board.
The committee shall place a cash valuation on the superstructure and shall be instructed as to the manner in which the valuation shall be obtained.