The herald., 1897-12-22
Tank Company Will Store
for Combine Only
HIGH RATES TO BE CHARGED
WHEN PAID FOR TANKS WILL BE
GIVEN AWAY
Trustees Meeting Regularly-Water
East and Oil West Of East End.
Some Erroneous Statements

The oil market during the past Ten
days has been steady and quiet. Very
little in the way of new developments OF
Importance has occurred in the field
The Producers trustees have daily de-
livered $500 barrels on the $4,000 barrel
contract with the Standard Oil company
and the Santa Fe. Their secretary re-
ports that there have been few sales and
those of small amount and absolutely
none at less than 81 per barrel. The sale
of small block last Thursday at 60
cents per barrel took place outside of the
producers combination.
The Oil Storage and Transportation
company announce that it's first tank
will be ready to receive oil next Monday
and the second tank is here. Oil will be
stored, however, only for members or
the producers combination. No official
covenant between the Interested parties
has as yet been ratified and declared, but
it is generally understood that the tank
owners will charge 10 cents per barrel
for oil taken for storage. This Will pay
for the first two months and ~ cents
per barrel per month will be charged
thereafter. The program now is that
when these charges shall have yielded
them their original investment and III
per cent per annum thereon the tank
owners are to present the tank plant to
the producers combine free gratis,
without charge, la Santa Claus. This
is an exorbitant storage charge com
pared with others-that Of the Union OIL
company, for instance, IL cents per bar
rel per month-and the moral is that the
producer had better hurry and buy those
tanks or be careful to be good and not
get saucy to the tank owners or break
up until they do buy them.
Some peculiar oil information has
found it's way into print lately. Refer
ring to an article published in this paper,
an evening paper says: 'The objectors
to the sale by the oil trustees of large
block of Oil at a less price than 81 per
barrel to rid the market Of an overplus'
age are those who did not sign the agree
ment." This is subtle, but it isn't SO.
Continuing, the paper says: "They
hoped that the trustees would regulate
the market, which would enable them
to slip in and sell their product at less
price, and bear no part of the expense
in bringing about healthy condition"
But it does not explain why If the trus-
tees regulated the market to the dollar
price any one would have to sell at less
than 81 per barrel. The same article
also records that the 18th of the month
was pay day with the trustees for the
oil passing through their hands the pre-
yious month. This is more than the
Ioo inc TO ont M " dav
for only one-half the oil delivered to
the trustees the previous month and
some of the producers object to this, too,
in. spite of the risk they thus take of
not finding a free oil tank in their
Christmas stocking, because. they say,
the trustees promised them an advance
of 65 cents per barrel on all they deliv-
cred last month and they didn't get it.
The same paper says that after jan
uary 1st the trustees expect to pay
$50, 900 to 100000 per month to the pro-
ducers. If this is true the trustees must
expect to buy the 10000 barrels output
at less than 60 cents per barrel after
New Years.
The meeting of the Producers trustees
yesterday was without result, only four
members being present. The Oil Stor-
age and Transportation company will
meet next week and probably declare Of
ficially the storage prices and such ar
rangements as they will make in regard
to the tank plant.
In the east field prospectors in the
eastern edge are striking water fire.
quently and the liveliest work is now
going on around the Rommel wells near
the Alpine street school and will proba-
bly, be continued toward the Sisters
hospital, as finished borings continue to
uncover the vein in that direction.