The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-08-09
FOR 70 CENTS BARREL
Oil Producers to Turn i'm at This Rate
Without Bonus.

Chanute, Kas., Aug. 9.-The OPP
tons for the oil pipe line to the gulf
will be held in the National Bank of
Commerce in Kansas City for a few
days longer in the belief that the
MELONS will yet join in the project.
It is now said the MELONS are willing
to go ahead with the deal and two
OF the members of that family have
been in New York since Saturday
morning making arrangements for the
money to take up the pipe line bonds
The MELONS desire, however, the pro-
ducers to put in the production at the
same price all round. Some producers
were promised a bonus to get their
properties in and this the MELONS do
not think is wise.
1t is now the conclusion of the pro-
ducers to put every barrel of oil in
at the price of 20 cents per barrel and
not to pay bonuses to anybody. H. E.
West, president of the Kansas Oil
Canterbury. two of the promoters of
the deal, said today to the Chanute
committee that they were willing for
all of their properties to remain in the
deal. The Cudahys nave expressed
their intention of staying in till the
finish, and the same is true of the
Curl properties at BartlesvilIe, l. It.
All the Chanute properties will stay
to a finish. The options on the Chero-
kee Oil and Gas company's leases at
OAN1aCeb CApH6 4hQTSQdX ana the
owners have said that they would not
extend the option as it is their pur-
pose to build a pipe line of their own
to st. Louis, if the gulf line is not
built, and some united action of the
producers cannot be secured by that
time.
An answer from the MELONS is hour
1y expected. A representative of the
producers is still in Pittsburg attending
to the details of the deal and the pro-
fl1Ir nro FIJI <T,n% IL
be finally settled before tomorrow noon.
The producers have made all the con-
eessions that in their opinion are rea-
sonable. They are sure that the line is
going to be built and if the Melons
back down now it is the current opin-
ion that the Cudahys will take hold of
affairs, In fact it is the universal be-
lief throughout the oil fields that the
CudahyS have gone too far in their
antagonism of the Standard in the gulf
pipeline deal to back out now. The Cud-
ahys have with the past 4S hours said
that if the Melons would still take hold
they would make all reasonable 'conces-
sions and this is taken to mean that
money to take up the bond issue the
Cudahys know where they can get it.
There is a distinctly more hopeful
feeling throughout the oil country than
there has been since the announcement
Saturday that the deal has fallen
company of Pittsburg refused to take
the bonds was that Henry G. Frick is
one of the vice presidents of the COM
pany and he is very close to Henry H.
Rogers of the Standard Oil company.
Rogers warned Prick the Standard
would begin war on all of the oil pro-
perties and all the coal properties and
other securities in which the Union
Trust company is interested in case the
trust company financed the gulf pipeline
deal. The Melons are directors of the
Union Trust company, but they are not
in control of a majority of the stock.
The Standard Oil companys friends
control the company and were able to
give the pipeline scheme a black eye at
the critical stage of the NEGOTIATIONS.