The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1905-05-03
PRICE OF GREASE DOES
NOT PAN FOR THE
PRODUCTION
BIG LOSS TO KANSAS
Crude Oil Causes Decrease
of $4,000 Per Day.
CBy AssocIated Prsssl

NfjH Associated Rrass.l
chanute. May All grades Of crude
oil above the specific gravity Of 2S de-
rrces sold for Sis a barrel a year ago.
Every barrel produced in Kansas was
run through The pipe lines Of the stand
ard oil company 90 the rhneyy of Neo-
desha or to tie storage tankage. In
September a gravity basis went into
effect whereby oil was paid FOR according
to grade. on or 81 degree gravity. the
highes, grade on the Kansas product,
brought oighty-seeen cents a barrel and
there was difference Of ten cents for
every degree down TO 2S degrees. Below
IS degrees the oil gruded as rISansas
heavy and was paid FOR az the flat rate
of forty-scven cents barrel.
Today OIL 80 degrees gravity sells for
nty-seven cents barrel and oil of 30
degrees gravity for thirty-seven cents.
The Standard has reh. since the be-
ginning Of March TO rpt. ousr Is pipe
lines a lower grade than 3v ueg rees On
the gravity basis the Kansas heavy oil
would be cheaper today than water bv
The barrel Good water costs forty-two
cents a barrel in most Kansas towns.
4 rue HtANN hl NAA ~ AatA UNANh AAAN Nfs'N
OF getting It to The top OF the pipe. The
Standard. which Is the gauger Of the
gravity. secs 70 il that no more 32-de-
gree oil is sold than is absolutely neces-
sary The cost To the field in the ve-
duc,lons In price which have occuufAd
since last year. Is something more than
80. .0cC day This would mean trifl
more than sS,2S5.OoO year or nearly
enough in the course Of twelve months
TO build the pirc line from Kansas city
TO whiting Ind.
one feature Of the situation not un-
derstood by Kansas operators Is that
while oil here is going down az the
rate OF four and five cents n barrel, ths
reductions in the East are less than
three cents IA barrel for the heaviest
grades and average cent barrel
FOR the lighter grades II the theory Of
overproduction holds GOOD the same
state Of Affairs ought 20 prevail IN Penn
sylvania and ohio. in the judgement OF
the producers, as prevails here Kansas
/ oil has always been elassed with North
/ Lima. o.. oil There IS 81 great difference
| IN the oil. due to the sulphur base Of the
North Lima oil and the asphalt and
iaranin base Of the Kansas territory
iiroduct.
It costs more to refine the Lima oil
/ than the Kansas OIL and ;he Standard
/ Iaid millions for the patent which en-
itbles Ct 10 &c. the sulphur out of that
product. But for refining purposes and
ON The gravity basis tho STANDARD ohi-
cials have always classified the Kansa.
OH and the North lima oil together
The North ,.iroa oil according to to-
days quotations. brings eiehty-sever
cents a barrel. while the best grade o.
Kansas oil brings only hfty-seven cents
la barrel c. y. Amyx a producer
said
.If there is anything wanting to con-
vince Commissioner Garfield that th'
STANDARD has monopoly in the con
lrol Of market the control Of tho
lldpo line and the hxing OF price
should supply il, We have to take tn.
prices fixed by tho STANDARD or sell n'
rom We have 70 use the Standard pip'