Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1910-09-22
PRODUCERS IN
REAL EARNEST
PRESIDENT PERRY Files SOME
SPECIFIC CHARGES.
NO ACTUAL COMPETITION
Forty Cents Il . Rrsnous Pidcc--Nsks
Secretary Balllngcr Ia Bring Forth
MCiNcrchcr Report.

| llNN NlNN VIZ NlN hhN liNNNN' NAn va
oklahoma are In deadly earnest IN
their determination to start something
Is evidenced by the activity Of tho
oklahoma oil and Gas Producers
Association. Following his formal
request TO The attorney general for
an investigation Of Tuesday, President
Perry of that organization yesterday
| filed specific charges with Secretary
Of the Interior Ilallinger against the
marketing concerns operating In this
| field, and requested that the depart
mcnt Immediately take action to pro-
toct the Interests of the Indians who
hold royalty rights,
President Porrys letter TO Secre-
tary Ballngcr follows;
Hon. Richard A iallinger, Secretary
of the Interior Washington, u. G,
Sir Several months ago Il repre-
sentative of the department of JUS
tlce, Clark McKercher came to Ok
lahoma for the purpose of lnvestlgat-
: Ing the relations existing between the
three pipe line companies, which are
/ the principal purchasers Of crude oil
in this field This investigation by the
department of Justice was, | believe.
undertaken at the instignton Of your
department. and with the iden that
owing 10 a combination between the
pine line companies the prico paid
for crude oil was arbitrarily and ar
tificmlly held at figure so low that
II could well be said that the Indian
/ lessons who are the wards of the fed
eral government, were being greatly
damaged by reason OF the alleged
combination.
Mr.. McKercher spent some time
collecting data upon which 10 base a
/ report and the producers uniformly
give him what Information and ideas
they had without reserve. II was
true at that time and It still IL true
that the great majority Of producers
| m the field believe that the three
pipe line companies. namely the Prai-
| rie oil ~ Gas Company, the Gulf
Pipe Line Company and Texas Com
pany have a wen defined understand
ing among themselves as to all mat
ters relating ~ the purchase OF crude
oil In this field when Mr. McKer-
cher was making his Investigation the
production OF the field was In excess
Of the transportation facilities and
consequently II was difficult to dis
cover evidence 10 the effect that the
pipe line companies had an under
standing that competition between
them was 10 he suppressed, At that
time each company could purchase
all that il needed every day and there
still remained surplus for which
there was no market II IL evident
that under these circumstances little
evidence Of n stifled competition
could be secured, At the present
time, however the nroducaon mo
more than equals the transportation
facilities and is still steadily decin-
ing. There is, therefore. now an op-
portunity fer actual competition and
yet the producer has looked In vain
for It. The price, now forty cents, ls
ruinously low from the standpoint o'
the producer and Of the Indian roy
atty owner Value OF properties Of
course are greatly depressed by rea-
son of the continuance of this low
price Cor so many years and the pipe
line companies have recently greatly
Increased their activities In the out
rlsht buying of producing properties.
In this way they have absorbed some
.of the largest properties In the field
and are sailI actively engaged IN add
Ing 10 their holdings
II Is reported on very excellent
authority that the Central Fuel oil
Company Of Bartlosvllle, which Is the
new company that has Just taken over
the properties involved IN the Priest
ley deal. have made contract for
"a period Of time with the Texas Com
pany in which that company pays
the Central 90 cents per barrel for
It's OIL ! have not seen this contract
nor copy of IT, but the report as
TO the price Is so persistent and so
wen founded that II Is generally be-
lieved here This fact, II seems TO
me, would be very good evidence that
for long time the Indian lessons,
who are your wards, have been re-
ceivug grossly Inadequate price for
their interest In the production. II
seems 10 me that circumstances have
changed sufficiently since Mr.. Nc
Kercher visited the field that the de-
partment would be justified in re-
questing that he be sent out again
to Investigate further and submit a
supplementary report.
The producers have for some time
been expecting to see some results
from the McKerchner Investigation,
but as yet no report has been made
public and no results. beneficial or
otherwise, 10 the Indian lessons or TO
anyone else are apparent, ! would
respectfully suggest that yout do
partment take such steps as ar nee
ossary 10 secure the publication Of
Mr. McKercher's report or the find
ings OF the department Of Justice
based thereon, 50 that the Indian les
sors OF the state of oklahoma aud
likewise the oil producers, will he in
formed as to what MIR. McKercher's
conclusions We're AS to the existence
Of definitely arranged mohopoB
in the purchasing of crude oil in Okla
hOma,
Yours respectfully
E. r. PERRY,