Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1910-09-20
Why Is Crude Oil
Lou in oklahoma?

the monopoly but there ls IA commun.
lllN of Interest that s respected Tubs
far they have not benefited the pro-
ducor amy iu price
There b. no lust reason why the
production here is selling at the ridi.
! eulously low price of 3S or 80 cents per
barrel The local representatives. OF
the several companies have Kept the
producers bu,ted with promises of bet
! ter prices Tor the last four years IT'S
| getting pretty stale toe"
Leave II In The Ground
M H. Moore. Pittshurg. PA have
lyour circular of the first inst. request-
/ ing AN answer To- the query. why IA
/ IMid-Cuutlnent crude low The writer
lprcsumes YOU mean why Is the price OF
! IMid-Cuutluent crude oil so low In
comparison with the price la other
fields, and fundamentally the answer
is NOT enough competition
among buyers of oil To bring the
price up 10 q point where II shows TO
the retlner simply reasonable profit
on the refined products.
THE past history of the oil business
land the Interests which dominate II are
too wen known and have been lately
VERY thoroughly discussed TO need go-
] ing into that part of Il at the present
/ time The fact IN apparent that the
buyers Of crude oil are going 10 pay
I Just as little as they can, and they are
going TO got Just as much OF their
profit from the various refining pro-
duets of this oil as they can. This Is
good businoa and Is quite natural.
THE only manner In which an in
creased price for Mid-Continent crude
can be obtained is to leave Il IN the
"a IA.
which ls somefhhNt In Keeping with lis
real value, or for Independent interests
10 build up organizations which are
neither affiliated with or subservient
to the Standard, ANA who can take
large proportion Of the oil and after
putting II through liza refining pro-
cesses sell its products In the open
markets In competition with the large
interests This result however, eau
not be obtained whore they too desire
to pny as little for the oil as they can,
,nnd enter into price agreements with
other companies In the field In order to
keep the price down, and make a wide
margin Of profit between the crude
and refining products
"Ii Is wen to bear In mind In CON
sldering this matter that business Is TO
n cer,aln extent warfare, and corpora
tlons can be excused If they do not
seem TO entertain phllanthroplc ideas
regarding the Indian on one hand and
the producer on the other
Waiting on the "Fans."
Matt Mccormick, Nowata. OKLA
"Mid-Continent crude Is low because:
Lowered originally, on account OF
over production and lack OF shipping
facilities. which wore held back by
Slndty rif'pp' and STATE laglslatlon--
'kept low lRhr tV sccumuatng stocks
present stocks and llFogpects great
enough 10 WELD the necessary club
"Will rcmain low unlil the neces-''
sary moves are nude and outlay re-
turned, and then as much longer as
II is possible for a group OF produc-
ers to SIT behind the Gather, ana agree
as ia whether It was a ball or "A
strike"
Advises Socialism.
An oklahoma Socialist Bartlesville.
Okla" "Mid-Conrinent crude Is low
because unrestrained competition must
always produce combinations (trusts).
else the system ~ profif on which
modern society Is founded would fall
The competitive system calls for con-
stant industrial warfare. As an inevl-
table outcome Of the evolution, which
operates In industry as certainly as In
biology, the standard OH Co rose on
the ruins of small producers trans
porters. rehners ami mnrketers Cor
rectly Interpreting the law of modern
society 10 buy IN the cheapest mar
ket and sell In the highest, and to use
any expedient of force In its power
TO make one market high and another
low, the Standard logically properly
and effectively employs It's power Cin-
cluding It's control of transportation)
for It's own advantage.
"Compettors OF the standard oil co.
can succeed only In the measure In
which they employ the methods Of the
standard. which In some instances
may call for active cooperation with
the Standard.
Monopoly methods naturally Ignore
the law Of supply and demond, for
controls both supply and de-
mand, and makes that economic law
The outworn economic
laws are used aud referred to by mo-
1oDOly only when the ugs OF those
phrases contributes to deluding the
public and maintaining the fiction that
he era of competition exists,
THE logic of the situation requires
hat the monopoly produce hereafter
1 larger proportion of It's own OIL
eliminating the small profit heretofore
obtained by the producer and consol-
dating the producing profit with the
refining and marketing
.osts. II individuals persist in pro-
lucng oil, they must be content to do
10 without profit
"You have very properly asked why
rude ls low, for the reduction In the
,rlce Of refined products has been IN
mailer proportion than the reduction
n the price of crude; that hs, "A larger
lroht is going to the monopoly.
"The price Of Continent crude
viii advance. but only when the pro-
mction Of the wells has decreased 70 a
ioint where the net profits Of the pro.
lncer are no greater than they are
low. The price of crude will be maine
aimed Just high enough TO tempt the
PRODUCER to Keep on producing
n.pc Line Control.
Producer Tulsa Okla. THE pipe
ines by taking all the oil thought this
would stimulate drilling sufficiently
q suppN their lines. Failing IN this,
hey have started with two-ceht
aLSe and there will be further IN
reases until new work starts sutiic-
ently for them II this can be done.
Me pipe lines raise the price OF oil to
timulate drilling The consumption IL
he capacity Of their pipe lines, or
whatever they care TO make 1t. or
curse, they sell the oil where there
s the mort profit in II for them, and
,hen they can make % profit of $500
,er barrel they will not look much
or trade where the profit IL Sl00 or