Los Angeles herald., 1910-02-15
FIELD STORAGE
A VITAL POINT
BAKERSFIELD MEETING WILL
DECIDE QUESTION
LARGE RESERVOIRS MAY BE PUT
ALONG PIPE LINE
If Action is Taken All Surplus Oil
Will Be Run Into Tanks and
Negotiable Certificates
Issued

COALINGA, Feb. 14.-The PROPOSE
tion of storage is to be one of the chief
tosics for discussion at the coming
open meeting of the agencies in Bak-
'ersfield March /.
The committee appointed at the last
meeting to report on plan for sup
plying a large and sufficient storage is
at work, and one of its members is S.
A, Guiberson, jr., of this city the
committee is working out practical
plan which will in all probability call
for an Incorporation separate from the
agency and Producers company, but
in which all members of these COM
panies will have an interest. Large
reservoirs, either steel or concrete, will
be constructed at points along the pipe
line, in the fields and at the seaports.
The individual companies and pro-
ducers will hold their pro rata interest
in these reservoirs whether they are
situated on their property in the oil
fields or on the seacoast. All surplus
oil will be run into storage, and stor-
age certificates will be issued which
will be negotiable at the banks. A
storage rental, of course, will be
charged.
In discussing the quetion Mr. Gui-
berson spoke in favor of big storage
facilities. He declared that oil in stor-
age, or even a big storage capacity,
would be one of the best weapons of
the agency and if his ideas are car
ried into effect plans for big system
will undoubtedly be made.
In the event that the agency adopts
| the closed door policy, the matter of
storage will undoubtedly receive inn
mediate consideration. A temporary
surplus production is to be expected,
and the agency is planning to handle
it to advantage.
ST. Clair Talks Closed Door
IF the oil men who are holding
off from signing the agency contracts
will get into the fold and place their
production with the agency, in six
weeks time all disturbing questions
will have disappeared and the busi-
ness outlook will be perfectly serene"
This was the statement made by L..
P. st. Clair, president of the Producers
Transportation company and Bakers
| field Independent Oil Producers
agency, who is mere for a few days
reviewing the local situation.
| Mr.. ST. Clair is one of the chief ad-
vocates of the closed door policy of
the agency, and in his opinion no
question pertaining to the states oil
| industry has ever attracted SO much
attention as this one at the present
| time
| whether or not the agency is to
close the doors means much to those
| producers who are outside our organ
| ization," said the oil man. In fact,
| the future of their business depends
upon our action. And these pFoduc-
! ers realize this fact, too, However,
we want actions not words, and it
will be a case of either for us or
against us from now on. We are
tired of holding up the umbrella for
| these fellows to seek shelter under
To Final Vote
"At a meeting to be held in Bakers
field March 1 this question is to be
| finally determined My position and
the position of the agency executives
is we'll known, and if we cannot JUS
tify our argument for the closed door
policy we will be satisfied that the
other course predominate. 1t is a
case of self preservation for us, and
in my opinion the course to pursue is
sharply defined.
1--WE invite the attendance of every
producer at the Bakersfield meeting.
We want representatives of every
company and every oil man to come.
We invite them to take part in the dis
cusSions. If the course we have
mapped out is not the proper one, per-
haps some oil man present may make
a suggestion that will give rise to an
entirely different solution of the
problem.
zone great defect I find, in talking
with the producers about this ques-
ton, is that they do not understand
it as it really exists, and they do not
tInyptIorl1I1ys tlla q nj
with the Union Oil company, under
which tho Producers Transportation
company was organized. This agree
ment will handle any contingency
| that may arise. 1t is without a doubt
a perfect arrangement and applies
to every phase of the oil business. I
have found cases where the position
of the agency is misunderstood, and
as soon as these cloudy points are ex-
planned, the advantage of the organ
| ization is apparent and the result is,
the befuddled operator Immediately be-
comes an agency member.
Talk with Every Oil Man
"The officers of the agency are
making an endeavor to talk the mat
terAover personally with every oil man.
Those we do not see, we wish to have
attend the meeting in Bakersfield
March l. We hope the discussion will
be full, bringing out both sides of the
| case to the satisfaction of every one
present, and if we cannot justify our
contention that the agency should
adopt the closed door policy, we will
expect the other proposition to carry"
The question is receiving consider
| alton commensurate with it's impor-
tance at the hands of the producers
of the state, Mr.. st. Clair says, and
in every quarter there is widespread
interest in the matter. Many local
applications for membership have
been received since the last meeting
in Bakersfield. and in all the fields
there have been many expressions of
confidence and willingness to stand
with the agency, but from this time
on these laudatory "hot air" talks will
not go with the agency executives.
They mean business.