Los Angeles herald., 1910-03-03

can market all the oil that can be pro-
duced i'm California.
The agences have now become a mar
keting organization and as such must
be ready at all times to tell how much
oil they have for sale. Guesswork will
not do and they cannot figure on wells
about to come in or a producer that
might join. When the contract with
the Associated expired in January the
agencies changed forthwith from
producers organization to a produc-
ers-marketers' organization prepared
to do q general oil business. 1t was
this new movement that brought out
the closed door controversy, the mem
bers of the agencies deciding to wait
no longer for the outside producers
to join the organization.
Say Producers Use Club
Those opposing the closed door at
Bakersfield Tuesday said that this or
der was only a club and that the club
was being used to force outsiders into
the organization. But the members
say the club has been mighty slow in
striking its first blow, when IL is con-
sldered the doors of the agencies have
been open for four or five years and
these "slOW ones" did not see fit to
enter in all that time.
Some apprehension is felt in the con-
nection of the Union Oil company and
the Independent agencies, argument
being advanced that it is the begin
ming of another Associated Oil conf
pany an organization which was once
controlled by the Independent oil pro-
ducers who wanted to free themselves
from the oppression of the Standard
Oil company and get better than 20
cents n barrel, the price then paid.
In looking about for a marketing me-
dunn the Associated appealed to the
Southern Pacific for aid in its behalf.
The Southern Pacific agreed to handle
a large quantity of oil, but a slip in the
transaction left loophole through
which the Associated passed into con-
troll of the Southern Pacific company.
The Southern Pacific and the STANDARD
Oil company being allies made prac-
tically one oil company IN the field
again. 1t was then that the indepen-
dent agencies were organized, with one
share of stock for each member and
each member a director in one of the
two agencies, according to the location
OF his property. The Union Oil COM
pany is now one of these units of men,
bership, having its one share of stock
and its representation in the director
ate.
Agreement with Union OIL
When the contract expired with the
Associated as a marketer for indepen-
dent products the Union Oil agreement
was entered into.
Now the outsiders say this means
the organization of another Associated
Oil company, but such Is farthermost
from the minds of tho Independent
agencies members. They feel that the
plan will work TO better advantage
than the former plan, which was to
produce oil and not TO market 1t them
selves.
The two independent agencies. name
ly, the Kern county and Coalinga, took
steps at Tuesdays meeting to merge
into one body and to consolidate the
two interests in carrying out their
agreements with the Union Oil COM
pany. The legal red tape will have to
be gone through with before this mer-
ger can be effected, but everything
will be, It is said, in shape for the final
step about the middle of April. This
combination will materially strengthen
the Independent forces in the field and
with the closed door in effect May Is,
they will be better able TO adjust their
supply and demand. The closed door
will bar entry of any new company
bringing in It's first well after May Is.