The San Francisco call., 1910-09-21
LOCAL CONCERN
To BUY FROM
INDEPENDENTS
Big Deal Completed for the Sale
of Surplus Petroleum
of State
RumOr Has Ii That Purchaser
Insisted Upon Naming Its
Own Terms

Reports were circulated on the oil eX-
change yesterday that the Associated
oil company had contracted with the
Independent Producers agency for its
surplus petroleum. No. details were
forthcoming. and in the Offices of the
Associated the story was denied.
There is not thing in it" declared
Assistant Manager Scrfbner.
The reports. nevertheless. bear the
stamp OF authenticity and there is a
general disposition to accept these as
true. Il is known that there have been
extended conferences between the two
organizations and yesterdays reports
were traced to local brokerage house,
which is known to be close up.
The Associated's cut in prices is
working out as anticipated. Several
valley companies have reduced their
output to meet the new conditions.
With all tankage full the wells have
been held down to the mere necessities
Of the moment The agency can not
move half the oil offered it at the pres
ent time, and in consequence there has
been curtailment OF production in
its. membership. In the coast
fields. the Union is merely mark
ing time The Palmer, its tanks
and reservoirs full, has closed UP No >
gusher. In the Coalinga field the con
ditions appear 10 be more satisfactory
than in any other district. Deliveries
are proceeding regularly on old time
contracts.
Tt is well known that the agency
has been dickering with the Associated.
The former has more petroleum than it
can handle. The Associated has some
large contracts for which il is still in
need OF oil Tt would appear that the
Associated is determined TO get this oil
on its own terms. II is even limited
that the conditions proposed practically
place the Associated in control Of the
agency companies.
The Union oil company has served
as the parent company for the agency
and would be slow to relinquish the
advantage Of position thus bestowed.
HAVING BUSY TIME
On the other hand, the Union is hav-
ing a somewhat busy time IA aking care
Of its own affairs. 1t has the Lake
view production of some 5000. 600 bar
rels scattered over the Maricopa flats
and hills in open reservoir exposed to
from winter freshets.
The Union has been still further en-
barrassed by the excessive production
of the agency members, which has
proved 70 be beyond pipe line facilities
or the Unions present ability to
handle. ~
This situation has not been Of the
Unions making, but has come sudden
ly through the development Of such re-
markable performers as the Lakeview
and the American Oilfelds' giant in the
Midway.
To add to its other difficulties. the
Union has been hae object of attack
from interests formerly affiliated with
it, 1t is plain that the troubles within
the corporation that led to the with
drawal Of John Baker Jr. as resident
manager have not entirely ceased It
was given out at that time that Baker
had sold his Union stock He has
placed himself in a position thereby
from which he can retaliate on the
company and not suffer personal loss.
He is held primarily responsible by the
Union officials for the two most recent
attacks on the Union management. one
growing out of the dealings with the
Claremont oil company and the other
in connection with the affairs of the
Union Newlove.
UNION Is MAINSTAY
stay Of the small producer. It was the
Union that met the situation when gen
eral Generalization threatened the in
dustry. II has been through the ef-
forts Of the Union that prices have been
sustained TO the present time.
The completion of athe 100000 bar
rels of storage now being constructed
will help the situation. II is even pro-
posed now to augment this by addi-
tionsl storage to the amount OF
10000 600 barrels.
II would appear as though the Asso-
ciated and the Union were watching
each other with more than usual in
terest.
The cessation of some OF the big
Eushers would simplify the situation in
very short order. The Lakeview is still
producing. however, at the rate OF 49,
600 barrels a day. The American Oil
fields No. 79 is still flowing in the
neighborhood Of $4,000 barrels daily
Neither shows any immediate intention
OF quitting In the nature of things.
the end can not be far away. These
big producers may be expected in the
course OF q reasonable space OF time
TO settle down to the level of some of
their neighbors In the meantime 1t is
q question of storage.
1t is the storage problem TO which
the Union has specially directed its
efforts. With this adjusted. its officers
feel that there need be no surrender
10 the demands of any other concern.
TrArTTEn OH MnANfU