Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1911-05-26

proposed 90 make am investigation To
md ont To Whut extent the present
selling price Of as cents ls am arbi-
uury pipe line price, and how much
10 should be increased To represent
the real market value OF oil at the
point of productions
Attorney Ncasvy representing the
Central Fuel UI Company has been
called upon for further ,Npluo-
tiuu of the contract between the CEN
ual aud the rpNas and lies apparent
met price of % cents ON the produce
uou At amy rate chat ls Jhr figure
ut which the attorneys Tor thy Usage
Iudmus first demanded the uuc-cighth
royalty IL is apparent that the gov
unmvut proposes 90 make the Central
Fuel OH Company pay royalty on "a
price much above the market price
ut iurtlrsNllc, now l6 cents Just
what price is to hc adopted has been
90 bone ut contention ever sIuco the
Interior department took up the mat
ten with the Indians aud the Central
Fuel interests.
ID is understood that even the rcp-
rcsuututNcs of the Indians are i'm
doubt as To whether to cents ls not
too high % price to ask for the OIL
bon view at The obligations carried 10y
the Central Fuel OH Company under
the contract 90 furnish % certain stat
ed amount of o.l The 80 cent CON
tract price, minus the l3 or II cent
carrying cost would apparently give
this value to the oil, but it has by no
means been settled that this is the
price upon which the Indians are en-
titled to royalty
Before settling the matter the de-
parjmcut proposes To probe the oil
situation thoroughly In the Mid-con-
tinut field, and to determine by an
Investigation the facts surrounding
tho operation of the pipeline compa-
MES, whether the Mid-coutincnt pro-
duccrs have been made to suffer by
the liking of an arbitrary price 10y the
pipeline companies that does not
represent the fair market value of the
oil al the producing point The only
statement Assistant Secretary Pierce
would make ON the subject was this:
Before any price can be deter
mined upon as fair price for the set
tlomont of royalty payments under
the Central Fuel oil contract the gov
crumcut must know what the actual
market value of oil is In that field.
There viii probably bc a thorough in
quiry to establish that fact # VIII
be necessary to take into considora-
tion the Central Fuel oil contract tho
general selling price. and an other
facts surrounding the handling of oil
I'm the field. From such facts the gov
crnmont win have To determine what
is the real market value of the OIL.
The raise In the market price of oil
To 4G cents has been received with
considerable interest by officials of the
interior department If makes no
change. however. In the pIans OF the
Departments The Usage matters and
the Central Fuel contract have baen
constautIv bcforn SECRETARY richer
since bo cama info onico and have
|boon rocei,ing considor,IJa ,ttontior
from him Assistant 'secrotory pgorc,
| is f.. ro,ir. Iis month Ian, bos ,.nd
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nrosent t,mo ''' > ~ ''
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