Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1911-04-04
ny WILLIAM Il. CURTIS.
Especial Correspondent OF the CT
Ll------..-I L. !


Especial Correspondent OF the Chi
oago Record Herald,)
Oklahoma Is the greatest petroleum
producing field In the world, surpass-
Ing Psnnsy lysnis, Ohio, West virginia,
ana all foreign centers OF production,
although II fell behind California for
one year. All OF this oil belongs TO
the Indians, and they receive "A royal
ty upon every barrel that is pro-
duced The average daily produc
tion In oklahoma Is about 10000
barrels and the Indian owners Of the
land receive a royalty of 10 per cent.
or ~ per cent. l could not get the
returns for 1910, because they are
not yet complete, bur the records for
1909 show that out OF total OF l00,-
coo members OF the Five Civilized
Tribes 1900 were being paid royal Z,
tics by the oil companies on "A basls
.ot 2l717,000 barrels in 1907; 41,070,-
600 barrels In 1908, and 40,21O,0 600
barrels in 1909. IL
During the year 1909 the Indian
Burean of the United States Govern
ment disbursed S4.5G9,126 In royal
ties and bonuses to the $1,000 Indian
owners Of oil lands among the Five
Civilized Tribes. and S4SS.sl0 to the
members Of the Usage Tribe, which ,
Is independent This Is an average
of about 5000 each to the members of
tho Five Civilized Tribes and nearly
$500 each TO the members OF the ,
Usage Tribe, who are the richest peo-
pie In the world. They have higher
average of wealth per capita than any 4,
other community I'm America or else
where derived not only from IDyalties
from oil and coal, but from the leas-
ing of their farming and grazing lands
to farmers and cattlcmcn.
II is estimated that the Osages. who
number about l 200 people, are worth
an average Of $4,000 each, but that
is mere conjecture. II is impossible
to estimate their riches. They are
doing very littlc in the way Of i'm
provement, Very few of them save
their money or spend It In such n
way as TO promote their welfare
They waste It in extravaganza, folly A..
and dissipation. and wealth is q curse
Instead Of a blessing to them. But !
they Will always have enough to live
on. as their trust funds in the treasury
OF the United States are sufficient 10
sustain them forever.
GOO
There is a strip OF land stretching
from the Neosho River in Kansas
down TO the Gulf of Mexico in Texas
under which are two, and in places ,
three, strata OF sand which contain !
a 10,
roof of limestone, varying IN depth
from the surface from 700 TO 1000 ,
feet. The strip is about 100 miles ,
wide. In Kansas and the Northern
part OF oklahoma the sand Is soltdl-
fled into stone. but is disintegrated as
II extends southwark and In the Texas
and Louisiana fields the sand is in I,
loose particles
The discovery OF oil in Oklahoma
came after the Kansas development
Ir 1901 and 1902 prospectors went ,
over the border and drilled upon lands
belonging to the Cherokees, Choc- ,
taws and Creeks, the former being
nearest the Kansas line. At that time ,
the Indians, who had held their lands
In common. were receiving their al q
lotments and prospectors had to make ,
leases with individuals instead of with !,
the tribal governments. Each lease d,
was approved by the secretary OF the d,
Interior. The terms at first were i
from 81 to $500 an acre, while pros ,
pectina waa going on. Later. when {,
oil was struck and the productiveness :
became permanent, leases were made ,
on royalty Of 3, 10 and finally ~ b,
1-2 per cent OF the crude oil produced ,
The royalties were calculated by the
pipe line companies, which buy the ,
entire product and measure 1t as II
comes from the wells Tho daily re-
turns from each well were sent to
the Indian agent. who computed the
percentage 10 which each Indian was
entitled, and the pipe line company
paid II TO the agent In monthly set
Elements.
There are three companies doing ,
business In Oklahoma. buying land, !.
drilling wells, operating pipe lines and a.,
refining oil, so that there Is no monop-
oily, although they have an under
standing and do not interfere with
one another. ,
The largest of the three is the 4,
Standard OH Company. which Is rep ,
resented by subsidiary organization
known an the Prairie OIL and Gas {
Company, which has a pipe line run
ming from the oklahoma field 70 It's !
refinery at Neodesha, Kan, and from I,
there TO another refinery at Kansas ,
City, Mo. II Is also building pipe I,
line TO Baton Rouge. where large re- ,
finery is being erected. The new line :
passes through the new Kato and
Louisiana oil fields The Standard OIL ,
Company handles one-half OF the en-
tire product OF oklahoma. II owns
i,157 storage tanks and 6.705 acres OF
land, has 80 pumping stations, owns
s,23S miles Of pipe. lines. operates L.
227 wells. employees $40 men. pro- /.
duced 2s.77s.726 barrels OF oil last
year and purchased 13s,to1. .s65 bar
rels from other producers.
The second company is known as
the Gulf Pipe Line. which was organ
ised by John w. Gates and associates
In 1907, with capital OF s3.500,000.
.ua -. about -n0 t,,ttaa ~ nina iinaa :