The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1911-07-21
NEW PLAN
Continued from page five.)

ing its own members and all other
producers as we'll, and it now con
fronts a crisis in its career, brought
about by a physical fact which IS the
only thing that has ever shaken the
body. An enormous surplus of oil,
which must be handled, but which
can only be handled by the making
of large sacrifices and by heroic en-
deayor is the physical fact account
able for the present danger That
fact can not be removed in
. day 1t stands like q great rock inn
reding progress. 1t is Obvious to.
narrative of deferred hopes and it is
amenable neither to argument nor
Caiolery
Management Of the producers af-
fairs has been highly intelligent and
absolutely honest, with whole-heart-
ed desire TO do the best for all con
cerned, yet, it could not dispose of
the giant surplus, for the task was
beyond the bounds of human achieve
n'ent. Always an extraordinary sur
plus has meant cheap oil. Always and
forever it will mean cheap oil. Wheth-
er a producer save for himself, or sell
to a storing company, his oil will be
cheap in periods of overabundance,
for he must stand the expense of main
tenance himself, or discount his price
tc the same extent as, either, he
keeps or sells.
Cheap oil, hard times, are unavoid-
able under circumstances wholly out
side of any control and the agency
scheme, the best ever devised, should
not now have charged against it, as a
delinquency, a natural, obvious, eX
.pected effect to the operation of the
law of supply and demand"
There seems to be a disposition on
the part of the agency to let the small
Operators who are the loudest in their
complaints withdraw should they so
desire, as in the natural source of
things there would always appear to
be discrimination against them. Their
output being small, their receipts from
sales on a 80 per cent basis would also
be small while the same proportion to
a large producer would be entirely sat
isfactory under the present conditions.
Should the large producers remain
with the agency it's strength will not
be weakened, but rather REINFORCED,
by virtue of the elimination of the
weaker element.
Big Holding Company Formed.
| What on it's face looks like a big
holding company has just come into
existence with the organization of the
Pacific States Parent Company in
Grand Rapids, Mich. The Grand Rap
ids Press states that the stockholders
include many bankers, capitalists and
business men in various cities in West
ern Michigan and Wisconsin, Califor-
MIA and other states. Among the direc-
tors are w. R. Shelby, vice-president
and treasurer of the Grand Rapids and
Indiana Railway Company; J. A. Gov
ode, vice-president of Kent State
Bank and treasurer of Berkey & Gay
Furniture Company; II. c. Dollhouse,
president of Acme Lumber Company;
! c.. F. Waters and Ernest A. Crozier,
former County Treasurer. The head
quarters will be in Grand Rapids
Shelby is president, Dollhouse 2vice-
president, Covode treasurer and Croz
Ter secretary.
Secretary Crozier, speaking about
the plans of the company, said: I'VE
have organized a $5,OOO,OO0 holding
company to acquire control of compa.
MES developing staple Western re,
sources. 1t is not an oil company
but will control many subsidiary com
panies that have a large number OF
producing oil wells already in opera.
ton. BY consolidating many different
properties it seeks to utilize the in.
surance principle of dividing the risk
This new holding company pro
poses to consolidate many inside
proved oil properties containing wells
that are producing oil steadily, and
hopes to pay dividends by increasing
the number of wells and the output
Already it has extensive holdings il
valuable properties over the lake Of
loil at Coalinga on which are severa
fine wells. Besides our regular prop
critics we have obtained lands that
contain millions of dollars worth of OF
that our company will get if the Uni
ted States Government wins agains
the Southern Pacific Company in its
move to recover the half million dol
lars worth of lands which the Govern
aTa h. i