The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1914-10-06
OIL PRODUCERS MEETING
Will Shut Down Field RatheT Than
Accept 40c for Oil.

Accept 40c for Oil.
Oil producers in the Healdton field
met yesterday afternoon and adopted
resolutions indorsing the order OF the
commission and pledging to work in
harmony with the commission to regu-
late the oil business with reference to
the Healdton field. The order which
was indorsed, has been published. 1t
provides that the Magnolia Pipe Line
Company shall not purchase Healdton
oil for a less sum than SOC a barrel,
and it laso provides that the produc-
ers shall not sell oil for less than SOC
barrel. If the pipe line purchases
oil for a less sum, it is guilty OF con-
tempt and if the producers sell for a
less sum, they are also guilty of the
same offense,
The producers also indorsed the
owen plan of limiting the earnings OF
pipe lines to eight per cent and ap-
nroyed a reply repaired by Writ Frank
lin, president of the association to
letter which Col Greer, attorney for
the pipe line company has given to the
press of Texas and Oklahoma in which
the attorney seeks to justify the cut
in the Healdton oil.
The pipe line company will continue
to make runs in the field at SOC until
the runs average $4,000 barrels day
from July /. This will provide for
runs to be made from six to eight days
vet, and in the near future, probably
on Friday or Saturday of this week,
| hearing will be had here when the
commission. the pipe line, and the pro
ducers will be represented.
One of the Healdton producers said
today that as far as he was concern
ed, he would urge a shutdown in the
field. He said the suggestion had been
made that some of the producers could
not shut down without losing their
property, that they were in debt to
the supply companies and that the
supply companies would insist upon
the payment of the bills as soon as
shut down was declared. This produc-
er stated that there were only small
per cent of the companies who would
be in distressed circumstances after a
shut down was declared, and he IA
vored organizing the other companies
TO help finance these few companies
and to see that their holdings were
not endangered. He also stated that
supply houses in his opinion are in
clined to be liberal with the com
panies and he does not fear that rad
ical moves will be made.
The same producer also stated that
the Magnolia people were under con
tract to sell to one company 1000 bar
rels a day of Healdton crude, that the
company had other contracts which it
must fill and that if the producers
would stand close together and refuse
to deliver oil for less sum than SOC,
that the pipe line people would soon
be forced to pay this price, as they
must have the oil.
Mr. Greer's letter makes the state
ment that forty millions of barrels of
Oklahoma oil are now in storage. The
pipe line people might resort to this
stored oil in order to starve out the
producers and force them into the 4OC
price.
, Within the past week the Gulf coast
production has been increased $4,000
, barrels a day, and that means more
oil for the market. This increase, how
ever is calculated on the flush produc-
tion of the wells, which will grow less
within a short time.
Cushing oil is selling at 55c and it is
stated that if there is a shut down in
the Healdton field, that trains or cars
!