The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1914-10-07

then selling at $3.50 per barrel, and
conceded to be the best in our coun-
try We have this report 1t shows
that Cushing oil was worth zoe per
barrel and Healdton oil SOC per bar
rel less than Pennsylvania oils. In
mediately price reduction began in
Pennsylvania and also in Gushing,
until now, Cushing is selling TO the
pipe line companies for SOC per bar
rel, and Pennsylvania at about $50
The Prairie Oil Company first re-
duced the price of Cushing and has
kept II up. This company is the
Standard Oil Company OF Kansas and
Oklahoma. 1t was admitted by judge
Greer on the hearing, that Mr.. Fol-
ger and Mr.. Archbold, large stock
holders of the Standard, own 20 per
cent OF the Magnolia Petroleum Com
pany and Pipe Line Company, reach
ing our field and l think the records
of Texas corporation commission
show these facts.
About August l Judge Greer gave
notice of a hearing before our cor
poration commission, stating that he
desired to take 10000 barrels of OF
per day, because of war conditions
over which they had no control. This
hearing was had in Ardmore, and he
explained that the export trade had
been so reduced because Of the Euro
pean war that they could not take
more than 5000 barrels per day, which
they had contracts for, and because
OF maturing interest on January l,
asked that we accept one-half cash
and scrip for the other half, to ru7
six months. To this We agreed and
a written contract signed by Judge
Greer and our producers was entered
into to be effective September /,
1914. Instead, however, of taking
5000 barrels per day some time
during the latter part of September,
the pipe line company began taking
more than 1900 barrels per day,
and on the 29th, its superintendent
complained that the gauger was not
letting them have as much as they
wanted.
About October /, Judge Greer gave
notice that the price of this Oil
would be reduced to 40c per bar
rel, effective on the 9th, and in his
interview assigns as the reason, over
production and light consumption, and
that the Prairie has 50,00O,O00 bar
rels on hand which has been stored
for seven years, and that this COM
pany has 100000 barrels o hand.
The remarkable part Of this state
ment is the reason given for price
reduction. Oil in storage does not
compete with pipe line runs, nor
does any oil except that taken and
run by pipe lines. The market only
receives what the pipe line carries,
and they have all been carrying their
capacity for months, and this is not
being stored, but refined. The stor-
age oil has not yet gone to market.
If the quantity is too gerat, why has
not the Magnolia Pipe Line Com
pany taken advantage of its contract
with us and only taken 5000 barrels
per day instead of $1,000 barrels?
Judge Greer personally, is of
course, not responsible for the vari-
Gus reasons assigned for cutting the
price of Oklahoma oil, but the pro
ducers are growing suspicious, when
they listen to these reasons, sign
contracts and build up hopes only
to have them broken, and another rea-
son given each time to comfort them
in their financial loss. And to make
it look worse, the Corsicana Oil Com
pany, a large producer the admitted
producing branch of the Magnolia
Company, keeps a man in Ardmore
endeayoring to buy producing pro-
perties from those who may be forced
to sell.
If our oil was worth $3.50 per bar
rel April /, 1914, and soc May l,
why should not gasoline and lubri-
eating oil be reduced proportionate
ly, as we'll as the other byproducts
more than a hundred, be worth
much less? The public has a right
to demand an answer, which Judge
Greer can of course give.
Why do not the pipe line companies
quit producing oil, and why not agree
with producers that production must
cease until conditions change? In
other words, why not quit taking oil,
by consent?
No matter who is at fault, there
is one thing certain, the production
of oil in Oklahoma ought to be cur
tailed to prevent the state, the pro-
ducer and refiner from losses that
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