Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1916-04-21
Oil Men Make Fabulous
Bids at Most Stupendous
Sale in History.
TULSANS PROMINENT
1O7 Leases Put Up at Auc-
ton Bringing Average
of $500 Per Barrel.
BY ]. A. MKEEVER


DAWHuSKA. okla. April 2O.-fiis-
L tory in the oil world was made at
Pawhuska today when nine thousand
barrels of oil production was sold at
public auction to oil operators from
all parts of the country. Several mil
lion dollars was paid for the los oil
leases put up fer sale. Many leases
were secured at real bargain prices.
while others brought money far be-
yond what had been anticipated. The
Pierce Oil ~ Gas Co, Gypsy Oil com
pany, Sinclair Oil company. Il A. Gill
lespie Winona Oil company. Okla OIL
company, j. NJ. Landon, West Il Lam
bert, Gunsberg Il Foreman, and the
DeVonian oil company were among
those who purchased heavily. The
sale was started after 2 o'clock in the
assembly room Cf the Usage Indian
school and the little room was unable
to accommodate the five hundred or
more bidders and SPECTATORS. and the
operflow filled the corridors. Super
intendent George Wright explained
the rules of the sale and Auctioneer
h. Walters of Skeedee, Okla. then an
nounced that tract one was ready for
bids.
Bids Slow at First.
NOT II Dlu WAS TtCtlNtu anu lllt llISl
six tracts offered did not receive an
the part OF the bidders, because as
soon as the ice was broken. bidding
became fast and furious. Later on
the first seven tracts were also put up
and sold for a good price.
When adjournment of the sale was
taken at 8 o'clock in order to allow
time for supper just little over one
half of the total number OF leases Of
fered had been sold and only one of
the really big leases had been put
upon the block and disposed of. The
total figures realized from the sale
during the afternoon were s1,721, ,1S7,
of which S1,354,350 goes to the Usage
Indians and the balance goes to the
present owners of leases to pay for
casing and equipment on the leases.
The total amount Of daily production
sold during the afternoon was 2,675
barrels which indicates that the aver
age price per barrel was dirt cheap. or
less than $3.50 per barrel. In opening
the sale Superintendent Wright an
nounced that bids of so much per bar
rel or lump sum bids would be accept
ed. but no per barrel bids were made
during the afternoon. He announced
further that 1t had not been deter
mined whether oil run since March l6,
when present leases originally erpired.
would go 20 credit of purchaser or not.
Although the bidding opened rather
slowly 1t began going along when the
fifteenth tract was put up and the
auctoneer shed his coat. displaying
his gaudy vest.
Highest Price Paid.
Tho highest price paid during the
afternoon session was that paid by
George Foster, representing the De-
vonian Oil company, who purchased
160 acres in section 3-20-12, near
Tulsa, containing one we'll with bar
rel and half production per day
The price paid was $1,000 1t Is re-
ported. however. that the Devonian
has good geological dope on that
piece. The first big money when
trct 81, which is 100 acres in section
3l-25-11. was offered for sale. This
piece had six wells with daily pro-
duction of SOC barrels. Nelson X
Moody. president of the Prairie
Oil & Gas Co., and w. l.. Connolly, OF
the Sinclair Oil company of Tulsa
sitting side by side. run the price up
Continued on Page Two.)