The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1917-07-15
HEALDTON CRUDE
PRICE TOGOVERNOR
WILLIAMS is ASKED TO USE HIS
OFFICE TO BRING REASONA-
BILE RETURN FOR OIL.
LOSE $4,000 DAILY
Executive Promises to go After Situa-
tion From Every Direction and II Dis
elimination Is Practiced IL VIII BE
Dealt With Effectively.

Declaring that the producers lose $15,-
100000 annually and the state nearly
100000 because OF the prices fixed by
the Magnolia Petroleum Company, the
producers Of oil in the Healdton field
through their committee. consisting of
w. b. Johnston, Writ Franklin and S.
A. Apple. all of Ardmore, and ]. A. Blaf-
fer, vice president Of the Humble Oil &
Refining Company Of Texas, laid their
grievances before Governor r. l.. VIII
liams yesterday and asked him to use
his office to secure relief. The commit
tee showed the governor that oil in
north Louisiana is selling for $3.50 a
barrel and oil in the Healdton field at
ninety cents. The loss to the state
comes on the three per cent gross pro-
duction tax.
Governor Williams has promised to
have the matter investigated by the at
torney general at once, it is said, and If
grounds can be found for action under
the antitrust laws or other statutes of
the state. such action will be taken.
Some other line Of attack may he found
TO relieve the situation. we will go af-
ter the situation from every direction"
the governor il quoted as saying, "and
If discrimination is being practiced it
will be dealt with effectively"
Producing 10000 Barrels Daily.
This field at the present time is pro-
ducing 10000 barrels OF oil each day.
the posted price for which is ninety
cents per barrel, as fixed by the Mag
rolia Petroleum Company. which price
has existed since last fall" so reads the
evidence submitted to Governor Will
laims. "Other oils in the mid-continent
field are now selling at S1.70 per barrel,
posted price. and in most of the fields
a premium is paid for oils ranging from
| ten cents per barrel TO seventy-five
cents. This premium, however, We are
/ inform'\0 paid by independent refin-
cries" ".
The /, .oducers declare that they ask
a reasonable price for their oil and that
they be not Disseminated against by
the pipe line companies Evidence was
presented TO the governor to show that
Healdton producers are now receiving
the lowest price in the United States.
/
duce only one per cent of gasoline. The
Healdton oil producers declare that
when the United States government
called for bids on fuel oil TO supply the
navy, a large part of which supply is
taken from the Healdton field. the Mag
rola company. which fixes the price OF
this oil and has a pipe line running di
rect from the field TO tidewater. made
no bid, although the government is will
ing to pay fixed price Of SIPS a bar
rel. ~ Hkfx
Daily Loss 1000.
/ A daily loss Of s42 900 to producers /.
! suffered because Of this discrimination
+ and the state loses $3.50 each day by
e reason OF the gross production tax o.
S three per cent which the state collects
! from oil production. This loss is figure,
!. on the present price OF Healdton oil an,
e the reasonable price the producers ar
e asking. II is argued that an increas
n in price Of Healdton oil will at no tim
Y increase the price OF gasoline or othe
: hy.products OF oil. since refined prod
4 ucts have their prices fixed from tn
g higher priced oils.
y The producers declare they are will
d Ing that the government should TAX
l. the oil at any reasonable price after a
/ investigation. They ask that these evil
$ be corrected. that the facts submitte
be- called to the attention OF the seer,
tary Of the navy and that the govern
ment operate the Magnolia pipe line an
. refinery during the war, II necessar,
They say that at present prices ar
too high for them to buy tanks for tn
, storage OF oil ard that they ore thereb
i, forced TO sell at the low figure. Tha
i no competition exists between the fou
\ lines which carry the oil OF the fiel'
/, that the Magnolia company has empha
!, ically refused to pay a reasonable priC
!, for oil and that the annual dividend
~ show that the pipe lines are earnin
4 enormous profits, are also charged.