The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1918-07-12
O | l.

cent meeting in Tulsa OF commit
tees from the refiners and produc
ers, from which the following il
taken:
I'VE do not pretend to know who
has been advising Mr.. Requa IL
this matter, but certainly his advice
that premiums in the mid-continen'
field need tampering with is bad
The regulating OF premiums is the
regulating Of the price OF crude oil
as premiums are based on the quail
ity of oil 50 far as we can find out
there has been no complaint from
any legitimate refiner or producer
that premiums need regulating.
The government has not been
hampered by the paying of premi-
ums in procuring plentiful and ad-
equate supply OF gasoline or oil
products for war purposes at any
price the government wanted to pay
and the consumer OF oil products
is today getting an adequate supply
at less price than before the Unit
ed States entered the war. There
fore the charge hat the paying OF
premiums has resulted in profiteer-
ing cannot be made. 1t is one es-
sential industry that has answered
every war call made upon it, and
has done so without raising the
price or making oil products scarce
to the private consumer.
"Therefore we cannot see what
evil or pretended evil Nh Requa
is trying to correct or just why ne
is insisting on stopping what he
calls excessive premiums. 1t IS
hard to understand just what he
means by excessive premiums. For
instance a refinery located in the
Yale field with high grade crude
oil at its door can afford to pay
more for that oil than a refinery
located in Tulsa, which has to pay
a pipage charge to get the oil to
the refinery. Then there is the
CARRIER field where in some cases a
premium of $l75 barrel has been
paid. but the CARRIER oil is almost
gasoline and is worth more to any
refinery than Nowata oil, for in
stance, where as a rule no premi-
ums are paid.
Let us suppose for example that
Mr.. Requa, when he finds the pro-
ducers and refiners cannot agree on
any plan of action, puts into effect
an order against premiums. What
will be the result?
'In the first place there is a
large excess of refining capacity
over crude oil production possibly |
almost two for one. The small in
refiner is as rule not
we'll financed and sometimes finds
it hard to pay for his crude oil as
promptly as do the large refiners
and the Standard Oil Companies.
Therefore the premium is regard
ed by many producers as an extra
nducement to him to sell his oil
in view of some uncertainty as to
payment. The small refiner, as ev-
-ryone knows, has furnished real
competition to the Standard Oil in
This country and has been tre-
mendous factor in stabilizing the
oil industry.
III Mr.. Requa suspends all pre-
miums the producer OF oil will nat
lrally sell his oil to the company
hat is always able to pay promptly
md to care for the producer at all
lines. The result will be that the
small refiner with limited financial
means will be eliminated from the
industry and in a short time the
producer OF oil will be back where
he was years ago. solely in the grasp
Of the large interests.
This therefore is the only logi-
cal conclusion that would follow
Mr.. Requa's proposed order.
"All level-headed producers and
-efiners agree on this proposition,
hat the oil industry needs no gov
arnment interference at this time
md that until it has been proven
hat the oil industry is trying to
profit from the war or that the oil I
industry is failing to live up to war
demands for its product the gov :
.rnment should keep hands of and
ct the business alone.
at is sincerely hoped that Mr.
aequa will see this viewpoint and
lccept the advice that comes almos:
unanimously from every man in the
'il business.
"The paying OF premiums is a
natural and healthy outgrowth OF
cal competition in the oil industry
nd the elimination OF the paying
II premiums will cut out competi-
ion and place the business back
nto the hands OF big business. The
title refiner has a right 10 live and
make a reasonable profit and the
roducer OF oil has right to pro-
ure for his hands OF big bust
ess. The little refincr has a right
0 live and make a reasonable
rofit.
at is our belief that many oil :
len are very much excited about
he whole proposition and that 4
ool reasoning is used Mr.. Requa
ill accept the calm and unbiased
idgment of the oil men on this