The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1918-06-27
The Chicago Conference.

The Oklahoman carries the fol-
lowing report of the Chicago con-
terence:
The conference at Chicago be-
tween committees representing the
producers and rehners and market
ers of oil to devise some means
whereby some system could be de-
vised for the future conduct of the
oil industry in the Mid Continent
field, ended last night in an agree
mcnt by which refners and skim
ming plants without sufficient pro-
duction to supply their needs are al
lowed to charge a small differential
above the market or posted price.
Competitive premium paying is pro-
hibted, the differcntial, which it is
understood amounts to 10 cents
barrel for an oil grading higher than
80 gravity, being the maximum price
which the government will allow.
There is to be no advance in the
price either of crude or refined oil
at this time, at least. All branches
of the industry are to abide by the
agreement in case il is acceptable to
the oil division of the fuel admin
istration. 1t is to go into effect
upon approval by the divisional
head, NJ. l.. Requa.
Arguments Heated.
There was more than little acri- |
mony in some of the discussions
which had been going on for two
days. The producers committee
was stoutly opposed to the gravity
system of purchasing crude, which
had been proposed by the skimming
plant owners, and also opposed to
the premium system. The produc
ers' committee took the position
from the start that there are too
many refneries in Oklahoma and
Kansas: that all of the domestic
needs could be supplied with less
than one-fourth the number OF
plants now in existence. Further.
the producers committee declared
that the skimming plants were
source of waste; that many of the
valuable commercial contents of !
crude oil were lost through the fail
ure on the part OF the owners of the
skimming plants to provide the nee
essary machinery and equipment for
their manufacture.
The producers committee also
took the position that the time is
not very remote, as things are reck
oned in these days, when there will
be a shortage of gasoline unless
some new pool is discovered which
will materially add to the present
daily production of crude oil. The
committee for the producers finally
asserted that but few of the So
called rehneries operating in the
Mid Continent field can fill gov
eminent contract according to pres
ent specifications, and that there
fore they could not claim as 4 rea-
son for their existence that they are
essential industries or in any way
assisting in the winning OF the war.
Rehners Differ.
There was an apparent divergence !
of opinion among the rehners them
selves. The plants which are com
plete-and some OF them which are
not complete-owning their own
production, pipe lines. storage and
distribution facilities, were opposed I
both to the gravity system which
had been proposed by some OF the
smaller rehneries or skimming {
plants and were also opposed to the !
continuance of the premium system
as at present practiced in the field. I
So that the Western Petroleum Re $
6ners' Association could not really ,
present a solid front in opposition I
to the arguments OF the producers {
committee. I
There was more than a chance /,
that the conference would end in :
as all past conferences !
of like character have ended. till the !
confcrees were notified that unless
some sort of agreement was reached :
the government would take over the
refining and distribution
Of oil in the immediate future. Then.
and then only, the various branches !.
Of the industry sat down TO the con-
ference table in a spirit of give and
take and through concession and !
recession the agreement as above
outlined was the result.
Contracts Involved.
One of the important features OF
he conference and which assisted {
in the adoption of the Q
iifferential clause was the fact that !
here are outstanding number OF c
contracts for future deliveries of
rude oil at a premium and it was
ioubtfu in the minds of the lawyers {
any action on the part 9
.ither of the conference or the oil I
iivision could impair the validity OF c