The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1918-02-01


The largest sale Of storage oil in the
Healdton field owned by local com
panes was consummated yesterday
when A. Golden, of the Golden Fuel
Company Of Fort Worth, Texas, pur.
chased ten 55,OOO,barrel tanks OF oil
from the Gates Oil Company and one
| 6j 00O.barrel tank from the Extension
! Oil Company. 1t is understood that the
same purchasers are negotiating for the
purchase OF other local storage oil. The
( sale that has already been completed
leaves Jake Hamon the largest owner
OF storage oil outside Of the pipe line
companies. 1t is not known for whom
the Golden Fuel Company purchased
| his OIL, but rumor has it that the oil
may eventually find its way into the
hands Of the government.
The officers of the Gates and EXten.
sion Companies will not make public the
price the oil brought. 1t is known,
however, that the total transaction in.
volVed over million dollars, and mas
muck as the last storage oil sold, which
vas purchased by the Pierce-FordyCe
Oil Association Of Fort Worth, brought
$l.S5 per barrel, it is assumed that the
present sale was not made at 4 less
price.
This sale is a marked example Of the
wisdom Of storing oil when the price
is below that Of production and when
there is a limited market for oil, The
Gates Company began storing oil some
hing like one year ago when oil was
forty cents per barrel and the pipe
Ines were pro rating runs. AS a result
CT their foresight the company must
be making over 100 per cent on what
oil 1t stored considering the market
price at the time the oil was placed in
storage, to say nothing Of the fact that
the eases produced 100 per cent of ca
paCity at a time when the pipe lines
were taking only a portion Of the oil.
The Gates Oil Company under the
presidency of +. A. Simpson, stands out
high among the notable successes that
have been made in the oil industry in
the last few years. This success is all
the more remarkable when it is re.
inembered that not a single officer of
This company has ever had any pre-
vious oil experience, and in the face, at
times, of chaotic conditions of the oil
business that proved too much for many
old-time operators The Gates Oil Com.
gany has about / $50 barrels Of settled
production, is out Of debt, has a big
surplus on hand available for dividends
end IS IN position to be operated on a
diydend-paying basis indefinitely In the
future.
The Gates Company Is just finishing
one Of the finest casinghead gasoline
rlants TO be found in the southwest
which Is just about ready to commence
taking gas from the leases Of the com
pany. Some of this gas is very rich in
gasoline and the profits Of the casing.
head plant will doubtless compare IA.
worably with returns resulting from
the sale of its daily runs.
To spend hundreds Of thousands Of
dollars for steel storage at time when
oil was a drug on the market and no
one knew when the over.production
would end, and national finances in a
most uncertain condition, required con.
siderable nerve on the part of men al
NOS, new to the oil business. and es-
recially against the advice OF older OPP
orators.
The Gates Oil Company Is capitalized
Of 500, 600 and has the following splen.
lid BOARD of directors: b. A. Simpson
P. c. Dings, Mark Kirkpatrick, Frank
s. Gates. C. f. Sykes, Dave Daube and
Otis n. Smith.
The present sale also serves TO EN-.
phasize another notable success made
oy another local oil company. The Ex
tension Oil Company was organized
about one year ago under capital
Of 100000, to operate leases in
The southeast extension. Although
this company has had production for
less :han a year, it has under the man
lgement OF its president ID. c. Fitz-
gerald, made a record which might be
envied by any other company. 1t has
today about forty producing wells with
4 settled production close to 1000 bar
-els, is out OF debt, and is today paying
I handsome dividend to its stockholders,
Associated with Mr.. Fitzgerald in the
iirectorship are l.. II. Love. r. c. Dings,
Honor Hinkle and 3. A. Simpson.
Latest news from Washington, d.
c., indicates the treasury department
nay hand down a ruling to the effect
hat invested capital Of oil companies
1r the purpose Of taxation under the
ycess profits law shall be determined
by actual appraisement Of the assets