The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1921-07-15
Buffer to MonOpoistic
ExtortiOn is Threatened
By Mexican Importation

Failure to give the subject of Amer
lean petroleum production a thorough
study as regards its status other than
its phase as it appears outwardly
at the stage where it is offered for
sale on the market in refined form,
has caused the majority of American
consumers to gain false impression
of the great value which tariff on
the import Of Mexican crude would
bring about and as result the in
dependent producers of the country
are meeting great opposition TO the
proposed tariff on this account, an
opposition which really should not be
waged. In a petition recently sent
by tine Midcontinent Oil and Gas AS
sociation, TO the finance committee
Of the United States senate, the value
OF the predominance of the independ-
ent producers in this country as a
buffer to the monopolistic extortion
which threatens TO become greater
than ever is explained in a concise
but very true manner. 1t reads as
follows
The sixteen thousand independent
bat unorganized producers of domestic
Grade have been producing more than
half OF the total output Of the United
States. But the Standard Oil and
affiliated interests dominate the re-
fiuing industry and fix the prices at
which they purchase crude oil from
independent producers. These inter
ests are strongly intrenched in Mex
leo. By heavy imports the American
crude market is flooded. Domestic
crude brings less than it costs to
produce The domestic producer
income has shrunk at the annual rate
OF a billion dollars. His properties
are worth but quarter of what
they were six months ago The gov
ernment and the states have lost
through this catastrophe hundreds OF
millions Of dollars in income and 9th
er taxes. But the end is not yet.
The condition is ominous and the
time Is critical The independent pro-
duccr must either abandon his prop
critics or sell out at a sacrifice to
these same powerful interests. When
he does so the Standard group will
own the supply OF raw material as
we'll as the refining, Transporting and
marketing branches OF the business,
The independent producer and re-
finer have heretofore stood as buf-
fer. protecting the great American
consumer from any possible monopo-
listic extortion. But the buffer state
IS crumbling Every day that an oil
tariff is postponed brings that much
nearer a state of complete monopoly
in the oil business.
Would the Congress expect the
American consumer TO be the benefi.
ciary in such event?"
The facts are absolutely true. While
the average American consumer who
is opposing the oil tariff measure
and is urging his congressman at the
national capital to oppose its passage,
he is doing so because OF n mistaken
idea that an overproduction OF crude
oil, caused to great extent by the
Importation of the Mexican crude, will
bring a decreased price in the refined
products and benefit him as the user
of them. But when the monopolistic
power which is bound to result after
more serious Generalization OF the
condition Of the American independ'
ent producer is effected. there Will
be nothing to stem n rise In the
price Of the products as they reach
the consumer, practically inevitable
result which has occurred time and
time again.
The opposition which has been ex-
pressed by the administration to the
f, proposed tariff for the reaSon that
"the administration has encouraged
American investment in foreign oil
fields Is a serious mistake, and Is
.ustiy 50 explained in the petition.
THE United States produces 65 per
cont Of the oil Of the world" II
states. "and has done SO consistently
since the beginning OF petroleum his
tori. Her deposits are most reliable