, 1921-10-14

ampiifying and discussing M sew
era questions brought up by
Georre Brimmer OF Rawiins. with
reference TO the price paid for
crsde oil IN the state and the prices
charged for refined products.
Mr.. Richardson discusses very
ably the entire situation in what
follows:
IT have read with great interest.
as I am sure thousands of others
have done. the very interesting ar.
ticies recently published and writ
ten by Mr.. Brimmer and Governor
Carey, together with editorial com
ment pertaining to the arbitrary
price paid for crude oil in this state.
1T Is a question that not only
Affects the oil producers OF the
state. but nearly every citizen OF
the state Is directly. or indirectly,
vitality interested to n much great
or extent than many of them pos
sibly realize. either directly through
stock ownership in Independent
producing companies. or Indirectly
as tax payers and more especially
in building good roads. irrigating
vast areas OF desert land and as tho
guardians of the school children of
the state, Il would become their
duty to see that a fair price is paid
for the royalty oil produced from
state school lands.
Does n Monopoly Exists
both OF Mr.. Brtmmer's articles
knowing. FIRST. thai the price is UNI
fair and purely arbitrary. and Sec
ondiy. that tho state has a lawful
remedy. are absolutely unanswer-
able. II additional and unquestion-
able evidence is required 10 show
that the companies purchasing
crude oil have an absolute monop-
oily without any competition what
ever in this state. we have II at
hand in the government report
made by the Federal Trade Com
mission and published by the United
States government in q report made
January 8. 1891. and covering 81
printed pages. showing IN detail the
absolute control Of n, the pipeline
companies. the refining company
and h purchasing Of all crude oil
In the state. An absolute monopoly
In the purchasing of crude oil is an
undeniahly, established and Official
ly proven fact.
The Result.
Last year wyoming produced
1911 900 barrels OF crude oil and
producers OF the state received for
IL rs cents per barrel less thai the
same quality of oil brought in the
mid-continent field. or about sf2.-
soS,25O less than the fair value Of
the same grade OF oil ms established
by the m~id-continent posted price.
The producers. tho state OF Wyo,
ming, the United States govern
ment. every taxpayer and the
school. children OF the state were
the losers OF this amount by this
arbitrary and unjust system OF
price fixing and the shutting out OF
an competitive buying for wyo-
ming crude u.
Let Us Be Fair.
The Midwest Refining company,
which has been recently taken over
BY the Standard Oil Company OF
Indiana. has been, and is now. a
very important factor in building
up n developing the OF
this state. furnishing employment to
thousands OF men. Great credit is
u them. and absolutely fair and
even liberal treatment by every citi-
zen and by the state government
should always be extended IL them.
1t is to BIO hoped that 1t will never
DO necessary to follow the radical
mi drastic legislation of such
states as Texas. although. as Mr.
Brimmer suggests. we have the
power to do so. Certainly tho in
dependent producers of this state
nave a right TO expect INT to look
to the state and to tho United
states government for every rea.
sonao assistance. cooperation and
protection. as the state itself and
3 government with their a
on are actually partners with the
e1tisens OF this state in producing
crude oil and no contract should be
sntered into by the state or the
gevernment- in selling their oil
wherein a special price or privilege
enacted by the state or the gov.
eminent IL the advantage and prof.
It accruins to them is paid Indirect.
~ by the Independent producers. In
other words. II the state is selling
salt Creek oil at n minimum Of
$i.eo per barrel and the independ.
producers are forced to sell
their oil. as they recently have been
noins. at 30 cents per barrel. then
u Is manifestly unfair TO the citi.
Dsns OF the state, as the premium
PAID to the state Is taken from the
Independent producers. Either ali
2 oil is worth s1.50 per barrel. or
al the oil is worth so cents per
parrel and there should be no she.
Ga privilege in price between Il
cafi1ens of the state and the state
seself. In other words, giving the
scfs q direct benefit and taking n
from the producer, because the
ssRte Is powerful enough TO demand
exart a higher price from the
purchasing company and without
the assistance and cooperation Of
me state. the Independent
eannot do so. or at least up to this
une has not been able to do 80 Il
an unfair discrimination against the
independent producers of the state
The United States Eovernment
under the leasing law, receives fron,
13h per cent to SO 1-s per cent OF
All oil produced on oyernment
lands. The government delivers
THIS oil to the rehneries at Casncr
n receives for 1t. on some ba ,is
That is not generally known. fuel
Gil of a very much lower ernyity
n a greatly inferior quality 10
supply Its sfip2 on the paciar co,.,