The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-03-31
TULSA DAILY WORLD, THURSDAY, MARCH 81, 1921

peal OF tho import tax ON petroleum
The standard oil interests fought
against the change aud pointed out
TO the independent OH producers the
danger II the petroleum import tax
law was revoked. Without aualyz-
Ing the probable effect ON future
prices II Mexican crude was grant
I'd free and Unrestricted entry into
the United states. they worked a.
EcalouSly Tor its repeal us standard
oil did TO have the law remain az u
was. They considered the import
duty on petroleum advantageous to
the big companies which would
prove injurious to them The iu-
dependent oil producers won, and
are paying the penalty today Tor
their prciudiCcd Observation-Disclosures
10 will be recalled, however, that at
this time the standard OH interests
had not entered Mexico. To-day
practically OH former standard oil
subsidiaries have large land holdings
and a tremendous daily production
IN the south fields Of McNico. and
the same can bee said OF the CUT
Texas Empire. Sinclair. Mid-Cp,
American Tobacco interests, Ham
mond interests. Pierce -rordycc as.
s0ciation, the Dohony interests and
the General Petroleum company of
California and Others. y few "
which cannot be clisscd as minor
companies.
Report on senate Resolutions
IN 1908 bin was fram"1 ly
Mexican oil interests for the repeal
! ot tho import duty ON petroleum and
/ IT'S products which was reported ia
NurabN by tho lower house TEr
: senate. however moved with eau
ton and before taking action on the
! measure. by resolution, instructed
and authorized The chief geoloRist
/ of the United states geological sur.
vcN & willard Hayes, to immc-
diately proceed 20 Mexico and there
make. scientific examination OF
| MeNico's probable future potential
! ties In crude oil production It's Of
/ feet, II any. In his judgment on the
American eil Industry II Mexican
| petroleum was admitted free Of duty
! into the United States His report
/ to the United states senate follows.
The conclusions OF general pub
| llc interest derived from my in
spcction OF the Mexican oil ifells
are briefly as follows:
While these fields promise 10
| yicld large quantity oC crude oil.
/ the quality IS such that .t cnnrot
! compete under present couiitinus IN
| the markets Of the United St1tos %
/ Europc with the hirh grade pc
/ iroloum Of the Apalachin. Illinois or
| midcontinent fields, Further. the
! conditions nrc such mat the demand
/ for fuel oil and refined products
/ In Mexico exceed the supply avail
I able at present or in sight In the
near future. There iS PRACTICAL
/ no coal In Mexico and the railroads
are now depending on Texas. Okla
| homa and English coal which con-
! sumcs several times the present pro.
! ductiop OF oil II IL were generally
adopted as fuel. Tho increased
/ production in tho Mexican field,
! therefore will affect tho United
| States by reducing the demand fot
coal by reducing the demand foI
| high grade crude oil for refining
20 supply the local market and tc
some extent by competing In the
European market with American
| refined products.
Finally. the conditions In the
/ Mexican fields are not favorable
for the small operator. and It Is
highly probable that production and
| refining will remain In the contro
Of the very few strong companies
The geological conditions under
which oil occurs are such as 10 in
crehse tho hazards and uncertainties
! encountered in the development oI
an oil field, and II is probable that
both the difficulty OF securing q
steady supply OF oil and the ayera 20
cost Of production Will be corre-
spondingly increased"
The above report served a double
! purpose, first. causing the repeal Oi
the import tax on crude oil entering
the United States and second, In dis.
couraging the entry OF foreign cap.
ital for the development of the oil
resources OF the republic, protect
| ing the big interests already i'm
| pregnably intrcnChod there, notably
| the T.. l.. Doheny and the English
! firm OF s. Pearson a. Son. Pene-
| trating belOw the surface the fun
| significance and purpose of the
| above report transmitted to the
/ United Statcs senate IL revealed
| when It is stated that the investiga-
| tor resigned from the survey in
| 1909 to become chief geologist for
! the Pearson interests In Mexico and
| remained In that capacity 10 the
/ itue of hia death