The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-10-30

is 10 show the various factors which /
enter Into the costs of oil 10 him
The main fact Is that the Sew York
rrhner found It cheaper TO refine
Mexican oil than he did 20 refine
Continent OIL believe that
t1" price Of 800 per barrel was a
prIcc which was just shade above
tu" value establish j by Mexican
oil. Mexican oil had shade the
best NJ II IN the competition
Now that tho question naturally
arises what docs all this Ayall2
What IL all this 20 us7 u u our
duty % help Ourselves. Let uH look
IA" situation over and see what can
bo done.
During the var an application
was made before the interstate com.
mcrco cOmn'k ,ion FOR an increase
ln the gathering charges FOR OIL
An incrcaBs Of cents hor barrel
was granted. In yicw OF the com
petition which we havc been meet
ms. who paid that = cents 60 thc
pipe lineHf How much docs that
DDnts roprcscnt7 n ls an economic
1ot that the producer ubsOrbs The
spread between the consumer ard
himself so we producers paid that
crnts con each barrel produced
and delivered by us During the
past ulue months the Prairie pIpe
Line company has handled about
t1,O0O,OOO barrels upon which they
have received this additional s cents
granted during the war. This
amounts to $5,i20,O00 which we
producers have paid 10 them. AlH
IN nine months I do not wish to
hold the Prairie Pipe Line company
Up 40 an csA dOer at all wish
10 direct your attention 10 the fact
that the people who are at fault are
the fellows who pay the bill. We
are asleep on tho Job How much
Of that 100000 did you pay2 That
is the question. How long are you
going tn make this contribution .
Now Just because YOU run your Oh
10 aumc other pipe line, do not
mink that you escape this charge.
You must not deceive yourself by
making this mistake. You pay Il
just the same.
Another item In the list Of costs
ls the plpcagc charge TO Now York.
That affects us greatly as / have
shown above. That Is the really
big Item. The government has made
pipe lines common carriers. Tho
pipo lines are subject to the rules
and regulations approved by the In
tcrstate commerce commission as
well az the rates charged for trans
porting the oil. Pipe lines have
been common carriers for approNi-
mately I : years. Up to the present
time, I do not know OF any single
case whore they have operated In a
common way. The reason Is that
tho rules and regulations are un-
reasonable as we'll as the rates
charged Tor the service. You will
IA IN fttF iuf
mcrce commission allows only n rea-
sonablc return on the Investment for
services performed by common
carrier
wish TO direct your attention 10
tho item ~ commission which
have placed at 10 cents per barrel
which the middleman receives for
selling the oil. This Is an item
which ought to be subject to reduc-
tion.
As you suggested to me In our con-
versation the other day. IL would be
"a good move for our association TO
secure what assistance we can ask
tho Interstate commerce commission
to start an inquiry into the reason
ableness OF the rules and regulations
OF common carrier pipe lines. Also,
To inquire into the reasonableness
OF the rates published in their tariffs
am OF the opinion that such Il
| move was started some time ago,
hut for some reason was dropped.
| believe that with some pressure
brought TO bear by us, that this
matter could be opened up,
Can our association not get the
assistance OF the Mid-Continent as
| sociatlon aud all associations ar
fccted by the present situation and
petition the Interstate commerce
commission for relief Tho farm
ers did, and secured for themselves
a big reduction in railroad rates,
thus securing for themselves the
additional price for their products
on the farm. The situations are
identical, the arguments the same,
the result will be that we will re-
duce tho spread between the pro-
| Queer and the refiner and the du-
ference will be for our benefit