The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1921-07-19
Oil Men Undecided on Next Step to Meet
the Decision of Congress; Watch Mexico Tax

Just what the next step to be TAX
en- By the oil men to prevent further
decrease in market quotation will be
has not yet been determined. The ac-
ton Of the house in placing the oil on
Tie free list has dealt a severe blow
10 this section. of the country as weA
as the American oil fraternity in gen.
eral It has not teen the blow which
comes from disappointment, for the
attitude Of the administration prior TO
the vote, and the attitude OF many
New England representatives and con-
gr-ssmen from other parts Of the
country in refusing to be fair and give
protection to all parts of the country
as we'll as to the districts which they
represent, had practically plainly
shown that the fight would be a hard
cne, and that the odds were against
the oil men.
Attention is now being centered on
the situation in Mexico itself. DOUBT
has arrived in the minds of many as
to whether or not the duty which the
III
produced in that country, will remain
much longer. II il will, as the inde-
rerdent oil men hope, they feel that Il
will bring about some relief as the i'm.
pcrtation Of crude from the southern
republic will then be lessened. lnti-
nations nave been made that the MeA.
lean tax was placed as bit OF pro-
roganda work on the part Of the larg-
or operators in Mexico. to aid in COM
tatting the proposed tariff in TINS
country. The next go days. state the
oil men. who are watching the situa-
ton closely. will tell whether or not
tho Mexican government has been sin,
cere in its purpose Of imposing the
+ax or whether other interests had
the tax placed. Thus far, Presiaent
Obregon has a.ated that the tax VIII
remain. The Independents are with MN
pna there is no doubt but tnat the
recent action OF the Ardmore oil men
in delegatng one Of their number 10
nersopally assure President Obregon
+ha. the majority OF American oil men
n,e in accord with his action, VIII DC
followed by other petroleum orsanlza'
tions throughout the country IhF
larger concerns operations In Mexican
fields have displayed antagonisuc ac-
t,on against the Mexican tax. and IL
&c the desire Of the American inde'
pendents TO assure the Mexican gov
ernment that the hostile feeling exis's
merely among the few large concerns.
II Is believed by many oil men that
Tho shutdown movement inaugurateo
some time ago when oil took some decio-
a, arops will be rigidly followed out more
so than ever since the tariff propo-
s,t,on has been lost. While practically
MI the operators of Carter County
ogrse that an effective shutdown
-novement will cause the market con-
dit,ons 10 become better, neverthelcss'
MANY point out that shutdown
a, rho present time win also tend 10
he disastrous to almost nine out Oh
every ten Of the operators In the
Hewitt field They base their argu-
msnt. on the fact that the majority oil
,he smaller operators OF the Hewitt
,c,a borrowed large amounts OF none,
NJ the time oil was $3.50 per parrel
with which to develop valuable acre
ass IN the Hewitt field. They let con-
tracts for the drilling OF the wells
NJ cost OF about $4,000 per well.
while the well was being drilled the
price Of rhe crude began to drop, and
ny the time the well was completed
with an average Of about 900 barrels
which ls a good average for the Hewitt
,erea--oi was down to 81. A profit
,canno, be expected even with the wen
.prcducine, but production from the
we,l must be had to enable the opera
sors to pay the accumulated interest
on the money which they borrowed
10 have the lease developed. Incl
,dentaily practically all the income
derived from a well with OF at 81
per barrel must 60 to pay the interest
ma the apital is not lesseped to any
noticeably extent snuuld the opera
l,crs who have been made to ruffsr
liz thy drot In rude Ry reason Of the