The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-08-13

THE two features OF this program
are, as you have already been told.
First, to stop development work IN
the fields and to make tho shut
down as effective as possible; and
Second to store a substantial part of
current production"
c. c. Brown OF the Marland COM
pan,es, sprung pleasant surprise
on the meeting when lie placed at
the disposal OF producers approx
mately two million barrels OF storage
TO be used ny them In storing their
oil during the present flooded mar
ket Brown stated that the storage
wac available for Immediate use to
those producers who owned produc.
tlon In that section OF the state COW
cred by the Marland pipeline sys-
TEN. which includes Usage, Kay.
Pawnee and Noble counties. Brown
emphasized the fact that he sought
not TO discourage the building OF
tankage by producers nor would he
see fit to connect up with new pro-
duction for this storage, but the pro-
gram OF storage was being offered
TO help out producers in their pres
ent predlcament.
This Idea OF providing storage and
Issuing storage receipts of warehouse
certificates which can be used as col.
lateral, was so well thought Of that
u was decided to promote this wher-
ever possible In other districts AC-
cordlngly the Joint refiners and pro-
ducers committee referred to above
was appointed.
w. H. Gray made some forcefui
remarks IN his address before the
gathering. lie said in part, az fol
lows:
The producing industry as
whole, whether IL be Independent
or Standard, must and will Join in
this movement to restrict the out
put Of oil TO the capacity OF the
pipelines. The Industry is called
upon TO demonstrate once again
that II can take care OF itself with
out government regulation, such az
IL now being maintained over the
meat packing industry. Failure to
cooperate means government regu-
lation.
"Onc OF the fundamental troubles
with the oil industry today is that
II Is carrying too much stocks OF
crude and refined products and
tihese stocks must he reduced. From
the best data | have been able TO
obtain. the gross stocks OF crude
and refined products in this coun-
try are upward of three hundred
and fifty million barrels with an
average cost OF, we will say, s4.b0
per barrel, making an investment
which the industry has In supplies
OF oil on hand. OF sl,575,NOO.0OO
The carrying charges upon this
enormous stock OF oil on hand Is
terrific and II is eating up the pro-
fits OF everybody in the business.
This Is an unhealthy condition
and II must be remedied by reduc-
ing these stocks by at least one hum
dred million barrels. They canno:
is only at SO piece Of crude that
these stocks can be reduced. for
that Is what the average cost OF
crude will figure.
III this meeting today shows to
the world that 1t is determined to
| reduce this great supply OF crude
| on hand by cutting out development
work until such time AS these stocks
| can be reduced, II will have a tre-
mendous moral effect upon the buy
! ing public and will stabilize the re-
| fined market which softens and
| crumblcs under these drastic cuts,
Let us enter into this work OF
| curta!ling development whole-heart-
! eulN, Let US OelnOnStfale TO the
world that We are capable OF doing
II and that we are going to quilt
producing oil at n loss"
District committees for the
states OF Oklahoma and Kansas
were appointed at the afternoon
session held in the offices of the
Mid Continent oil & Gas Assn, Cos
den building. Frank Cullinan and
]. Edgar Pew OF Dallas were award
ed the task of appointing the dis
trict committees in Texas and
James Il. Elam OF Shreveport foI
Louisiana and Arkansas.
The district committees for Okla
homa and Kansas were appointed
as follows:
Brlstow district-Claud L. Free.
land, Waite Phillips and Joe sid
! well.
Muskogee district---Ira Cornelius
Cushing dlstriCt--R. c. Jones and
4 Clyde Pape.
Okmulgee district will have It's
committee appointed by the Okmul-