The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-07-11
Harry Smith Brings Report
From WdshingtOn

Harry NJ, Smith, secretary OF the
Mid-Continent oil X Gas Assn. re-
turned from Washington where he
assisted the committee OF the Usage
Oh Gas Lessecs Assn. In presenting
the attitude OF the operators with
regard 20 the ruling OF the depart
ment OF the interior on the price
basis Of the payment Of royalty In
the Burbank pool. The principle
arguments were made by Judge
Samuel w. Hayes OF the Marland
company 4. j. Leahy and
Smith. the latter two representing
the Osage committee. II was urged
that the department could not leg
ally prescribe any different rule for
tie Bur bank pUUi man obtains FOR
Usage nation as n whole. because
tho same form Of lease was used
throughout and II proves that un-
less the operator actually receives
a higher price he may settle upon
the basis Of the highest posted mar
ket price Of the Mid-Contineut
field. II was urged that the high
est posted market price mcars the
price at which the major portion OF
the oil in the Mid-Contiuent field
finds a market which is 81 and
that all other prices are either pre-
mlums or have limited application
and that the oil Of the Burbank
pool, with the exception Of n very
small portion Of 1t. Is unable to find
market at SECS. That, there
| fore, tho commissioners letter OF
February i6 approving the 50 price
as the market price for Usage OF
generally was In error whom 1t at
tempted 20 apply the s2.25 price
to companies operating in the Bur
bank pool, but who are unable tC
obtain the higher price.
lt was also urged by a number oi
those present that IL the depart
ment persisted In its endeavor tC
compel payment on the basis oi
s2.25, tina. such action might lead
to a general graduation OF the price
OF Mid-Continent oil according &
gravity. which would have the ef
feet OF prejudicing the Independent
refiner and that the Indian depart.
ment, which represents all OF tht
| Indians in oklahoma, as well as tn,
| Osagcs. owed a duty 10 the othei
| tribes to not force price graduation
because IL this .;ere done the lndI
an doyalty owners throughout th'
state who are int rested In smal
wells of low gravity oil would b'
seriously preJudiced and many o
| the small wells abandoned. Tha
the Indians, as whole. would no
receive as much money for thel
royalty oil under n graded pric,
as they receive now under q fla
price.
Smith also stated that th'
committee on manufactures. which
under the chairmanship OF Senate
! La Toilette, is investlg. ding tn
price OF gasoline. will probably no
| be ready for open hearings for /
days or more because OF the fac
| that replies to the questionnair
heretofore sent out are coming Ii
very slowly. many companies re
porting that their employees ar
away on vacations and are askin
! for extensions OF time In which L
complete the answers to the ques
tiounaire.
The Mid-Continent committee o
this subject, OF which ]. Edgar PEI
is chairman, will be called togethe
in the immediate future to de
termine the character OF shown
TO be made by the Mid-Continer
Oil & Gas Assn. on the subject G
the price OF gasoline.
Judge Samuel w. Hayes or Okla
homa City and j. II. Crocker OF n
Cosden company returned on IN
same train as Smith.