The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-01-04
on Market ouptstion..
Eastern oil Price Cut
n .SeUere .ShOc!.

The cut in the price of eastern
oil of so cents for Pennsylvania
grade, and 25 cents for Kentucky
or Somerset, came as severe
shock to the oil men and refiners
Yesterday, as at best II was Jolt
that the business cannot recover
from until contrary market with
a boost In price far in excess of
yesterdays cut should occur.
1t was absolutely unforeseen, as
noim any point of view IL was clear
~ matter of good business sense
that the price stay as 1t has been
for the last two or three months,
but II would appear that the big
banking concerns who are loaning
money to store oil had been perusing
Roger Babson's direful predictions,
IN regard to oil. and more than that,
had been guided largely by what he
had predicted.
It was a cold blooded thrust at
a business which Mr.. Babson ought
to know Is mighty easily influenced
one way or the other, and mas
much as his predictions, when he
generalizes. have been wonderfully
accurate. the effect was doubtless
great and yet Mr.. Babson was
wrong. There are always spurts in
the production of oil with wells
coming in In all directions, and then
again comes an equal period Of dry
holes and failures everywhere. and
the entire country that Is now pro-
dhcing oil is mighty small as com
Jared with the demand and the
growing consumption.
This prediction was printed In
Sundays World, and the man VIII >
does not think that 1t has an eff ct
when sent broadcast over the coun-
try, Is mistaken. Mr.. Babson has
even predicted the weather and got
away with 1t. and has built up a
reputation as a prophet such as
never was known in the entire his
tory of the country. The psychic
logical effect among the banking in
terests who in the last analysis con-
troll the business, was instaneous
and these people have Immediately
demanded a cut in the price OF
crude, without taking into account
the fact that the oil now in storage
las cost. during the last few months
So barrel in the Mid-Continent
field, and the storagl itself has but
emptied.
Mr.. Babson does not know tina,
the psychological effect so far as
the oil producer In concerned, will
be to tighten up the drilling opera
tons, and should there be a shut
down similar TO that which pre-
vailed during the summer months
there would be another howl for
more oil, and II would require a
lot OF explanation to show where
the fault lies and who Is to blame
for these tremendous changes ir
price. which coming as they do, are
absolutely criminal and a disgrace
10 a civilized business world.
No other business men engaged
in producing a stable product would
stand for 1t for a minute, and tn,
only good thing about IL is tha
there has been no great boom, moi
have the good people of the OF
country made the mistake of goinl
crazy over the prospects for thu
future, but on the other hand tn,
two or three new pools which hav,
been uncovered recently have beer
OF freakish nature, to say tn,
least, and may go up sky high a
any minute. IL would look a
though the time to get oil wa
while the getting was good.
At every other time of "a flusl
production II has been proven tina
Bver has there been too much oi
stored away for future use. but al
ways the same old story, and tina
Is, why was the opportunity lie
slip?"