The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-11-25
Duty of the Prairie Oil & Gas Co.
To the independent Oil Producers

I the situation WhiCh we know now
! cxiets in'regard 10 runs ana deliver I
les ~ major pipelines of the Mid
| Continent field.
/ whom the stock Of the Prairie
/ OIL Il Gas Co. was held In the vaults
| OF the Standard oil company OF New
/ Jersey 1t was no more or less than
! buying agency for the Standard OH
| company OF New Jersey II owed its
/ duty purely and simply 20 its
/ parent company and its policy
/ could be, and was directed by
/ the Standard OIL company OF New
/ Jersey. The Standard Oh company
| of Now Jersey was o refiner and
markctcr OF crude We know that
! this great reflner, and for that mat
ter, all OF tho refincrs are going to
buy oil as cheaply as they can get 1t
and make as big profits on the man
| ufactnrcd product as they can, but
| when "A company assumes the role
/ OF broker, IL owes "A duty 10 thu
customer who sells II the product
that II brokers, as well as TO the Gus
toner who buys the product.
'If the Prairie oil 4 Gas Co IS no
more nor lcss than aH agency OF the
Standard OIL company and It's vari-
ous former Subsidiaries for the pur-
chase OF oil. IL II permits these com
which they are 20 pay for its oil,
which 1t brokers. the purpose OF the
decree Of the supreme court on May
10, 1911, has not been carried out
/. and 1t stands in the position of being
In contempt of that decree, which we
: are sure the officers of the company
do not desire to be. II ia not my
? purpose TO charge the officers OF the
, Prairie oil ~ Gas Co. with wilfull in
OF the supreme court. | know they
| would not do so. However. desir-
Gus they may he OF complying with
this decree they may, nevertheless,
find themselves tn contempt OF 1t il
they permit the policy of their com
, pnny TO be dictated by the parent
, company, and its subsidiaries.
/ Let me read you part OF Section
/ Of that decree and then you will
know what 1t commands them to do
The defendant named in Sec
. ton OF the decree, (Prairie OIL
x Gas Coz, It's officers, directors.
: servants ana employees are en-
Joined and prohibited from contin-
uing or carrying into further ef-
feet, the combination adtudged
Illegal hereby, and from entering
. into or performing any like com
: htnnttOn Or conspiracy, the effect
= of which is. or Will he to restrain
commerce In petroleum or its
= products among the states, or in
u the territories or with foreign ma
tions. or by making any express or
j. Implied agreement or arrange
+ ment together. or one with the
9 other, like that adjudged illegal
= hereby relative TO the control or
management OF any OF said cor
e porations, or tho price or terms of
Il purchase, or OF sale, or the rates
y OF transportation OF petroleum or
It's products In Interstate or inter-
national commerce, or relative 10
e the quantities thereof purchased,
" sold transported, or manufactured
"A by any OF said corporations which
y will have a Ike effect In restraint
OF commerce among the states, in
y the territories, and with foreign
IL nations to that of the combination,
l. the operation OF which is hereby
X enjoined."
81 Under the terms OF this decree
le the Prairie oil & Gas Co, was com
III manded. directed and rcstra!ne,
from permitting the standard O
to company of New Jersey and tn
I'd Standard Oil company of Indian
n from directing or debating 1t
policy Under this decree. IL coul
- ibl any lbubtI bttOIlH lne nltE
as agent of these two corporations.
le was its duty to at once assume
IL new role in the industry and tha
g. was as the broker for the produce
n as well as the broker for the buyc
le and to maintain prices which wer,
ne in so far as was possible, as fair {
ss the producer as they were to tn
er consumer of the raw product,
n, 1T is not a question with tn
al Prairie on IL Gas CO., whether G
not the Sinclair OIL company Is put
u ting oil in storage. II Ii collaboratt
t. with the Sinclair oil company an
of the Standard oil company
Id. Indian, In the matter of price maR
on ing, then the men who do II. violai
D. the decree OF dissolution and al
he themselves liable to the penalti'
e. which the court may visit upo
OF them,
els If the Prairie OH & Gas Co.,
p selling its oil in storage at "A le
NJ price than this oil cost It.. the
this fact would be and Is eviden,
ne tending to show Jhat it does NJ
W. control the price making, but ALLOW
ne the Standard OH company of Ne
ng Jersey and the standard OH con
X pany OF Indiana 10 make the
II prices for 1t. on the other hanH
ie- it is selling large quantities of tn
lc- oil which IL has In storage at
ng much higher price than the post,
sis field price, il is evident that III
ng stored III is being used to bear Il
market and compel the producer
ISL sell his current runs at a low pric
OF To What Extent Is the Prairie on
The Gas Co, Drawing Upon stocks?
The We find that in August the ru
nat OF the Prairie Pipe Line compal
OK averaged 1880 barrels per d.
nd Whale lts deliveries averaged l76,9
9Th barrels per day. This represents
Dsc difference OF approximately $50
M barrels per day OF east-bound d
Ing liverles over runs. In Septemh
lily the runs Of the Priarie Pipe III
ric average 1+3.900 barrels per d
ce while its deliveries averaged l9t
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