The Kevin review. [volume] (Kevin, Mont.) 1922-1929, 1926-04-01

OrgbhlZdtlOn OI the Summit on
company, with fully subscribed ca.
pitalization of $500, 600, for the purpose
of actively entering the oil business in
Montana and other states, was an
nounced in Great alls Monday BY
ulius G. Peters, president of the new
institution. The announcement was
made by Mr.. Peters following his re-
turn, Sunday evening, from New ork,
where the final details in connection
with the organizing OF the new concern
were completed last week.
Mr.. Peters is associated in the com
pany with New York capitalists and
will be actively in charge of its bust
ness and operations here and else
where. Offices will be opened imme
diately at 4S3 Ford building and the
company's headquarters will be locat-
led here permanently. The company as
yet has no field holdings in Montana.
but it is the intention to acquire prop
critics and to enter development ouer-
ations during the present season.
The company made its initial entry
in the oil business last week when Mr.
Peters, en- route here from New York,
attended an auction of Usage lands in
the Burbank, Okla, field and pur-
chased two desirable tracts. The sale
attracted much attention among mid.
continent operators and the purchase
price of many tracts ran into large
figures. One quarter section was sold
for $1,7OO,OOQ ......
I'VE intend to avail ourselves of any
Montana opportunity that offers, Mr..
Peters said in announcing the organi-
zation of the oil company, "and it is |
probable that we will acquire field in
terests here. The price of northern |
Montana crude oil and the prospects
for improvement are legarded by some
eastern investors as comparing some
what unfavorably with some fields in
other states, but in my opinion the
only correction needed is an equitable
adjustment of freight rates.
Il would not say that the freight
rates in effect on Montana oil into the
Twin cities should be reduced, but if
that is impossible | believe that rates
from the mid-continent field into the
big Minnesota market should be raised
so as to correspond with what the
Montana producer is compelled to pay.
AS the matter now stands, Montana
is inconsistently penalized by it's geo.
graphical location.
"The Twin cities furnish the logical
outlet for Montanas surplus crude,
but that market now is entirely sup
piled by the mid-continent field. BY
mid-continent's location Z
with Montana's in that connection. l
think it is apparent that an equitable
adjustment of rates would establish /
the Twin cities as a natural territory
for the distribution of Montana petro- t
leum products,
Il am informed that the needed adj
iustment would be agreeable to the af-
iected railroads, but a general realiza-
ion of the situation will be necessary I
before correction can be realized.
support must be behind
any movement that has as its object 5
md adjustment that will give north
srn Montana crude it's natural outlet
Mr. Peters stated that oil operators y
n the mid-continent and other fields
ire extremely optimistic over the out d
ook for the oil industry. Conditions +
Lffecting the market are favorable for a
continued prices that will make for
of operations. Great guam !,
tiles of crude now are being taken out T
ong-flled storage in the mid-con- )
inent field, Mr.. Peters said, and con-
as compared with production u
ives the industry a favorable situa- :
ion. Q
The Summit Oil company is the
bird launched here by Mr.. Petrs
Ie was the central figure in the or
aniation of the orgnal Homestake Oil a
which to date has paid more Il
han $50 per cent in dividends. This q
ompany was among the pioneers in
he Cat Creek field and now is among :,
he more important producers there.
Following the organization of the
riginal Homestake, the Homestake =
Exploration company was formed and |
egan operations in the Kevin-S Sun
urst during the early days of the field !,
he Exploration company is among