davidaulloa/AmericanStories huggingface dataset:
Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1936-03-14
How To Figure Producing Royalties

During the past week we
were offered an interesting
bargain" in a producing
royalty: a royalty on the
Lander we'll in Cut Bank oil
field.
This we'll is rated at 1000
barrels per day and it has
actually been producing an
average, we are informed,
of better than l 800 barrels
per day. A royalty on a
well making that much oil,
worth $3.50 per barrel, is
certainly very valuable.
Let us figure out HOW
valuable, before we consid-
er the cost:
Figuring 1900 barrels per
day at $1.5O per barrel, we
find that the earning of
this well is $3.50 per day
OF that each one per cent of
royalty is earning $3.50
per day. Figuring a year of
300 days we find that 10
royalty will earn S6,750 per
annum.
When we stop to consider
that any farm in the field
on which we have purchas-
ed royalties might have had
this gusher, and the further
fact that 10 royalty was
we'll within the reach of an
average investor such as
members of this organiza-
ton, we realize the tremen-
dous possibilities of royal
ties as an investment. We
bought no royalties ON the
Lander but had we puFchas-
ed royalties ahead Of the
drilling of the Santa Rita
we'll, in this location, we
would not possibly have
paid more than $40 for one
percent on this tract of 280
acres. A return of $3.50
per day from an investment
of $840 is obviously some
thing that few investors en-
joy.
The person who fails to
buy a royalty on a farm
BEFORE the gusher comes
in seldom has an opportun-
ity to make a fortune from
investment in that pro-
perty.
Why should the man VINO
receives $3.50 per day
from his modest investment
part with it?
The answer is: Only in the
event that the sum he will
receive is; in his opinion,
LESS than the amount he
expects the property to
yield in its ultimate total
production. That brings
us to the subject of evalua-
ton.
Royalty VALUES are
based on only one factor:
tho amount Of oil IN tho
Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1936-03-14

lOuT CII1lSS D1y CVU,OOO VI
$7,200,0O0 worth of oil to
give the desired profit. We
find that the tract will have
to produce $4,000 worth of
oil per acre, to pay the pro-
fit that can be reasonably
expected. There is no lease
in Kevin-Sunburst that has
produced any such amount
of oil; Cat Creek leases
have produced MORE than
$4,000 per acre. In fact
the AVERAGE acre in Cat
Creek has produced around
$4,000. Perhaps there will
be a second Cat Creek" in
Cut Bank. Since it is with
out precedent, however, we
doubt the ACCESSIBILITY of the
risk.
An investor can take
$4,000 and invest it in Cut
Bank field with a virtual
certainty that he will get
SIS for every ST. invested,
without the risk of the Ian
der royalty, in our opinion.
He can take the same $4,000
and invest it in Kevin-Sun-
burst with a virtual GER
tainty that he will get $40
for every 81 invested. In
each case he will be Deepen
dent on an average expect
ed recovery of less than the
known average for oil fields
of Montana. In other
words, it is more likely to
be MORE than SIS to l or
$40 to l.
However, the investor
who gets any such odds will
not get the swirling speed
of the Lander gusher. He
will perhaps have to wait a
year or two for develop
ment and he may have to be
content with a lot less
than $3.50 per day of in
come at the start. How
ever, his rate of return on
his investment will likely
mount ABOVE the rate of
Lander. We happened to
check up recently on our
Ewing royalty, purchased
by our members in Cut
Bank field. We find that
it has thus far paid them
5000 on the investment, of
which 5000 was paid last
year.
THAT is the way for
tunes are made.
We have two more Ke-
vim Sunburst properties
ready for submission to our
members. Plats will be
sent out in the regular al
phabetical order unless
special requests are receiv-
ed. Such requests may be
submitted by sending the
attached coupon.
Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1936-03-14

grOunQ. Inc PRlCE may
vary, depending on the de-
gree of excitement or other
artificial elements, but the
VALUE is determined by
the one factor. One per
cent royalty means one bar
rel out of every 100 barrels
contained in a tract of land.
In other words, if a tract
contains 81 600, 900 worth of
recoverable oil, the owner
of 10 royalty will receive
10 of one million or $10,-
600, when produced.
So it is apparent that
when a man pays $1,000
for a royalty worth $4,000
he is losing money. It is
like a man paying $20.05
for a $50 bill. He receives
something of value for his
money, but not a profit.
The offer to us was one
fourth of one per cent for
$4,000. That makes 10
worth four times $4,000 or
$4,000.
In other words, until the
farm has produced 100
times $4,000, or $1,800,000
worth of oil, the investor
will just have received the
return of his investment.
This tract will have to
produce $500 worth of oil
per acre to pay out. In
view of the fact that 10
royalty is now earning
$6,750 per annum it would
pay out in less than three
years, which would seem
to be a good investment.
However, we know positive
ly that this we'll will not
continue to produce at the
rate of 1900 barrels per day
for three years.
No well has ever had such
a record in Montona oil his
tory, so it is rash to make
an investment on the basis
of initial production being
maintained for a period of
three years. 1T is true that
further drilling may in
crease this daily average
production. Two, three or
four wells may have a pro-
duction of 500 barrels per
day each, to bring the total
above the present record.
However, the investor is
not so much interested in
RATE OF RETURN as he
is interested in TOTAL
RETURN. He is entitled
to a MINIMUM of his mon
ey back plus a profit of 300
per cent. We usually fig
ure a minimum of 500 per
cent, but to accept the Mid
continent expectation of
300 per cent, means that
this 280 acres must produce
Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1936-03-14
THE WAY YOU SAY 1T

Dad, while visiting his sons
room at college noticed a lady's
slipper over the door. He told son
that while he attended college they
always had a horse shoe hanging
over the door. Said SON to dad:
why, dad, that's a hoorse shoe. -
SEND A CONTRIBUTION
To THE SUNBURST BADGER
The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1936-01-23
Ed. Buckley
Chairman of
Scout Council
Boy Scout Group Elects New
Heads; Hold Interesting
Meeting Last Week.

Edward Buckley, athletic coach al
the Ely schools was elected chairman OF
the Ely Boy Scout Council at the an
nual meeting held here last week G
E. Robertson was elected vice chair
man; William Jones, commissioner
Ray Hoef1er, secretary and John Drag
avon, treasurer.
Reports from officers were given
showing Scouting in Ely on the in
crease as several more Scouts were en-
rolled this year over last Ray Reigel
made his report on the Headwaters
Area meeting. Mr.. Reigel also viii be
in charge of the school for scout Off
Gals and scoutnIaSters.
A new troop has been organized IN
winton by G. E Robertson. Gehart
Gilbert is in charge Of this troop.
william Jones made his report on
Senior scouting showing this branch
very active.
A committee was named to have
charge Of the annual Scout Week do
ings in February. The committee is
composed of Sigurd Olson, c. E. Robert
son and Ray Baribeau.
The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1936-01-23

u. S. Forest Service Laboratory
Gives Useful Information
on Fuel Wood.

The forest products laboratory Of the
U. S. Forest Service at Madison, Wis,
has figured the heat value Of wood as
compared to coal. The laboratory has
also sent out instructions as to cutting
and piling fuel wood In regard to the
latter the department says:
The cutting Of the years fuel supply
is generally a sparetime job on the farm
during the late fall and winter months.
Uneconomical methods of handling
the wood after cutting, increase the cost
and waste the product. Fuel wood is
usually handled in two ways; it is cut
and split into cordwood lengths of 4
feet and piled TO dry, or it IS cut and
split into stovewood lengths and thrown
into piles resembling small haystacks
The latter system is not the best as il
prevents the chunks on the inside OF
the pile from seasoning and they may
even rot before they are used.
The stove lengths as well as the cord
wood should be loosely piled so that all
can circulate around the sticks. The
piles should be located in airy places in
order that prevailing winds may blow
through the sides of the piles rather
than through the ends so that rapid
seasoning will take place. In Other
words, the lengths Of the pieces should
be piled parallel to the direction of the
prevailing winds.
In wood, air dried until it contains
only Is to 20 per cent moisture, ont
cord go cubic feet) of hickory, oak
beech. birch, hard maple, ash, elm, 10.
The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1936-01-23
Forum Discusses
Fdscism Tonight.

What Has FaScism TO Offer2" Is the
subject Of the third ADULT Education
Forum meeting tonight Frank Bour-
gin, who has made a rather intensive
study of Fasicism during the past four
years viii lead the discussion.
The subject is Of particular Interest
since Ogden L. Mills, former secretary
of the Treasury under President Hoov-
er, charges that the all powerful gov
ernmental machine under the New Deal
IS leading TO Fascism" Mr.. Bourgiu
will answer the question. rs the New
Deal Fascist"
Mr. Bourgln's lecture viii explain why
democracy succumbed to the forces Of
dictatorship in Germany and Italy, and
why the same tendencies operate today
throughout the western world
Has the worker gained under Fas-
cism or has he been sacrificed 70 the
forces Of Big Ownership" why has
Mussolini gone to was against the ad-
vice Of the Fascist Grand Council and
the Italian King?" What does Hitler
plan TO do with the Catholic church?~
Does Fascism hold the key 20 the next
WARP" These are some Of the questions
that Mr.. Bourgin VIII discuss ar the
Forum meeting.
The meeting VIII be held as usual IN
Room lo6 Music Room Of the Mem
orial School building al 7:30 P. II
sharp. The meetings are open 70 the
public.
The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1936-01-23
XMAS SEAL SALE
TOTALS S374.48
All Returns Not Reported by
Individuals According to
Local Committee.

While few Stragglers have failed to
remit for the sheet of Christmas Seals
sent them with the request of the re-
turn Of the seals or the money, the 1885
sale is practically closed in this city, ac-
cording to Dr.. Q. w. Parker in charge
of the campaign.
DR.. Parker reports the receipts Of the
sale in Ely as amounting TO S3T4.48 to
date. In all probability the total sales
when all returns are in. viii amount TO
nearly $500.
The funds raised by the Seal sale GO
towards paying expenses occaSioned in
the fight against tuberculosis The
tuberculor clinics held in this city sew
eral times a year are financed by the
seal sales as well as those held in other
places
The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1936-01-23

Joseph Agnich, Resident Here
Since 1888, Laid Away
With Signal Honors.

The impressive High Mass ceremony
marked the funeral of Joseph Agnich
at the Catholic church in this city on
Monday morning.
The services were conducted by the
Rev. Frank Mihelcic, assisted by the
Rev. Father Jershe of Tower and the
Rev. Father Spehn of this city.
The funeral was attended by church
filled with friends, relatives and ac-
quaintances, gathered TO pay their last
respects to one of the oldest residents
of this city. The floral offerings were
many and attested to the high esteem
in which deceased was held
Honorary pail bearers for Mr. Ag-
Mich were supreme officers Of the South
Slavonic Catholic Union, now in the
city for the annual audit of the books
Of the Union at the home Office on
Harvey street. President Paul Bartel of
Waukeegan, H., headed the group made
up of John Kunlse of Lorain, Ohio;
Janko Rogelj of Cleveland, Ohio; Frank
Vranichar of Joliet, H.; william B.
Laurich Of Chicago, and Anton Zbasnik,
supreme secretary; Louis Kompare, as
siStant secretary; Louis Champa, SUI
preme treasurer, and Joseph Mantel,
trustee, of this city
Active pallbearers were Joseph
Spreitzer, Charles Merhar, Joseph
Champa, Joseph Palcher, Frank Zaverl
and Mako Slogan. A short eulogy on
the departed first president Of the
Union, Joseph Agnich, was given at the
cemetery by President Bartel- The re-
mains had been prepared for burial at
the Fenske Mortuary and interment was
in the Ely cemetery.
Joseph Agnich was born in Chern-
omelj Krain, Jugo-Slavia, 81 years ago.
He died Wednesday evening at his
home, DAG West Chapman Street after
protracted Illness occasioned by old
age
He emigrated to this country in 1880
The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1936-01-23
LEGION GROUPS
WILL ATTEND
fame BANQUET
Hall of Fame and 9Th District
Convention to be Held In
Duluth Saturday.

Several from this city in addition to
the regular elected delegates to the
Eighth District convention of the
American Legion and the American
Legion Auxiliary to be held in Duluth
Saturday afternoon and evening.
o. J. McIlvenna, district commander
Of Virginia will preside over the de-
alterations Of the Legion meeting and
Mrs. Jack RIVAL CT Hibbing, district
president, will preside over the Auxil-
iary sessions.
Harry w. Davis, past commander Of
the David visited Post, Duluth. has
been selected for POSTMASTER of the
twelfth Hall of Fame banquet to
be held at the Hotel Duluth in the
evening at which National Commander
Ray Murphy Of Ida Grove, Iowa, will
be the guest Of honor.
During the dinner the twelfth mem
Der of the Hall of Fame will be an
nounced chosen Wednesday, yesterday,
from a slate of fifteen nominated by
representative organizations Of Duluth
where the David visited Post origina-
ted the Hall of Fame idea eleven years
ago.
At the banquet, Helmer E. Wahlgren,
commander Of the visited post will
give the address of welcome and Dean
Gilbert K Good, chaplain Of the post
will offer the invocation. The post
band, winners of the state band con-
test for several years and now holder
Of the championship title will play dur
ing the dinner and will furnish a
taibIeau at the close of the banquet
Gold Star mothers Of the district who
will be guests Of the post, distinguished
guests, members of the Hall of Fame
will be introduced at the banquet. The
Seguin Sisters of EveIeth will sing
selections. The new members of the
Hall Of Fame will be announced and
will be presented with the Legion
plaque embIematic Of membership in
this immortal body.
Mrs. z. E. Vigen of Fairnont, state
auxiliary president, will extend greet
ings on behalf of the state Auxiliary
and Harold N. Rogers of Minneapolis,
The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1936-01-23
ORCHESTRA IN
fine PROGRAM
Municipal Orchestra Plays to a
Large and Appreciative
Audience Sunday Night.

Miss Mary Hutar captured the
audience as the guest artist for the Ely
Municipal Concert Sunday evening at
the Washington Auditorium where she
sang "Allahs Holiday" from the must
cal selection "Katinka" by r. Friml, ac-
companied by the orchestra.
Miss Hutar was recalled and was
forced to respond to an encore. IN ad-
dition to her selections the orchestra
played eight numbers emphasizing
modern music and was forced to re-
spond to an encore after playing the
Song of the Bayou" which particularly
seemed to please the large audience
The orchestra rendered in a most
artistic manner che difficult selections
which embodied almost every movement
of the musical scores. Orchestra offer
ings were: Naughty Marietta Selec-
tion,' Down South" Three Shades of
Blue" Metropolis" Manhattan Moon
light" Song of the Bayou" The Wo-
man in The Shoe" and The Merry
Widow Fantasy" The program in full
was given in these columns last week.
Prof. Frank " DiNino is director of
the orchestra composed of music lovers
who are continuing their studies in this
manner. The concerts given by the
Municipal Orchestra as well as those of
the Municipal Band of which also Prof
DiNino is the director, are free TO the
public and are given by the orchestra
The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1936-01-23
y. A. Rothman Elected
Commercial Club Head;
January 28
Banquet at Forest Hotel TO
Feature Installation of
New Officers.
CAREY POSTMASTER
DR.. Crawford Grays Speaks
on Program Arranged
for Gala Event.

Without a doubt the address By Dr.
Crawford Grays at the installation ban
quet of the Ely Commercial Club On
Tuesday evening viii be one Of tn
features Of the evening. Dr. G-ays
spoke at the annual meeting Of the
Vermilion Range Old Settlers ASSocla-
ton here last summer and his ad6ress
was pronounced one Of the best ever
delivered in the city.
The committee having the speaking
part Of the program IN charge prevailed
on Dr.. Grays TO again appear here and
feel assured that this part 70 the ex-
cellent program prepared for the coca
sion will be a feature Of the evening
long 10 be remembered
The banquet and installation viii take
place at the Forest Hotel and IS sched-
uled for tbs o'clock
The public is cordially invited To Sc
cure tickets for the banquet from msm-
bers Of the committee or from Secretary
Hoefier at the Community Center. The
committee in charge Of the banquet and
accompanying program IS made Up Of
Dr.. Geo. T Ayers, chairman; John
Buccowich, E W Hanson, Frank v.
StrukeI and Peter Schaefer
Invitations for the event have been
mailed with a return card stating the
number who VIII attend for each inv
tation sent out The committee hopes
that all viii I'LL in the return cards 81
once in order to give them a line On
how many viii be there and how many
to provide for Smrekar'S Orchestra
will furnish the music for the banquet
and the dancing that viii follow.
ThoS. j. Carey has been secured As
toaStmaster for the evening and q pro
gram Of vocal and instrumental mum
bers viii be presented besides short
addresses by the incoming and outgO-
ing officers The officers 70 be install
ed are:
President-J. A. Rothman-
First Vice PreSident-Ben 8 Rich
ards.
Second Vice President-Joseph Yer
anth
Secretary-Ray Hoef1er.
TreaSurer-George Somero.
The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1936-01-23
Basketball and Swimming
Contests Here Saturday.

The Biwabik High School girls SWIM
ming team and the local mermaids viii
clash in the Memorial natatorium on
Saturday afternoon at 200 o'clock in
what is promised TO be hard fought
match
The visitors come with a record OF
many winning events to their credit.
The Ely girls also have record TO
maintain and the meet presages an aft
ernoon of spirited events
That evening, beginning at Tbs, the
Ely High School and the Biwabik High
School first and second basketball
teams viii try conclusions in the local
gymnasium.
The first game between the second
teams viii take place beginning at
tbs. The evening promises eventfu
periods for both teams and the specta-
! tors.
The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1936-01-23
new OFFICERS OF
LOCAL LODGES
ARE INDICTED
Fine Ceremonies Marked In
stallation of Odd Fellows
and Rebekahs.

Officers for Ely Lodge No. go and
Vermilion Rebekah Lodge No. 8. we're
installed Friday evening before an at
tendance that filled the lodge room to
the doors.
The work of installation was done by
D. D. G. M. John Doig of Virginia, as
sisted by Major Arthur Gunther as
Grand Marshall, Clarence Wilson Dis
trict Deputy Grand Warden and vii
liam Bowden, Grand Chaplain, also of
Virginia, and James Miglio as Grand
Secretary and Treasure, of this city
Following the installation ceremony,
the degree team of the Rebekkah lodge
under the direction and instruction of
Richard Hodge as drill master, gave an
exhibition drill which captured the
audience and was pronounced by the
visitors present as the most complete
and well put on drill they had ever
witnessed
The teams were attired in their hand
some new uniforms and demonstrated
the entry, the escorting Of the Rebekah
officers to their several stations and
the retiring of the body from the lodge
room and its reentering after divesting
themselves of their uniforms and taking
their seats.
All was done with a pprecisioa and
snap seldom encountered in drill teams.
Music was played for the marches by
Mrs william Palmgard. Talks were
made by the installing officers The in
coming and outgoing officers also made
short talks. Richard Hodge acted as
chairman.
Following the talks and installation
the ladies served a most delecJable
lunch after which cards and games O.
cupied the attention of the guest
groups The following officers were in
stalled for the Odd Fellows:
N G--Otto Sarkipato.
" G-LaWrenee Ludtke
Secretary-LeSlie Nicholas.
Treasurer-Olof Knutson
r. S. N. G-Andrew Luthanen.
l. s. N. G-Jotn Nordstrom-
r. S. " CD. E. Strom.
l. G. " G-ErneSt A Dargis.
The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1936-01-23
Railway Inaugurates
Pickup and Delivery
reight Service Here
Store Door Delivery of Less
Than Carload Lots in
New Service.
TO PICKUP FREIGHT
System Started Monday by
Arrangement with Ely
Draymen.

Commencing Tuesday morning, the
Duluth, MiSsabe & Northern company
inaugurated the stOre-door pickup and
delivery service for less than carload
shipments of freight in this city.
The local dray lines, Frank Sershen,
Ernest Maddern and Ed Strom have
entered into contracts with the COM
pany and will render complete service
from store-door to store door, except on
certain exempted articles specified in
the tariff
Agent Hanson has complete copies OF
the tariff and can explain the operation
of the service. The new tariff also per-
mits the payment of allowances of five
cents per hundred pounds TO shippers
under certain conditions in case the
shipper or receiver of freight elects to
perform his own pickup or delivery ser
vice to or from the freight depotS OF
the company.
The new service is applicable on the
local line as well as on traffic inter
changed with other lines. If there are
any questions regarding the arrange
ment which cannot be answered by the
local agent, patrons are requested TO
get in communication with Traffic Man
ager Ross in Duluth by letter or t.le-
phone and he will send a representa-
tive TO explain the matter or clear up
the point in some other way.
The service is a new departure in this
territory and will needs be perfected
gradually There are bound to be some
bitches in the arrangement and the
company asks patrons to bear with
them if the service is not all than can
be expected during the early days of
its operation
The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1936-01-23
BIRTHDAY BALL
FOR PRESIDENT
Ranger Club Launch Plans for
Annual Ball at Washington
Auditorium, Jan. 80.

The Ranger Club has decided TO
sponsor the Birthday Ball for Presi-
dent Roosevelt this year in Ely and the
same viii take place on January 30th.
at the Washington Auditorium.
The birthday of President Roosevelt
is lent for the occasion in every city in
the country. The ball is given TO raise
funds for the Warm Springs Founda-
ton for the prevention and cure of
infantile paralysis
Seventy per cent of al money raised
by the events staged throughout the
nation viii stay at home. In the case
of Ely the 20 per cent is allocated to
the State Hospital for Crippled Children
in ST. Paul
Everyone is asked TO buy tickets for
the dance for which Johnny Smrekar
and His Orchestra viii furnish the
music.