davidaulloa/AmericanStories huggingface dataset:
Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1938-09-24
AUTUMN FINDS
WILDCATS ARE
MORE NUMEROUS

The first day of autumn, Friday,
saw the greatest number of wild
cats of the year active in various
parts of Montana. Several other
projects are resuming or just start
ing, in the effort to find new pools
of oil and gas.
In northern Montana drilling IS
proceeding at Whitehall in NV
NEA NWA 1O-36N-50E, after
conditioning the hole.
On Poplar dome, the we'll called
Fulton NO 1 was merely a vail
dation hole, the Journal is inform
ed, and 1t will probably be taken
over by Floyd Anderson, the drill
err. Tha leases were taken by Fred
Francis.
At Harlem, Montana Gas Corp. is
drilling below 1900 feet on its
Wayne Creek test, in c NWA
SEA 6-32-24E, seeking gas for
Harlem.
Near Chinook O'Keefe & letter
STAN No. /, CSL SWA SEA 10
31N-18E, on Tiger Ridge, is drill
ing with three tours, reported be-
low $50 feet.
III is reported LndJ WOrk is 10
start shortly on Hagan structure,
southwest of Cut Bank oil field,
Materials are reported being NOV
ed by Cut Bank sponsors of the
test on the sharp-dip structure.
At Landusky, on Bull creek struc-
ture, Treasurer State Pool Govern
ment No. 1, C SEASWA 2-24-N-2S !
E is drilling at 800, #. after having
started new hole. The first one
was lost at around $50
Drilling has not yet started on
the Hoerr well near Whitefish.
The GenOu test of Security Pc
troleum. in C NEA NEH 23-36N-
BE, is still shut down, with the
hole full of water from the Sun
burst sand, at 1880 feet.
In Central Montana the Hunt
wells on HobsOn dome are report
ed active.
On F1atwiIlow structure, near
Brundage Mink No. / SEA
NWA 35-13N-25E, on Elk creek.
Is spudding.
In southern Montana, BrOadview
dome test, NE NE ASWA 18-3N- |
25E, is drilling in lime at $500 I
'eet.
Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1938-09-24

takings are assured to all concerned
and particularly to those producers
who are entirely unable to protect
themselves. No conceivable form
of State Compact can have. nor do
State Commissions have control over
all of the factors involved. Only
Federal Agency could be vested
with such power. Therefore:
THE PURCHASING COMPAN-
les MUST REALIZE THAT THEY
ARE REQUIRED IN SUBSTANCE
TO DISCHARGE A PUBLIC DUTY
AND OBLIGATION, THE ALTER
NATIVE BEING THAT EITHER
PROBATION WILL FAIL OR FED
ERAL CONTROL MUST BE HAD,
OR THAT BOTH WILL RESULT"
Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1938-09-24
SOLUTION Of
PROBLEMS IS
Up TO BUYERS

The subject of proration, still fire.
quently discussed among Montana
oil men, is revived in a 'Memoran-
dunn on PROBATION" issued by the
Independent Petroleum Association
of America, which concludes that
the alternative of proration is rea-
lization by purchasing companies
that they are required in substance
to discharge a public duty and obi
cation.
The text, which has been re-
ceived by Montana directors of the
IPA, follows:
MEMORANDUM ON PROBATION
I'D Subject to reasonable and
necessary practical limitations, Pro-
ration rests upon the fundamental
proposition that each producer
each day, wherever situate, will
receive his ratable share of the
days market and, with broad adj
justing factors taken into account
will also receive the prevailing
market price. This is of the ut
most importance to the indepen-
dent producer who is wholly de-
pendent upon others for his mark
cts and the transportation of his
oil.
"(2) But in order to effectuate
this, it is necessary to have ade-
Quate control of
(a) Imports;
(b) Storage Withdrawals;
(c) Fair and equitable allo-
cations among the States;
(d) Fair and equitable allo-
cations among pools within
the States
(e) Ratable takings within
pools within the States.
"(3) But neither the State Com
pact nor State Commissioners pos
sess any power at all so far as (a),
OBJ, (c), and (d) are concerned.
The State Commissions may possess
only limited power so far as (e)
is concerned-which is to say that
in the opinion of some if one pur-
chaser in a common pool reduces
his purchases then state regulatory
bodies cannot affirmatively redis-
tribute the remaining allowables on |
a ratable taking basis. If this |
opinion is correct it would follow |
that such State Commissions could |
only restrict the allowable Of all |
PAOUuSCAS " INC AONSA u the lOWeSl /
percentage being taken by any pur- |
chaser from any producer or pro-
ducers in such a pool On such a |
theory this would constitute an |
unsatisfactory and negative form
of. control, and its exercise would I
only drive purchasing power away
from the pool, and in many cases
out of the state where any such I
pool might be located.
Therefore, it becomes apparent /
that PROBATION is something of a /
paradox-we control production |.
without any Public Authority which
is empowered to see to it that |.
equity and fairness and ratable
Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1938-09-24

absolute demand for ready cash. The
operator has no steady market for the
oil, so the royalty cannot be used as
bank collateral. So he has to sell it.
When he came to talk with us, we had
to reduce the royalty to q basis of the
value of the oil possibly In underground
storage beneath this 400 acres. The
price agreed upon was not based upon
the earning. Instead, it was based
on the probable oil content of the 100
acres.
On the basis of our purchase, this
tract must produce 400 barrels of oil,
worth 81 per barrel, to each acre, to pay
out. III the tract does not produce
MORE than 400 barrels per acre, the OPP
orator cannot afford to develop it. IL
it produces 500 barrels to the acre, then
it would barely be profitable to the OPP
orator, who expects to get his money
back plus at least 500 per cent. That
would call for a WELD of at least 5000
barrels per acre. However, we receive
100 per cent for each 400 barrels per acre
of production.
None can see into the ground to tell
how much oil is contained In. a given
tract. No engineer can stand on 100
acres of undevelOped ground in Kevtnr
Sunburst field and say definitely that the
tract will produce any certain number of
barrels Of oil. But he can examine the
production records of the entire field and
determine what the average developed
acre i'm the field has already produced.
That win give him some basis of a guess
as to the possibilities but not necessarily
the probabilities of any proven tract I'm
the field.
This tract has one well that viii yield
around rs per cent per annum on the
investment. That is not a large income,
but when we consider that there are 81
more locations to be drilled, 10 is APP
parent that the coming of market for
crude win see the drilling OF additional
wells and resultant increase of royalty
earnings.
That describes the type of royalty
which we believe win make the most
satisfactory profits. Add to this royalty
some properties which have no produc-
ton and which cost less per acre and
which can afford even greater returns
ON the investment when developed, and
we have the basis of a liberal future
income from a relatively small invest
ment.
We believe that the time is here to
bury available producing royalties In prov
en- territory. We believe that at this
time, with restricted markets, we can
buy good royalties for less money than
ever before or perhaps ever again. We
believe, also, that the coming year viii
ind the crude market opened mp TO a
point where all of these wells win be
producing at capacity and new wells
VIII be drilled ON properties which are
today idle.
AS stated, we seldom do much with
royalties but we commend this
DIan at this time TO members who viii
want to join in such a buying campaign.
Any wishing to participate In the pur-
chase of producing royalties should send
the attached coupon.
Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1938-09-24

atty owner who is ''up against it," and
ne win make sacrifice price that con-
forms with our idea of royalty values
Those royalties are quickly snapped
up by our members who like to get
enough producing royalties so that their
annual income from ALL their royalty
investments shall show them good rate
of interest.
We believe that the greatest a.
mount of money can be made from the
purchase of wildcat royalties which
usually offer the greatest odds. But
this is too hazardous. 1t is too much
like a gambling game, with the odds
large in the event of winning but the
probabilities five-tO-One or 1O-tO-One
against winning at all.
The extreme opposite to buying all
wildcat royalties is to buy only prOduc-
ing royalties, figuring closely and gamb-
ling on the per-acre recovery of a given
tract, hoping to get a royalty that will
have exceptionally large production
greater than the average for the field.
Neither policy is good business, in
our estimation
Then what is the best policy?
We have been buying royalties
for our members for more than Is
years and we have seen the distri-
button of more than $8,OOO,OO000
of royalty earnings among $500
people. We have studied the pro-
perties of investors and we have
found that the greatest profits
have been made, on the average, by
those who carefully balanced their
investments among (1) proven
ground, (2) producing and 60
wildcat royalties.
The most conservative buyers took
mostly producing royalties but their re-
turns were not as great, compared with
their investment, as those who took
mostly proven ground royalties. Those
who bought only wildcat royalties had
made the least average profit on their
Investment although the occasional i'm
weston had hit it lucky and had made
a large profit from a single investment.
That was the exception rather than the
rule
We learned to avoid Investment in
royalties ON IargeIy-depleted leases, al
though Cat Greek field fooled us by pro-
ducing two or three times as much as
we had expected it to produce per acre.
We found that the greatest profit has
come to those who have been able to
buy royalty on a farm that has one or
two wells, with a large undevel0ped
area. These royalties are not bought
on Mfd-COnttnent basis, but ON the
basis of PROVEN GROUND royalties,
IL they are TO be really profitable.
We have I'm mind a royalty which came
TO us just recently. The owner of this
royalty had pressing need for cash and
found that the most liquid asset was an
oil royalty ON a Kevin-Sunburst property
on which there Is a producing wei. He
would not sell this royalty except for the
Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1938-09-24

Husband.-rYe told you before
that 1t is economically unsound to
spend your money before you get
it.
Wife, don't know. II you don't
get tat least you've got some
thing for your money.
You used to call me sweetheart
before we were married. Now you
don't call me anything"
THAT shows my self-eontrol.
Charlotte: MY good man, does
this dog possess a family tree?"
Owner: ooh, no, madam-he has
no particular tree"
Clerk 'Mr. Mcpherson, how about
buying the latest atlas?"
Mr. Mcpherson: ''Not moo, mon:
I'll wait until the affairs in Europe
are more settled"
Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1938-09-24

Are you sure have pneumo-
MAJ" an anxious patient asked a
physician. II have heard that doc
tors sometimes give wrong dag
noses, and have treated patients for
pneumonia who afterwards died OF
typhoid fever"
You've been woefuIly misinform-
ed" replied the medico Indignantly.
"If I treat a man for pneumonia,
he dies OF pneumonia"
Ma: ut says here in the paper
that doctors now believe low neck
dresses ward off pneumonia"
Pa: well, according to that
some of the women at the banquet
the other night must have been
trying to ward off lumbago."
Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1938-09-24

Employe-I came in to ask If yen
could raise my salary.
Boss-This isn't payday.
EmplOye-I know that, but I
thought / would speak about it
today.
Boss-'Go back to your work and
don't worry. I've managed TO raise
It every week so far, haven't 1?
I'm the happiest man in the
world. I've the best wife in the
country.
Who wouldn't be happy with his
wife in the country?
small boy explained the doc
trine of evolution in an examina-
ton paper thus:
Men and women both sprang
from monkeys, but the women
sprang further than the men,
I had a little dog. I called him
August. August was fond of Jump
ing at conclusions, especially at
the cows conclusion. One day he
jumped at the males conclusion.
The next day was the first of Sep
TENDER.
They were skating at the ice are
ma, and Liza fell down, Topped ov-
er, and came right up again in
front of Rastus with remarkable
agility.
Did yu' see how quick All re-
covered NAH equilibrium, Rastus?"
'iGolly, yaas,-almos' Oefo' All
noticed it was uncovered"
Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1938-09-24

colored lady who went to reg
lister as a voter and was asked
what party she affiliated with.
"Ah hates to tell" she replied.
"cause he amt got his divorce
yet"
Discussing the type of milk which
should be supplied to school chill
dren, the chairman of the towns
health committee said:
What this town needs is a
supply of clean, fresh milk. and we
should take the bull by the horns
and demand It,"
Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1938-09-24

SEND A CONTRIBUTION To
THE SUNBURST BADGER
Evening star., 1938-07-31
D. c. CONTINGENT
ON WAY TO COAST
Mrs. Ida Ramsey Is Leading
W. C. T. U. Delegates to
San Francisco.

Led by Mrs. Ida Ramsay, president,
approximately half a dozen members
Of the Women's Christian Temperance
Union Of Washington are en- route
to San Francisco to attend the 64th
annual convention of the National w.
c. T. u, which will convene next
Thursday.
The convention is expected to make
plans for observance during 1899 of
the centenary Of the birth of Frances
Willard. According to an announce
ment from the national headquarters
the delegates also are expected to:
Appraise the rapidly mounting rec
ord Of liquor-bred crime and dissipa-
ton"
Plan the completion in 1899 OF a
preliminary fve-year program of edu-
cation on the alcohol problem.
Give special recognition to rapidly
Evening star., 1938-07-31
MRS. JANE collins
IS DEAD HERE AT 80
Lifelong Resident of Capital.
Member of Ladies Board
of Casualty Hospital.

Mrs. Jane Ellis Collins, 80, lifelong
resident of this city, died yesterday at
her home, 7os Military road NV.
after an illness Of about month.
Mrs, Collins, the widow of Cornelius
Collins, was a member of the ladies
board of Casualty Hospital the home
board Of the Presbyterian Home and
the Metropolitan Presbyterian Church.
Surviving are three sons, Capt.
Harry E. Collins, assistant director of
the procurement division. Treasury De-
partment: George c. Collins. New Or
leans. and Philip L. Collins. Los Ange-
les: daughter, Miss Isabel v. Collins.
this city; two sisters Mrs. Mary L.
Reynolds and Mrs. Florence v. Hoskins
both of this city, and two grand
children.
Funeral services will be held at
1880 am. Tuesday at the residence
Burial will be In Glenwood Cemetery.
Evening star., 1938-07-31
Clipper
Continued From First Paee,)

tContlnued From First Page)
reached Tacloban. on Leyte Gulf in
the East Central Philippines, prepara-
tory to flying seaward for an aerial
inspection of the oil slick.
Reports at 10 AM.
The Meigs reported at 10 am (6
pm. Saturday, Pacific standard time)
that she was awaiting the arrival of
the bombers, expected by noon, before
resuming careful inspection of the oil
slick. area and surrounding region.
Meanwhile, Navy officials said they
did not expect three Navy destroyers
which started from San Bernardino
Straits. at the southeastern tip of Lu-
zon Island, to reach the Meigs until
this afternoon. Other Navy rescue
ships were far behind the destroyers.
Some Pan-American officials sug-
gested the slick might have been made
by the voluntary dumping of anchor
oir' from the plane preparatory to an
unscheduled landing at sea. and that
the strongly-built 26-ton plane might
have TAXED or drifted away thereafter,
The plane presumably carried a
large supply of anchor oil" for use
in quieting turbulent waters in the
event of forced landing. This oil is
poured on the ocean surface about the
craft to be protected. Because it is
lighter than water. it remains on the
surface and causes choppy seas to
break before they reach the hull of
the ship, This decreases the pounding
OF the waves against the vessel.
Safe Landing Is Doubted.
Naval searchers said informally that
If the plane had made anything like a
safe, unscheduled landing at sea she
should have been able to respond in
some manner to the repeated radio
calls, flares and rocket signals u7ed by
the hunting craft.
Some company executives said a
rough, but not disastrous landing could
nave put her radio apparatus out of
The disappearance of the Hawaiian
clipper failed to affect the routine
flights of her two sister ships. The
Philippine clipper landed yesterday
(Saturday. Pacific time) in Alameda
and the China clipper arrived about
the same time in Hawaii.
They passed each other at sea DUR
ing the night. The Philippine clipper
carried nine passengers and the China
clipper 10.
Evening star., 1938-07-31
Held in Robberies Probe.

BUCHANAN, Va, July 80 R.-
State and city police held two men
IN custody tonight as they pressed
their investigation into a series Of au-
tomobile robberies here earlier in the
week. The men, arrested in West Vir-
ginia. were brought here on warrants.
They gave their names as Edward w.
Roach, AZ, and Millard Roach, "a.
They were returned from Beckley, w.
Va.
Evening star., 1938-07-31

growing youth movements against
beverage alcohol.
Pledge aid to public movements
against gambling and venereal dis
ease.
Speakers will include Gov. Frank
F. Merriam. Mayor Angelo j. Rossi of
San Francisco, Mrs Ida B. Wise
Smith, national president, and Mrs.
Ella A. Boole, world w. G. r. U. presi-
dent.
Evening star., 1938-07-31
MAN, UNABLE TO SWIM,
BROWNS SAVING SON
Pushes Boy Into Shallow Water.
Then Sinks Before Youth
Can Bring Aid.

Ey the Associated Press.
ATLANTIC CITY. N. j.. July 30
Unable to swim, James Hawthorne,
3s, OF Philadelphia jumped into an
inlet here today and saved his a.
year-old son James, jr, but drowned
before aid could reach him.
At the shore for a two-day fishing
trip, the father was angling from a
fowboat. The boy was swimming,
The father saw the son step into
deep water and plunged from the
boat. Flounderins, he pushed the boy
back to shallow water, but sank over
his depth.
The boys screams brought Coast
Guards. who dragged him to shore.
Later. they recovered the fathers
body.
Evening star., 1938-07-31
LEAF YIELDS $4,000, 900
Georgia-Florida Tobacco Marts
Sell 14,752,346 Pounds

VALDOSTA. Ga. July 80 tP-
Buyers paid nearly s4,OO0.ooo in two
days for bright leaf tobacco sold in
Is OF the II Georgia Florida markets,
report from the Bureau of Asricul-
tural Economics indicated today
Growers sold 14.752.346 pounds for
an average of 1855 cents in the
markets, the report said.
This would amount to s3.918223
The totals compare with last years
sales for the first two days in the IS
South Georgia markets Of 1875, ,254
pounds for S3,248.275
Imperial Valley press., 1938-07-05
Editorials and Comment
TUESDAY, JULY s. 1888
A FORWARD STEP
IN GOVERNMENT

(Christian Science Monitor)
In a series of executive orders issued
last week, President Roosevelt swept
more than 100000 Federal employees
off the political pie counter, prescribed
a method of career promotion for execu-
tive agencies, and added half dozen
other major changes which reformers
have urged for years. In an interview
with this paper, Harry B. Mitchell, presi-
dent of the United States Civil Service
Commission, described the step as "the
most important since the passage of the
original Civil Service law in 1883" -
over half century ago.
Robert L. Johnson, president of the
National Civil Service Reform League,
finds that under the new rules 1.-The Presi-
dent has gone about as far in extending
the merit system as existing law per-
mits" And Samuel H. Ordway, Jr., the
Republican member of the commission,
reassuringly denies the contention that
the new orders merely freeze" New
Deal Democrats into positions already
held.
Looked at statistically, the move is
impressive. "The new order is more COM
prehensive than the great extensions
made by Presidents Cleveland, Theodore
Roosevelt, Taft and Wilson," says the
Civil Service Reform League. There are
approximately $4,000 Federal jobs in
the executive departments at present, of
which 100000 are now under Civil Ser
vice. Of the remaining 100000, the new
Roosevelt orders will bring an expected
additional 100000 into the merit system.
This includes every executive position
which is not specifically exempted from
Civil Service by act of Congress. If fur
ther extensions are made they must come
out of the special congressional spoils
group.
There are plenty of reforms left to
accomplish. The Presidents move only
has the force of an executive order, and
it is conceivable, though unlikely, that
Congress might overthrow it next year,
or in the future. Then, there are those
10000 Federal jobs still specifically
exempt from Civil Service by Congress.
Most important of all is to transform
the whole Civil Service system from a
negative job-protecting agency into
career service after the British pattern.
In the meantime, however, the Pres-
dents step is one of the best pieces of
news that has come out of Washington in
long time.
Imperial Valley press., 1938-07-05
FORGETTING THE THEME
OF JULY FOURTH

Another Fourth of July has come and
gone and throughout the United
States hundreds of homes today are des-
olate because some member of the fam
lily fell victim to the American habit
of celebrating not wisely but careless
ly. Death by violence, most often on the
highway, turned day of holiday into
a day of grief and suffering for many
scores. To them July Fourth was not
day of rejoicing, but day of ang-
uish.
Yet for two months before the 4th
of July this year, more than half hun
dred nationwide organizations threw
their resources into a spirited cam
paign to urge Americans along the path
of safety in their holiday celebrations.
Every kind of publicity was thrown into
the drive. The average man had to be
deaf, dumb and blind to remain ignor-
ant of the warnings that were sounded.
The result?
Accidental deaths neared a record
high figure. Americans once again for
got that July 4th is basically solemn
occasion to rejoice over their nations
independence, remembering only that it
is day when they speed on highways,
handle dangerous explosives and con-
sumo combustible alcohol. Hundreds
died.
New means must be devised, we be-
lieve, if this annual slaughter in the
name of celebration is to be avoided
Since traffic accidents claim the great
est number of lives annually, the new
efforts might we'll aim at greater traf-
fic safety as their first goal.
In some states already there is an
increasing trend toward making high
way safety matter of official con-
Germ, through official safety depart
ments of state government to study en-
gineering and other improvements in
highways and on motor cars Increas-
ingly there is the demand for more rig
id drivers tests, and for schools to equip
would-be motorists with the knowledge
of how to drive More and more, the
careless driver and the speedy driver
is becoming an object of public dislike
instead of an object of moronic admir-
alton.
Only through widespread public edu-
cation and cooperation can the public
be protected from its own deadly impul-
ses. Every motorist who believes, that
can't happen to me-" must be made TO
realize that it not only can, but very
probably may, happen to him.