Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1939-10-07
WE NIGHT HAVE MADE $o15.OOO

The new rail rates on Montana
crude and Montana refined products
gives Montana its first real victory
i'm its battle for place in the
i'm the oil industry. No market
that is worth fighting for was ever
conceded by competitor company
or group OF competitors. Montana
did not get as low a rate into the
Inland Empire desired, but low
enough so that Montana can get a
share of the business to which it
is entitled.
The day when the producer sat idly
by and watched the refiner strange to
death is definitely past in the Montana
oil Industry. There was a time when
producers and refiners seemed to have
about as much in common as cats and
dogs. Producers felt that the refiners
were trying to squeeze the last penny
out of them and in some cases that
was true. Refiners felt that the pro-
ducers would run out" on them when
ever a competitor would offer another
nickel per barrel That was always
true. The two groups were always in
separate camps and were usually hos
tile toward one another.
We can think of two or three of that
old school who still remain, but they
have mostly died off or have been
converted" thanks to the crisis of the
Canadian market The two producers
we have in mind still think that the
refiners are chislers, robbers and enc
mics of the producer and that Tin effect)
they should all be run out of business.
But most producers are today in full
sympathy with the refiners and they
feel that it is up to the industry as
whole to go out and battle for perman-
ent markets for Montana crude oil. A
large number of the producers have made
hat al n
iects and thereby cast their lot with
the success of the marketing of refined
products.
This spirit has manifest itself in such
certain terms that we feel that there
ds no question but that Montana will in
the future stand up and battle for its
markets. Given halfway fair railroad
rates. the industry will forge steadily
ahead. Once the gains are consolidated
the industry Will then be powerful
enough to demand and receive the rail
rates to which it is entitled, based upon
volume of business.
Many Montana operators remember the
early-day struggles of Salt Creek field
which had absolutely no local market
Things were REALLY serious for Salt
Greek Producers until there was OBJ
tanned a rail rate which made It possible
to shin GASOLINE from Casper to the
Atlantic Seaboard. To step into the
SedDOdIu mdTheJ meant tndt the opera
tors had to take a licking" but they
fought their way out from nothing to
survival making vast fortunes for many
OF them
The hard going" of Montana was a
garden of roses. compared with the
early-day problems of California pro-
ducers Not until they associated them
selves together and agreed to pay the
price of upbuilding a market did the
California operators begin making a
meagre living. The solution Of their
problem was not the original contract
to sell their oil for 80 cents a barrel
as fuel oil for the Santa Fe railroad
That was just the necessary beginning
Once established, the market outlets
steadily grew
Here in Montana the producers have
no trouble in getting oil There is
plenty of oil for anyone who will go
out and drill for It, The problem has
been to market the oil Tn the past
Montana has had only an uncertain
market at best. 1t was not a depend
able market which insured the produc-
er of the sale of ANY oil at ANY price
one year hence. That was the result of the
ACKNOWLEDGEMENTS policy.
But with the loss of the Canadian market.
producers began to realize that their
fnt"re rests uDon regularly established
outlets for their oil Some OF those
who are sufficiently far-seeing began
'asting their lot with refiners and in