Casper Daily Tribune Newspaper, May 23, 1922, Page 8

of te rt ot he 0 ne ur 3 et as er nm in iv a PAGE EIGHT be Casyet Daily Ctbune TUESDAY, MAY 23, 1922 MARKET GOSSIP AND FIELD NEWS | MARINE OIL ISS UES STATEMENT A statement of earnings and expenses nection with the quarterly statement of the Marine Oil com-|4@sri@2 pany show a net earning that exceeds that of any other simi-! American prepared in con- lar period in the history of the company. The statement follows: WHEAT RALLY CHECKS SLUMP | Registration and transf Prices Recover in Late Trad-| ing and Close Is Higher Today. CHICAGO, May 23—Wheat prices moved sharply upward tn price today} after considerable hesitancy had pre-! vailed throughout the first half of the| board of trade session. Confirmation; of reports that several cargoes of wheat would be moved out of Chicago for shipment to Europe was the chief! influence strengthening the market.| The close was unsettled, %c net higher, with May $1.37% to $1.38 andl July $1.25% to $1.26. | CHICAGO, May 23.—Heavy deliv- eries on May contracts, 711,000} bushels, together with big receipts,; 400 carloads, put bulls at a disadvan- tage in the wheat market today dur- ing the easly ‘Bealings. On other hand, absence of Miquidating salts gave the market €ompdrative firm- ness at the Demand, how- ever, was and the market showed a tendency’to sag. Opening prices, which from unchanged figures to half @ent higher, with May $1.33% and Joly $1.23% to $1.24%, were followed by a little further up- turn for May and then by a setback all sround to below yesterday’s fin- ish. Announcement was made that rail-| roads west of here had ordered wheat| shipments to Chicago rushed on a 24- hour schedule from Missouri river points to Chicago. Subsequently, though, improved prospects for the movement eastward from Chicago led to enlarged buying and to higher values, May delivery showing tempo- rarily an overnight advance of 5 cents. Corn and oats were easy. with wheat. After starting unchanged to %c lower, July 63%c to G4c, the corn market declined a little for all deliv- eries. Advance insured when the wheat market developed strength. The close ‘was neryous at a shade off to %c gain, with July 64%¢c. Oats started unchanged to %e lower, July 38%c to 38%c and then suffered a silght general setback. Lower quotations on hogs weak- ened provisions. Closing sal Open High Low Close 1.33% 1.38% 1.33. 1.37% 1.23% 1.26% 1.23% 1.25% 1.19% 1.20% 1.18% 1.20% 62% 61% 60% 61% 63% 64% 83% = 66 66% 65% 37% 37 BTM 139% BRK 40% 40% 39% 11.35 -11.60 11.60 1.85 °11.80 11.85 Bept -11,70 11.70 11.67 11.67 Butter and Eggs. CHICAGO, May 23.—Butter unset- ted; creamery extra 34c; firsts 31% 33%c; seconds 28@29%4c; standards 34%. Eggs higher; receipts 41,183 cases: firsts 24@24%c; ordinary firsts, 22@ 22%c; miscellaneous, 23@23%; stor- age pocked extras 27c; storage packed firsts, 26% @26%c. Livestock Mart Omaha Quotations. OMAHA, May 23.{U. S. Burean of Markets)—Hogs, receipts 12,500; slow, mostly 15 to 25e lower; bulk 180 to 240 pound butchers $10.10@10.25; top $10.30; bulk, 250 to 325 pound butch- ers, $9.99@10.10. packing grades $8.75 @9.75. Cattle, receipts 7,000; beef steers strong to 15c higher; light and medium weights mostly at advances; top yearl ings $8.50; she stock, about lo to 15¢ higher; other clases of stock con erally steady. Sheep, receipts 5,000. lambs mostly 50 cents higher; wooled lambs $14.90; bulk springers $14.00@14.75; clipped $12.65@12.85; sheep strong; ewe top $6.50. feeders steady. Chicago Prices. CHICAGO, May 23.—{U. S. Bureau of Markets)—Cattle receipts 9,000; market fairly active; beef steers strong to 10c higher; top beef steers $9.25; bulk $9.85; she stock and stockers steady. bulls strong to higher; ask- ing higher on veal calves; fed early gales choice handy vealers to outsid- ers $10.00@10.50. Hogs, receipts 29,000: market ac- tive: mostly, 10 cents lower than Mon- day's average on lights and 10 to 15c lower on medium and heavy butchers or about steady to 5c lower than ex- treme close; top $10.65; bulk $10.15@ 10.65. pigs steady to strong; bulk good 110 to 130 pounders, $9.50@10.25; pack- ing sows weak; heavy weight 250 pounds up $10.25@10.40; medium weight, 200 to 260 pounds, $10.40@ 10.65; light weight*150 to 200 pounds $10.60@10.65; lignt lights 130 and 150 pounds, $10.00@10.65. packing sows, 250 pounds up, smooth $9.35@9.75; packing sows, 200 pounds richt, $9.00 @9.40; killing pigs, 130 pounds down $9.25@10.25. Sheep, receipts 12,000; most! 15 to | Traveling expense cate is erecting a rig for an offset to tart drilling soon on a well in sec- Earnings. ia $8T396.88 205.04 Ol sales - |Gas sales — | Total Office and general expense... 1,115.24 Interest — a Legal expense -—. Salaries -_. paabiesedls tha hab Net earnings from Jan. Ist to April 30, 1922... - Marine Oil \ January ist to April 30, 1922. January —$ 8,763,50 February 7,962.62) March April - Total Status of Strike Unknown. Although the potential production of the Caltfornia-Wyoming Oil company well in the Pine Mountain field is still an unknown quantity, reports from the test indicate that there is a show- ing of of] and thst much lubricant is! seeping through the obstruction caused by the wrong placement of a shot of: nitro-glycerine in the hole. ‘When the well was drilled into the sand at a depth of 1,740 feet a good showing of oil was encountered. It was decided to shoot the well in order! to break up the sand and then test the production. When the shot was set off it was found that the explosion wccurred in the shale sume 20 or 30 feet above the sand. Efforts are being made to clean ovt the hole and re-case Ddefore another: shot is set off in the oll sand proper. ‘The wel: being drilled by the Cal fornia-Wyoming Oil company is being: drilled en a lease owned by the Evans Ol corporation. The Gordon Campbell.Kevin syndi- its discovery well on the Rocky Ridge dome of the Sweetgrass arch, north- etn Montana. This section comes as the best evidence of a commercial Producer in the first test, The loca- tion is the northwest quarter of sec- tion 15-35-3. In the same region E. A. Louis, a merchant of Kevin and associates will tion 14-35-3. Louis holds a govern- ment prospecting permit on 160 gcres which he proposes to bring to produc- tion. * Goshen Test Drilling. Detroit-Wyoming Oil company is down 3,315 feet with its test of the Goshen dome» Goshen county, Wyo- ming, which will be continued for sev- eral hundred feet if necessary to thor- oughly test the structure. Casing Being Pulled. Two hundred feet of damaged cas- ing remains to be removed from the well of the Southwest Petroleum com- pany near Saratoga, Wyo., before drilling gan be resumed. The hole is ‘now clear to a depth of 2,800 feet. The parting of the casing followed de- struction of the rig by fire and other misfortunes which have delayed the test. Water Found in Wildcat. Water was found in the Greybull sand in the Collins well being drilled to test the Bonanza field in the Big Horn Basin, northern Wyoming. It is possible that the Big Horn and Jes- seph interests will consolidate in the drilling of a deep test on the struc- ture. lOWA-WYOMIN PETS NEWWELL After being continuously in of] from. a depth of 2,010 feet well No. 11, drilled by the Iowa-Wyoming Oil com- Pany on the northeast quarter of sec- tion 9-29-81, in the Bolton field, was completed Sunday at a depth of 2,050 and came in with an initial daily pro- duction of 300 barrels, according to the statement of Carl Newman, field superintendent. The new completion brought tho total of producing wells in the field to 10. The daily production can only be ¢stimated pending the completion of the pumping plant which is being erected in the field to.concentrate the ofl for pipeline delivery this summer. The .contract held by the Midwest Refining company to construct a Pipeline to the field this summer will expire June 1, Negotiations are pend- ing on the contract and it is probable that the work will be undertaken in the near future, 25e higher; some aged wethers and ewes steady; early top shorn lambs $13.25. best Texas wethers $7.50; best native spring lambs $11.25; early sales Callfornia spring lambs $15.00@15.40; feeder -lambs $11.25; vev2 shrd cmfw feeder ends 85c higher at $12.85; choice California yeanling lambs $10.90; Cali- fornia ewes $7.15. Denver Prices. DENVER, Colo., May 23.—Cattle— Receipts, 4,800; market 15¢ to 25c -——-———-----— - $37, 599.70 vesitimore and Ohio Expenses. | Bethlehem Steel “B” Well operations -_.____ —$ 7,657.85\Canadian Pacific New York Stocks Associated Press Leased Wire EAST SALES 23 Allied Chemical & Dye Allis Chalmers 3 American 19 American 2 American % American International Corp .. 48% |Chappell .... Sd aise = +> 114% | Columbine “- 20 American | American American | American Anaconda Atchison .....,. | Atl, Gulf and West Indies Baldwin Locomotive Central Leather ¥ Asphalt General Flectric General Motors .: Goodrich Co. . Great Ni a Illinois Central’. . 106 Inspiration Copper art Internctional Harvest 103 Int. Mer Marine. pfd. - 83% International Paper - &1 Invincible Ol . + 18% Kelly Springfield « 51% Kennecott Copper . + 38% Lousiville and Nashville - 119% Mexican Petroleum 133% Miami Copper .. Middie States Oil . Midvale Steel . Missouri Pacific New York Central . N. Y.. N. H. and Hartford Norfolk and Western Northern Pacific .. Oklahoma Prod. and Ref. Pacific Olt ...... eecce Pan American Petroleum Pennsylvania . . | A 7 Sinclair Con. Oit 36% Southern Pacific 92 Southern Railway . 25 Standard Oil of N. J. + 190% Studebaker Corporation 121% Tennessee Copper . 12335 Texzs Co. .. ee - 48 Texas and Pacific . 34 Tobacco Products . 12% ‘Transcontinental Oil 191% Union Pacific + 139%% United Retatl Stores + 67 U. 8.-Ind. Aleohol 53% United States Rubber 64 United States Steel Utah Copper ..... ote Westinghouse Electric Willys . Overland . American Zine, Lead and Sm .. Entte and Superior tin Petroleum Montana Power + 72% Shattuck Arizona . 10% Great Northern Ore 40% Townley Out On $12,000 Bonds FARGO, N. D., May 24,—«By the Associated ' Press.}—A. C. Townley, Consolidated 75%) Capitol Pete . 26% |Cow Gulch 123% | Domino former president of the National Non- country. Oil Securities Furnished by Taylor and Clay \ Royalty"! 1/38 00% Royalty and Prod Sunset as Tom Beil Royalt, Western Wind River Refg. United Poste WyoKans Wyo-Tex Western Of Fiolds Western States . ¥ ou NEW YORK cums CLOSING Mountain Producers .$ Merritt .... Glenrock Ofi - 1 1 Victory 4%s . Crude Market Big Muddy Mule Creek partisan league, gave bonds of $12,000 in Cass county district court here Monday in connection with six indict- ments against him, returned by the recent grand jury which investigated affairs of the defunct Scandinavian American bank of Fargo. H. A. Paddock, Minneapolis, ior- mer secretary of North Dakota In- dustrial commission e bond of $2,- 000 in conri@ction with one indictment charging false éntry. This also deals with relations between the §candi- navian American bank and the Con- sumers United Stores. ne The finest Kashmir shawls cost as much at $1,500 when bought in that Quotations Furnished BOND SECURITIES Securities Corporation, Cheyenne, Inquiries Answered. by wae John U, Fish SHORT COURSE IN BONDS— NO 2. By John U. Fish. Differentiating between active in- yestment, which might aptly be called railroading, manufacturing, exporting in fact, the various lines of industrial activity which are productive of new goods or the movement of goods al- rewviy manufactured as against pas-| sive investment, which might be call-| ©d bonds, mortgages, notes, stocks, commercial paper and acceptances. The money, which heretofore has| been employed in active investment, | following the slump in commercial ac- tivity, sought the only natural outlet which was passive investthent in or- der that the funds might be produc- tive of earnings. In June, 1921, this volume of money began to seek in- vestment channels, causing a turn in the bond’ market and incidentally, a rise in the price of investment secur- ities. A bond, which in its simplest form is @ subdivided mortgage bear- ing a given rate, must, if the price of money reaches a rate higher than the rate borne by the bond, sell at a point below par, and, inversely, if the price af money is at a lower rate than that rate borne by the bond, then the STANDARD BONDS. Security Bid Asked Anglo-Am. Oll, 7c, 1925 103% 103% Am, Sugar Ret, 6s, 1937 100% 100% Am. T. and T., 6s, 1924, 101% 101% Balt. & Ohio., 6s, 1929.. 99% 100 Bal. Gov., 6s, 1925 ..... 102% 103% Bel. Gov.'S.F., Ts, 1945 108 10834 Bal. Gov. S. F., 8s, 1941 106% 107 British, 6%s,199 . + 108% 108% British, 5%s, 1937 +102 102% Can. Pac., Ry., Deb. stk. 78% 78% CB. & G. be, 1971... 98% 9g Can. Pac. reg. 6s, 1924.. 101% 101% Chile, 8s, 1941 Consol Goat, 5: Copper Expt., 8: bond must sell above par. During the period from 1917 to 1921, money rates were at a high level, with the result that the majority of bonds had to sell at point below a hundred in order to return a yield commensu- rate with prevaling money rates. Since June, 1921, money rates have steadily declined, with the result that the bond market has experienced 4 rapid rise which rise should continue in the opinion of competent authort- ties. This rise has not yet reached its apex because there are still in- creasing quantities of money offered for investment. The natural conse- quence of such a reaction as we have gone through and are going through. is that manufacturing is carried on on @ lessened scale. Less money? is neededl for turning out a given art- icle today than was needed to turn out such an article three years ago and it's the money represented seek- ing the investment market. Also cor- porations which increase their wo! ing capacity in the way of additional lower; beef steers, $6.76@8.25; cows. and heifers, $4.75@7,75; calves, $8@ 11.50; bulls, $3@4.75; stockers and feeders, $6@7.40. Hogs—Receipts 1,600; market 15c to 25e lower; top $10.15; bulk, §9.65@10. Sheep—Receipts, 1,800; market 25¢ higher; clipped lambs $11@12.35; ewes, $7@8.50. forth, are now curtailing rather than labor, machinery, building and 50 are now curtailing rather than ex- ‘oxpanding with an addtiional release of money. All of this money must be put at work and the logical outlet is bonds and investment securities. ‘There was a good deal of dissatis- faction entertained by many people, Copper Expt., 88, 1925 .. 103% 104% Cub. Am. Sug., 8s, 1931. 104% 105 Cuba. R. R., Tic, 1936 . 102% 104% Cuban Tel., 734s, 1941 .. 106% 107 Czechosovak, 88, 1951 .. 98% 99 Dan. Con. Mun., 8c, 1946 110% 111 Del. & Hud., 5448, 1937 . 99% 99% Denmark, 68, 1942 ...... 98% 99% Denmark, 8s, 1945 .....110% 111 DuPont, 7%s, 1931 ....°107% Framerican, 7348, 1942 .. 99% 99% French Gov., 88, 1945 .. 104% Grench Gov., 7%, 1941.:101% 101% Great Nor., 5%s, 1952 .. 99% 99% Great Nor., 7s, 1936 .. 109 109% Rock. Valley, 65, 1924 .. 100% 10035 LaBelle Iron, 6s, 1940. 99 . 100 Jap Gov. 1931 76% 77 Jap Gov., Ist., 4345, 1925 90% 90% Jap. Gov., 2nd, 4%s, 1925 89% 90 Missouri Pec., 68, 1949.. 99% 99% N. O. Tr, & Lt, 65,1947 97% N. PB. Gt. N. J., 6448, 1936 105% 105% N. ¥. Cen.. 55, 2013 ... 95% 95 N. ¥. Edison, 6%s, 1941 109% 110% Jackard, §s, 1951. +107 107% Pen R. R., 6%4s, 1936 .. 109 109% Paris, L-M-R-R, 63, 1958 82% 83% Queensland, 78,1941 .... 110) 111 Queensland, 6s, 1947 ... 102% 102% Seine, 7s, 1942). 1. OF 94% Sin Crude Oil, 6%, 1926 99% 99% Solvay & Cle., 8, 1927.. 105% 106 South. Ry., 6445, 1956 .. 99%4 99 S. W. Bell Tel., 7s, 1925 102% 102% Swiss Gov., 7s, 1040 .... 117% 118 Swiss Gov., 5%s, 1929 .. 102% 102% Uruguay, 85, 1946 . 108 108% Virginian Ry., 5s, 1962. | 95 96 Whitaker Gless., 6s, 1941 98% 99% Pac. Tel. & Tel,, 5s, 1952 94 94% Un. Bag & Pap., 68 1942 97% 98% due to he fall in the market value of Liberty bonds. If the above law of supply and demand Is taken into con- sideration, this matter is'/easily ex- plained. Many people felt that the government should have maintained the market st a hundred on Liberty Bonds. This was a physical impos- sibility in view of the fact that Lih- erty bonds wero issued at a time when money was worth from 4 to 5 per cert, - STOCK MARKET “TRADING ACTIVE opening of today’s session. ent steels and some domestic oils with the proposed merger of several of the tobacco companics, rose 1% points. Sears Players, Atlantic Gulf, Atchison and Erie first preterred were higher by large fractions. ‘The opening rate of 4 per cent for call loans seemed to foreshadow fur- ther stiffening of money rates with the progress of the session and prompted occasional realizing sales before noon. Aside from the strong tone of independent steels, coppers and speculative oils, accumulation of Erie issues was the striking feature. Gains of 1 to 2% points were made by the common and first and second pre- ferred shares. -Reading second pre- ferred also was strong and the more representative rails were featured by Union Pacific, Atlantic Coast Line and New York, Chicago and St. Louis. Pressure was directed against Mext- can Petroleum, U. ©, Rubber, Peoples Gas; Eastman Kodak and Kayser, those issues locing 1 to 1% points, Standard Oil shares were depressed later but bullish operations continued in the low priced oils, motors, coppers public utilities and steels, Reputtic Steel exténded its gain to 4 points. Kelsey Wheel jumped five and New. York, Chicago and St. Louis, 4 points. Studebaker, Texas company, Brook- lyn Transit, North American, Phillips Petroleum, Sinclair Oil, Tabulating recording, Granby Copper and Willis Overland preferred were moved up between one and two points. Metals. NEW YORK, May 23.—Copper strong; electrolytic spot and nearby, 13%@13%e; later, 13% @14c, Tin easy; spot and futures, $30.75. Iron steady; prices* unchanged. Lead firm; spot, $5.50@5.85. Zinc firmer; East St, Louis spot and nearby de livery, $5.15@5.20. Antimony spot, $5.37@5.50. . Foreign Exchange Firm, NEW YORK, May 23.—Great Bri- tain demand $4.44%; cables $4.45; 60- day bills on banks $4.42%. France Jemand,9.04; cables 9.04%. Italy de-| mand 5.13%; cables 5.14. Belgium ¢e-' mand, $8,35; cables 8.35%. Germany demand 32%; cables 33%. Holland demand 38.85; cables 38.90. Norway demand 18,20. Sweden demand 25.80. Denmark )demand 21.30. Switzerland} demand 19,09, Spain demand 15.92,| Greece demand 420. Poland demand} .02%, Argentine demand 13.87. Mon- treal 99 3-16. | Sugar. NEW YORK, May 2).—Sugar futures closed steady; approximate; sales 1,600 tons; refined sugar quoted by one refinery up 5 points to $5.45 for fine granulated with general sales from $5.30 to $5.50. London Money. LONDON, May 23.—Bar silver 36%d per ounce. Money 1% per cent. Discount rates, short and three months bills 2% per cent. Money. NEW YORK, May 23,—Foreign bar silver 72%; Mexican dollars 55%. Money. , NEW YORK, May 23.—Call money, firm; high 4; low 4; ruling rate 4; closing bid 3%; cffered at 4. last loan Independ-| Computing | oil is there, it will [the off in j!ne Salt Creek structure: instead by step was to drill nature's reservoir and produce the oil. That required actual drilling by the United States, are those who believe the United } States could drill its own lands with |its own drilling organization and thus secure all the oil, That involves a radical departure from previous prac- tice, and need not be considered here. Letting a contract was necessary. Should that contract be let privately without competition, or be let after ‘advertisement and upon inspection of competing bids based upon careful jSpecifications tendered bidders? It would seem that if the United States departments {not competent to carry in a drilling and developing campaign, neither ore they competent to privately judge the best terms and conditions upon which a private con- tractor should do the work, The United States statutes are filled with provisions for competitive bidding in buying and selling public property and in constructing and developing public works or resources. The rec- ords in the federal court's criminal dockets are filled with prosecutions and some convictions of ‘grafters and thieving contractors who have robbed the public, usually because they pur- chase or overawe government inspec- tors of work by ‘claim of political fa- yor. The “cost-plus" craze we have witnessed the past few years is dem- onstrating the wisdom of open bdid- ding backed by proper bonds for per- formance. The oi! land leasing law specifically requires competitive bid- ding for oil and gas lease acreege not earned by prospecting discovery. That law also authorizes competitive bid- ding for purchase of government roy- acy, but the authority is ignored or defeated by manifest subterfuge, Concede that the law of June 4, 1920, authorizes a letting of contract to drill by private arrangement or by public bidding. You believe in one or the other method of letting public contract. Your duty as a citizen de mands that you give political expres- sion to that belief. If your national party brand is burned into your hide too deep to change or pumpkin, you {can at least align yourself wjth those within your own party who believe as you do. It is a safe bet that what- ever party you belong to, a big ma- jority thereof believe in open, com- petitive bidding. It is said in defense of the private letting of so import- ant a contract that the contract in- volves so great a sum, so many de- tails, and such varied activity (de- velopment, sale of oil, re-sale, pipe line, long life; etc.) that competitive bidding was impracticable. This is but another definition of invisible gov- ernment in America and of tmperial government in the old world. It is |this argument, government is so com- plicated that the average man ts not fit to have a voice in his own govern- ment, hence his governors are hand- picked by the emperor, or by a se- lect committee of bondholders setting in the Blackstone hotel. And, without disprraging the ability of Mr. Sin- clair, by what process of reasoning is he set up as the straw man hay- ing all the necessary qualities which could not be uncovered by compet!- tive bidding, with the usual right to reject any and all bids. And if mag- nitude of the work and investment re- 4; call loans against acceptances 3%. Time loans ly, sixty days and 90 days 4@4%; six months 4%. DAMAGE LIGHT INTANK FIRE ‘The first electrical storm of the year and almost the first bolt of lightning struck one of the 80,000 barrel tanks on the Standard tank farm west of Casper Sunday afternoon and for a) time threatened the destruction of the steel estructura and the 80,000 barrels of crude oil it contained. ‘The spectacular blaze was brought: under control and extinguished within 40 minutes after it started through the use of Foamite. Hundreds of Casper people braved a heavy rain storm which fell during the period to witness: the fight which was waged against tho, flames. Standard officials here were unable to make any estimate of the loss. The! wooden roof of the tank was burned off and a small amount of oil destroy-, 4, |e before the blaze was extinguished. It is probabdle that $5,000 would re- place the oil and restore the tank to its former condition. HOW ABOUT THAT PIANO FOR ‘XOUR HOME JUST NOW? Our. stock is complete in beautiful new pianos in @ number of high grade pianos, also a fine line of ‘best players pianos, including the world’s wonder in the marvelous Ampico re- producing plano, Should you be in- terested in anything in the plano line, drop a line to tho Chas. E. Wella Mu- sic company, Denver, Colo., and we will go the limit to help you solve your problem. 5-22-3t — Whale sharks, found in the Indian and Pacific oceans, often attain a length of 60 feet, but are quite harm- less. quired preclude competitive bidding, why give the contract to the Mam- moth Oil company, a new-born cor- poration possessing neither funds, ex- perience, organization nor pride of ancestry. In fact, its parentage is in dispute; but inasmuch as this con- tract could not have been let without formal consent of the* Standard Oil group, as.we shall demonstrate here- after, it should be evident to any rea- soning person that the Mammouth's umbilical cord still beats in the con- sulting rooms of the group of New York Standar@-Ofl banks. There is no reason why the standard people should not have this contract. If Sin- clair'is not a Standard agent or feed- er, then at least the Standard should have had an opportunity to bid for this contract. If he is a Stendard figure head; then there exists reason why the remaining thousands of cap- able ofl operators should have been invited to test this contract by op- portunity to bid for it. Sinclair's most notable achievements in the past have been to assemble independent producers and build pipelines, and later see these poss into control of the Standard. Keeping Crude Oil Out of the Open ‘ Market. This Teapot ofl is not a character fit for naval uses. So the Sinclair contract provides tha the government royalty off be sold at Midcontinent price and paid for in black ofl to be bought in at the market price. As the Stendard in effect creates and can maintain both prices, if only inde- pendent refiners are kept from se- curing oil in substantial amounts, it will be seen that this provision pre- sents great value to the Standard. Since the leasing law passed, the greatest task confronting the Stand- ard Oil organization has been to keep the United States royalty oil from coming into the open market where independent capital or refineries may bid for it. The leasing law carries a provision that such government royalty oil ‘shall be sold, from time to time, by THE TEAPOT DOME OIL CONTRACT ASSEENBY WYOMING OIL OPERATOR, IN THREE ARTICLES By H. H. SCHWARTZ. (Continued from Monday) competitive bidding. A small proviso] Refining. company,’ being located af authorizes the secretary of the inter- to any department of the United gov- - | ernment. ‘This proviso was intended to permit the navy or shipping board to get oil in event the Standard outbid the mar- ket. The competitive bidding is thus whoily defeated. The shipping board. having no more use for Salt Creek gasoline ofl than it has for artic ice, at once called upon the interior de- partment to purchese this Salt Creek royalty oil. It then “sold” the oil to the Midwest ““e=dard) at the Mid- west field price, and the Midwa * Standard peys for it by delivering black fuel oil at market price to such points as the shipping board m: quest. This highly “satisfactory” ar- rangement is to be perpetuated in the long-time Teapot dome contract. It has many features admirably suit- ed to invisible government. First, the crude off is kept off the open market, and this prevents continuance of in- dependent refineries; diso, it prevents demonstration of true values and mar- ket prices for crude through work- ing of the law of supply and demand; it holds in proper political alignment powerful individuals and corporations; by centralizing and combining indus- try in a few hands it creates rotten- boroughs which can be depended up- on to deliver représentative votes where needed; it permits and invites! capitalization of the profits incident to monopoly, and thus diverts the ings of the industry to payment of dividends on exce-sive capitaliza- tion, and reduces the proportion going to labor and spent in the local. com- munity. . You believe this royalty be kept in the open mar! by competitive bidding, .g believe it. If you bel wise to permit the § oll at its own price, refined gasoline, k: cants at its own pri h to have the courage to re belief by demanding of your own po- litical leaders that the present pernic- fous practice cease, and that no addi- tional contracts of the kind be made. If you have intelligence enough to know that your particular political leaders are helpless or indifferent, then you should yourself assume lead- ership or select other leaders. Any action short of this shows you are a moral weakling. In defense of this ex- change of gas, oll for black oil it is urged that it is highly convenient for te Midwest to delivér black oil here, there and elsewhere just in quantity and amount as needed. The Midwest e the seaport and great rafiroad termi nal of Casper, Wyo., and having Pecial facilities for transporting lacie ol is said to be better adapted ta shipping fuel oil than is the Shipping |board, whose function is to recreate |merchant marine and improve trans |portation. Many will agree. It is bo- lieved, however, a governmental func- tion unable to function in its most elemental act, should ‘be discontinued 4nd the building of ships and creation |of shipping be left to shipbuilders and importers and exporters. _ j Reducing the Government Royalty. ‘xt im “SEA In suppor. of the Tea. |Pot dome o contract that oil trom jthe Teapot is no. leaking or drain- jing into Salt Creek, and thus getting |away from Uncle Sam and from his” navy. As none of this oll can be used bythe navy in any event we are con- cerned most in knowing whether th’ of is getting away from Uncle Sam. |The Sinclair or Mammouth contract |for “conserving” this ofl gives the lUnited States from 12% to 25 per cent of the oil when it comes out of |the ground. That contract gives to Sinclair or his principal from |87% per cent of the off produceda Fear {s expressed that this oil is drair |ing into the southeastern end of tha | Salt Creek field. This part of § | Creek is covered with governm lenses under which the United St |secured from 25 to 33 1-3 per ce |of the ol! produced, and the lesseca secure from 75 to 66% per cerg. No you either believe that it is better the United States to secure from 12 to 25 per cent from the Sinclair. co: tract than it {s for your governmen to receive from 25 to 33 1-8 per cent from Salt Creek lessees or you don eleva it. If your government based upon the constitution of the ‘United States, and not upon what you re privately told to do by scthe whi»- |pering politician of the invisible gov- -|ernment, you should demand a better reszon than saving ofl for the navy to secure your support of this contract. Prior to the letting of the Sinclair con- tract no geologist vockbound or mera ofl driller had been found who would not say when asked that the synclir between Teapot and Salt Creek co tained water in all sands, as it had been shown by the drill to contain + in some sands. At present, on the thin thread of Mosher’s well in 19-39-7 which {s not in the syncline, eminent geologists incidentally connected wit; the Standard, now venture opinion that oil may drain from Teapot to Salt Creek. On so small possibility ono may hang a probability to sustain a great necessity. GEOLOGISTS OF CASPER DIVIDED — ON TEAPOT DRAINAGE QUESTION Efforts to ascertain the prevailing sentiment among geolo- gists here as to whether or not wells in the southern end of the Salt Creek are deriving their production from the Salt Creek field proper or are receiving oil from the Teapot field due to a non-conformity in the strata has developed about an equal number of partisans ‘Those who believe that wells outside the government. reserve lines at Tea. pot can still draw their petroleum sup: plies from the field cite the fact that wells drilled close to the saddle which separates the Salt Créek and Teapot fields come in with large production. It is cited also that wells adjoining but which are properly within the Salt Creek field such as the Mosher Syndicate and other such wells come in comparatively small production. The Fensland Oil company drilling south and west of the Mosher wells on section 19-39-78 is said to have develop- ed one of the biggest wells in the Salt Creek field. One of the striking things about the discovery is that oll produced between the fault im south Salt Creek and be- tween the saddle which is the northern boundary of the Teapot reserve, is two per cent higher in gravity than tho oil produced anywhere in the Salt Creek field. ‘The Salt Creek ofl averaging about 37% degrees baume therefore the oil produced in the extreme south- ern end is nearly 40 per cent. ‘With this situation in’ view locations for drilling are being rapidly made in the southern end of the field, oper. ators attempting to spot wells on their land south of the fault and north of of the saddle. ; In the last week the Wyoming May and Blue Print company engineering department has made a series of six such locations. The first of this series to be drilled will be located on the south half of section 19-38-78, on the same section where the Fensland Oi! company de veloped a large producer. The well will be known as Dugan No. 1. The Well will be drilled by the contracting firm of Lemmon and Stewart for local interests. . The objects of these tests is to de termine whether or not the big pro duction comes from Salt Creek or Tea- pot and if from the latter structure to secure ag much of the oll as possible before the operations of the Mam moth Oil company are extended to all districts of the Teapot field. Predictions that the oil was coming SWAN UNDERRE AME for each side of the question. from the Teapot field and not from Salt Creek were made by Frank B, Taylor, geologist and newspaperman in publications that he represents sev- eral months ago. At the fime hh cited that structural conformity in southern Salt Creek would result in comparatively smull wells as the prop: erties were near the waterline limits of the field. He held however, that due to a break in tho Teapot struc ture that wells could be so spotted that Seapot oll in large quantities could be derived by such development, en A very rare gas in the air is neon, of which a room contains but a t spoonful or two. It is used for filling bulbs required to give an orange-col+ ored light. S.S.S. Fills Out Hollow Cheeks, Thin Limbs! os Men und women,—whether you will ever build yourself up to your normal, just-right weight depends on the nu lood-cells in your blood. | ‘That there is to it. It's a scientific fact. If your blood-cell factory. isn't work- ing right, you will be run-down, thin, your blood will be in disorder, and Perhaps your face will be broken out with pimples, blackheads and erup- tions. 8. S. 'S. keeps your blood-cell factory working full time. It helps build ‘new ‘blood-cells. ‘That's why 8. 8. S. builds up thin, run-down peo- ple, it puts firm flesh on your bones, it rounds out your face, arms nec! limbs, the whole body. It puts the “pinks in your cheeks. ‘It takes the hollowness from the eyes, andait fools Father Time by smoothing out wrin- Kles In men and women by “pumping? them up. 8. 5. le blood-purifies yi plump, your skin eruption: blackheads, acne, tetter, blotches are being remov The medicinal ingredients of S. S. are gucranteed purely 8.8.8. 1s sold at all drug stores, sizes. The larger sise is tho economical, ‘vegetable. in two more “WE PAY THE LOSS” Pelton & Hemry Insurance and Bonds All Lines Room 24, Townsend Building