Casper Daily Tribune Newspaper, January 10, 1923, Page 4

ae ane PAGE FOUR. JOGENTS FAR DIFFERENTIAL (Continued from Page one) collect the necessary data and submit| & mvort covering their findings. 4..er a thorough investigation, | exisrding over a period of several months, a lengthy report was sub-| mitted, which contained a great deal| of confidential information furnish- ed by officials of the Midwest Refin- ing company and the Standard Oil company of Indiana, with the under- standing that the detailed informa tion furnished would not be made public. ““This report, therefore, has been! kept in the confidential files of the| bureau of mines. You appreciate, of course, that the report does not con- tain any statements or information | that reflect on the integrity of elther| of these companies, but {it does con- | tain much information on refinery operating methods, yields, and costs that would be of inestimable value to competitors of the two companies. For that reason the bureau of mines / feels that it cannot break the pledge! of its engineers and furnish cples of the report containing this confi- dential information to the public. The secretary of the interior, however, feols that you are entitled to the| general conclusions reached follow- ing the investigation, and has there- fore directed me to write you along these lines, which I am glad to do “A true differential must obviously vary from time to time, depending upon-the yields, price of refined prod- usta, and also upon the price of the raw material, crude ofl. It was heo- essary, therefore, that the bureau of mines engineers adopt some specl- fied period, and conditions existing as of November, 1921, were used in the report, because it was at this time the investigation started. The follow- ing general conclusions were reach: ed in this report. “1—It 1s believed that on the ba- sis of conditions existing in Novem- ber, 1921, a differential of 35 cents a barrel between the base price of Salt Creek crude and the posted: price the Mid-Continent district is fair t: the purchasers of Salt Creek crule jor property as determined by pro- those in effect at Mid Continent re- fineries. The figure of 85 cents per barrel was checked by three nieth- ods: (a) on the basis of realization from the complete refinery at Tulsa, Okla., similar to the one at Casper; (») on the basis of realizations from skimming plant operations, and (¢) on the basis of differences in prices for refined products reflected by dif- ference in freight rates. “2.—The Casper refiner has a de clded advantage over any plant that might be built there unless such a plant is equipped with cracking stills. Pressure stills of the Burton type (a patented process) are responsible for ® gasoline yield practically twice as high as could be obtained by a straight distillation. The Casper plant Produces @ mintmum emount of fuel oil, a product that is difficult to mar- ket profitably in the Rocky Mountain district. This also gives the plant & decided advantage over a refinery not equipped. with cracking stills that must market at fuel, oil prices, approximately 50 per cent of the crude charged to the stills, “3.—Production costs in the Salt Creek field ere sufficiently low to| assure a fair profit to the smaller Producers at the present field price, | proviGed they could market their en-| tire production. Due to the Iimited| capacity of the pipeline system and of the refinery it has been necessary to prorate the runs, the pro-rate in} effect at present amounting to 40} per cent of the production of a well| duction tests. This has worked to the disadventage of the smaller pro- ducers but has prevented the promis-| cuous drilling of wells and minimized wastes that are incidental to the too | rapid development of most ot] fields. “4—The Cifferential that {ts rec- ommended iin the report (35 cents per ‘due the public treasury, was receiv: under conditions which existed dur ing November, 1921. “You are perhaps aware of the fact that the annual’ differential which has existed between Salt Creek and Mic-Continent. crude during the fiveyear period between 1917 end 1921 was 67 cents per barrel, and that prior to November 22, 1922, the Price differential between Salt Creek and Mid-Continent crude was 55 cents per barrel. You are also undoubtedly famihar with the fact that the de partment of interior has sold the government royalty oll to the ship- ping board, which had an exchhange arrangement for securingg fuel ol) from the Midwest Refining company and the Standard Oil company of California. The secretary of the in- terior, however, did not feel, even though the shipping board made claims that it profited thereby, that the department of the interior, as trustee for the 87% per cent due the state, the 52% per cent due the recla- mation service, and the 10 per cent ing a sufficient revenue for tts roy- alty oll, and thereore proceeded to make arrangements for bringing to a close the delivery of this govern- ment royalty oll and placing it for snle at competitive bid, after which an award was finally made to the highest and best bidcer, at the Mid. Continent prices. “Before the secretary finally de- clded to put this of] up or competitive bid, conferences were held with the director of the bureau of the budget and the shipping board on the sub- ject, and it was finally agreed that the shipping board deliveries should be brought to a close as soon as possible and in no event later than November 15. If it had been brought to a close earlier than this period the shipping board would have lost a barrel) is based on a crude charge to-the refinery of 45,000 barrels | daily and prices for refined products in effect at Casper and at -Tulsa, Okla., during November, 1921. It ‘s believed that this differential is fair! 2 == SEE — large sum of money under one of its contracts, and accordingly {t was al- lowed to fulfill this contract. It now develops that sufficient ofl fulfill- ment of this special contract was delivered about November 10, 1922. TRAD CASPERS FAMILY THEATRE £\ J B14) 1° ER pe “Where Everybody Goes” Ladies’ Gift Matinee Today anf to the government. In othe? words, assuming that $2.00 per barre! is a fair price for Mid-Continent crude, the price of Salt Creek crud should be $1.65 per barrel, Instead of $1.40, the price in effect at the time of the report. T~nis figure of 35 cents was ob tained after a detailed study of re finery yielCs, costs and realizations, comparison of freight rates from Casper and Tulsa, Okla, to various marketing centers and a comparison of prices for refined products that ‘were actually received at Casper with ————— WYOMING Continuous 1 to 11 : TODAY ONLY Carmel Myers “The Gilded Dream” —Also— Two-Part Jack London Story and Comedy . 9 “Society Swe Starring Brownie, the Dog TOMORROW Herb Rawlinson —In— ‘One Wonderful Night’ Valuable Prizes Given Away. Jack Lord and His Musigirls Present “THE NEW LEADER” "THE KOMEDY A Brand New Idea With All New an WITH A KICK in Musical Comedy d Novel Features SPECIAL ADDED ATTRACTION BILLY HOWARD King of Black Face Comedians Photoplay LOUISE GLAUM in “LONE WOLF’S DAUGHTER” LADIES’ MATINEE WEDNESDAY Two Shows Nightly, 7 and 9 Prices 10c and 40c SPECIAL ADDED With John Gilbert, in A Bishop Thrills. Douglas MacLean, Al St. John in Shows at 1, 2, 3 NOW PLAYING “HOTTENTOT” The Great Comedy-Drama of the Year. Hear ’Em Yell When Horses Clash! Hear ’Em Roar at the Mirthquake of Laughter, the Earthquake of A Thos. H. Ince Production. —Also— 730, 5, 6:30, 8 and 9 Cass Theater Madge Bellamy, Stars “The City Chap” IRIS STARTING THURSDAY ATTRACTION AT .- "| during this period of fifty-one days he Casper Daily The secretary of the interior mace arrangements with the Midwest Re- fining company, whereby they have agreed to pay to the government 25 cents above the field price for goy- ernment royalty oll delivered to them }at Salt Creek between the terminn- | ton of crude oll to the shipping ‘board epproxintately November 10) and January 1, 1923, at which time the government royaty ofl will be sold under the recent contract to the Sinclair Crude Ofl Purchasing com- | Pany. at Mic-Continent prices. “I think that you will agree with me that the Secretary has materially increased the revenue of the state of Wyoming through these transactions. For example, ‘between the termina- tion of deliveries to the shipping|. board November 10, 1922) and Jan- uary 1, 1923, approximately 460,000 barreis of government’ royalty ofl will be delivered, and the increased revenue of 25 cents per barrel for this period will total $115,000. The state of Wyoming will be benefited by an increased revenue of $43,125 over and above the amount which would have been received if the sec- retary had not required the Midwest Refining company to pay an addi- tional 25 cents per barrel during these fifty-one days, “You are undoubtedly, interested in the application of this differential to the Salt Creek field. As mentioned] jin the first part of this letter, a dif- ferential will vary according to the actual sales prices of refined prod- ucts and the price of crude, and it is not certain that the 85-cent differ- ential in November, 1921, is entirely applicable toCay. Upon the assump- tion, however, that this {s true In a general way, it {9 necessary to con- sider what is the average price of Salt Creek crude according to Mid-| Continent prices. Probably the most Cribune of Balt Creek crude will come in the class from 35 to 36.9 gravity, which ot present is $1.40 per barrel in the Mid-Continent district. On the other hand, some of it is above 37 gravity and will come in the class that is now $1.60 per barrel. I have been ‘advised by our field men that, if the ‘Mid-Continent sliding scale were in effect on government royalty oil tn Salt Creek during November, 1922, the average price for the govern- ment royalty ofl would have been $1.55 per barre!. If the government royalty ot] is typical of the total pro duction from Salt Creek and if the differential as set up in November, 1921, of 85 cents per. barrel is ep- Plicable today, it would seem that a fair average price for Salt Creek crude would be $1.55 minus $0.35, or $1.20 per barrel. It is, of course, $1.20 per barrel. It is, of course, un- unsatisfactory to make comparisons of a flat price per barrel with prices based upon a sliding scale such as is in effect in the Mid-Continent dis- trict. “Cordially yours, (Signed) ‘H. FOSTER BAIN, “Director.” jE eats Se $25.00 to $47.50 Values For $12.50 to $32.5 reels) Red Teg Suit Sale A ‘1-10-3t Many women in Holland are study- | ing engineering. LadiesKeep Your Skin’ With Cuticura Soap Cuticura Talcum GRAND couples who have won in best waitzers. $200 PRIZE WALTZ Ak i ss OR ono onont Championship of the State THURSDAY EVENING, JANUARY 11 Thursday night the judges will select from the 20 The best couple will be awarded the championship of the state and $50.00 in cash. FINALS CEMENT the preliminaries the four “HONOR FIRST” A triangular story of the tricolor by Geo. Gibbs. This wonderful picture in addition to Wall’s show present- ing ‘Lena Rivers,” starting Thursday. The second best $25.00 in cash. ' The third best $15.00 in cash. The fourth best $10.00 in cash. The Prize Waltz Will Begin at 10:45 Sharp. Better be on hand and witness the most interesting prize waltz ever held in. Wyoming. Admission 25c WoeSeRoetpatecse eho cte-eheese-aceatecte-efeete-atocte-ehoete-scoeioetedte ARKEON DANCING ACADEMY “Casper’s. Joy Palace” DANCING EVERY NIG! a Wm. Fox Production IRIS |HSB LAST TIMES TONIGHT Today and Thursday 7:00 and 9:00 o’Clock Zane CIRCUIT " V AU Grey’s DEVILL Headed by “WHEN FROEICM: TRIO ROMANCE Native Songs and Dances RIDES” DeLOACH & CORBIN GENE METCALF Polite Entertainers The Silvertone —Also— Two-Part Comedy “PARDON ME” Continuous 1 to 11 10c and 40c MAX FREEHAND DUO Novelty Surprise Extra Fine Photoplay Viola Dana in “Glass Houses” YOUNG GIRL ON WITNESS STAND (Continued from Page One) “When was this?" "to Mer “Last May.” “When you were sent away were You told you could not return?” “Yes, str.” “Why did you return?” “Mr. Hugh Clark and W. E. Hop- kins said they could fix {t up with the! Ku Klux. I got a letter from them telling me everything was all right to come back. I came back. Mr. Clark and Mrs. Hopkins were friends of my family and they interceded at the re- WEDNESDAY, JANUARY 10, 1923. “Are you positive it was Kirkpat- rick with the hood on?” “Yes, sir, I recognized him undér) his ‘hood and asked him why they} were going to send me away. He: gave me no reply.” { “Did they threaten your mother?” | feather her if I did not go."’ | “Who said they would shoot any-| body's head off if they looked out of doors?” “Dr. McKoin.” “What size car was it?” “A roadster. Dr. McKoin drove the) car. ‘Mr. Kirkpatrick sat on the) door.” | “Wasn't much room?” ‘Tho witness gigled = “no.” H At times Addie May stopped in her recital to wipe away a tear, especial-/ ly during her account of thé pleadings of her mother. | | “Dia they give you a lecture?” she | was asked. “No, sir.” re Mr. Clark and Hopkins klans- men?” quest of my sister.” “When you returned how long did you stay?) “About two: weeks. every day. I returned to Little Rock and came back home in August. I went back and returned again in De- cember.”” “T pelleve Mr. Clark is, I don't know | about Mr. Hopkins.” } { “How long had your parents lived I was scared|in Mer Rouge when you were ordered’ away?” | | “Thirteen years.” i “Where is Fred Clemmons who was) the house the night the hooded men RIAL Warning to Patrons! © 7 For Your For Your the South. If your heart is wobbly, or you get high blood pressure from laughing, kindly consult -your family physician after the laughter specialist! Starting Time of Shows—1, 2:25, 3:50, 5:15, 6:40, 8:05, 9:30 “They told her they would tar and) pe TODAY, TOMORROW FRIDAY, SATURDAY HAROLD LLOYD Dr. Jack Five. Reels of Laughter See thé comedy that is rocking the world from the North Pole to came for you?” “I understand he Orleans.” “Who was your family physician?’ “Dr Doddy. Dr. McKoin also, Mrs McKoin was my music teacHer." “What time did Fred Clemmon: 6 to your house?” ‘About 4:30 in the afternoon.” “How long had you been. taking vnusie lessons.” “About one year.” - “You going to Sunday School?" “Yes, “Where’ “In Mer Rouge.” “Were you going to school?” “No, sir, I quit school in the eightt grade.” “Didn't Dr. MeKoin tell you tha night you couldn't come back to Me: Rouge without permission of th: klan?” < “No, sir, he told me I never coulc come back.” “When were you advised that thr klan would let you come back?” “I got a letter from Mr. Hopkin: in May, telling me everything ha been fixed.” “Are you positive it was Dr. Mc oin?" is New a , sir. I knew his voice. knew him by his walk and his heigh and weight.” ugh! Health, Happiness, you see Harold Lloyd, 10c and 40c Forever. Durward Belmont. Harry Graham ..... A Bishop-Cass Theater L. P. WALL Presents “LENA RIVERS” LOOK AT THIS “ CAST OF CHARACTERS x Act First—Lena’s Home at Oakland, Mass. Act Second—Maple Grove, Kentucky, home of John Livingstone. Act Third—Same as Second Act. Night Shows 6:30 and 8 P. M. Prices Always the Same—10c and 40c ——-- Lawrence Deming Have Read the. Book, ¥ 'ed_Chase John Livingstone... w---.Teddy Bryan illi Joel Slocum . George Henderson Millfons Josiah Scovendyk. Have Caroline Livingstone. eee: and MISS LORETTA KIDD as Lena Rivers Seen the SYNOPSIS Play. [e] [eo] Musical Interpretations Chase, Kidd and Hanley Trio Ww od aes ee Deming ere é Derita Sisters You Dorothy Seymour, Bryan Sisters, Miss Etheline You One Really Thompson and Joe Derita and of Them? Should Styles and ai Chorus. et : —Also— 0 See This A Feature Photoplay ig Wonder- “HONOR FIRST” Don’t ful Show. Matinee Daily at 2 P. M. Miss It.