Owned and published by the Montana Oil Journal, a Montana corporation.
Address all communications to <18 First National Bank Building,
Great Falls, Montana. O- I. DeSCHON, publisher
12.00 Per Year in Advance, Canada and Foreign Subscriptions <2.60
Per Year. |1.26—< Months. Foreign fl-76—6 Months.
Published Every Saturday
Entered as Second Class Matter April 23. 1921, at the Post Office at
Great Falls, Montana. Under Act of March 3, 1879._
The Montana Oil & Mining Journal endeavors to Insure the honesty
and trustworthiness of every advertisement It prints and to avoid the
publication of all advertisements containing misleading statements or
ADVERTISING RATES ON APPLICATION
THOUSANDS OF MINE OWNERS
Ownership of mines has been widely diffused in recent years.
'Mine owners' today (mean hundreds of thousands of people in all
walks of life. When we speak of a nfine owner as a single person
are talking the language of 1896 and earlier. This change more
than any other modifies and alters the situation which existed forty
years ago."—From the Mining and Contracting Review.
WE ADMIT WE DONT KNOW
_ (Continued from Page One)
He la in-1
the demand in Montana,
sured of ample crude and a more
Alberta and Saskatchewan markets
command the price of crude in Mon
These two provinces use a
bout as much gasoline, together,
as Montana uses.
Since the dis
covery of oil In Kevin, the price
structure has been based entirely
on the Canadian crude market.
How long will the tall continue to
wag the dog?
We would like to see some mark
et expansion: We know that the
market for refined products Is avail
people in the Montana oil industry
can and will bring this about for
we are beginning to weaken in our
implicit belief that fairies and
We know that only the
RFC Mining Loans Offer
Greatest Opportunity To
Independents In History
With hundreds of mines requiring ilnnnres in Montana today,
only 4» applications for RFC loans have been filed with the mining
division at Washington, D. C.
Tills figure was reveal«! to the editor of the Journal by John
Norton, engineer in charge of mine loans, during Ids «vent visit
Mr. Norton stated that the work of his department has become
so systematized that it is now |K>sslble for an application to go
through within OO days, which Is much faster than other methods
Loans up to $20,000, can be ob
tained for development work on a
placer or quartz property where
there te sufficient ore In sight to
justify further exploration,
quartz mines this money can be
used for the purchase of tools and
drills but not for mills or large
machinery. In placer mines it cam
be used only for testing, the pur
pose being to establish a sufficiently
large ore body to justify a larger
loan for the purpose of a washing
plant. In both Instances, the devel
opment loan Is payable out of the
proceeds of the subsequent commer
clal operation of the mine.
It is apparent to the Journal that
Montana miming men have nome oth
than themeelves to blame for
their failure to take advantage of
the opportunity to secure a loan.
Any who has a property that will
justify the approval of a mining en
gineer who has as a back ground
years of practical experience in mine
operation, can get a loan,
case of Class "B" loans lor $20,000
or less for development purposes,
the applicant does not have to go to
amy expense. If his property Is not
good enough to justify a loan, he Is
promptly notified. Otherwise he can
expect to get his loan through in
around 60 days.
Application blanks may be se
cured at the RFC office at Helena,
by writing or calling in person.
. Silver Gas
Chief Monto Gas
Royal Scot Motor Oil
Ring-Free Motor Oil
Our Deisel Fuel
GREAT FALLS, MONTANA
"An all-Montana Institution
goblins manage the Montana oil
business. We have seen at least
two good refinery propositions sink
out of sight because Independent
producers refused to "stay put."
Accordingly, It Is our opinion that
there is n» blame on any Individual
or corporation but the blame rests
collectively on the Independent op
erators who year after year are
without a market for their crude,
A visitor to the asylum at Warm
Springs developed a parallel for the
situation. He remarked the danger
to the single guard ruling over a
large number of patients.
"They'll gang up on you and
kill you, some day," said the visitor.
"If they knew enough to gang
up, they wouldn't be here," replied
Those who go to Helene to make
personal application will be given
advice and assistance in making out
the blanks. The forms must be
sent to Washington for approval.
When approval is given, the matter
te referred to a Montana engineer
who conducts an Investigation and
thereafter makes recommendation
on which the final decision of the
board is determined.
The money te made available in
whatever sums are necessary for
the conduct of the operation and
is expended under supervision of
the government engineer. As a re
sult, the mine is provided with ex
pert supervision that might not be
available to the operator of modest
means. Inasmuch as the RFC te
dependent upon the success of the
operation to secure repayment of
its loans, the government super
visor makes every effort to make
the mine commercial. In the case
of development loans, the RFC is
likely the loser in case commercial
amounts of ore are not developed:
the greatest ''break'' the Indepen
dent miner has ever been given.
Mining men familiar with the pro
ceed u re point out that there should
be more nearly 400 applications for
loans in Montana than 43.
TO THE SUNBURST BADGER
THE SUNBURST BADGER
person spread out on the ground,
face down, with hands, arms and
"There was a thief in my room
last night and 1 thought it was my
"Well, I didn't miss anything."
Definition of "Intoxication;" A
legs outspread to keep from going
"Did he get anything?
They say that papa Dionne is
getting a divorce. He charges his
wife with being too overbearing?
When a man Is' exposed he freezes
to death but when a woman Is ex
posed he burns up.
"Doctor, my wife has insomnia
very badly. She very often remains
awake until 2 o'clock in the morn
ing. What shall I do for her?"
"Go home earlier."
Because We Can Afford To Wait
times as well as we could do with that
dollar jnj f Cut Bank. There h,ave
been notable exceptions. Last week,
as an example, we picked up a royalty
in Cut Bank at a price of 75 cents per
cent per acre. Although it is ahead
of the drill, we belive it to be OIL
LAND. At any rate, the price is so
low that our rarahers can well afford
to accept the odds offered. It is
in an area where large operators will
this year drill two wells, so if THEY
are willing to take the risk, we feel
that our investors can do no better.
of averages. In other words, never
expect more than 50 barrel wells and
base all royalty investments on that
wells come, they are extra value to
offset the risk. The man who bases
his jnvstment on 1,000-barrel wells
will likely lose, for there is only one
such well-in the field thus far.
The Lander well brought a multi
tude of requests for royalties in the
west area. Many believed that the
Lander proved up the entire west
slope for gusher production. Accord
ingly, they were willing to pay any
price at all to get in before it was
too late. To the disgust of many we
have not purchased a single royalty
in the district since the completion of
the Lander gusher. We found a few
rovalties available but all of the
PRICE? were based on the exoectation
of gushier production. Accordingly, we
made no deals until this week when
we finally succeeded in getting one
and one-half percent royalty on 160
acres in the west slope district that
hts all the possibilities, w believe of
the Lander. At any rate, we are buy
ing it on the basis of wildcat royal
ty. It is Iss than three quarters of a
mile from production and less than
half a mile further west than the Lan
der gusher, although lower structur
ally Results of drilling EAST of the
Lander gusher indicate to us that it
will be necessary to go farther WEST
to nick up Sunburst sand production.
THAT is the important information
we have gleaned from the Lander
well, and which information we may
be capitalizing in this purchase.
Royalty PRICES are one thing and
royalty VALUES are another.
The price should be determined by
the value, ordinarilly, but that is not
always the case.
In the stock market we frequently
see the price of stocks advance to a
place where the dividend rate of the
corporation will not pay one per cent
per annum on the stock :
Offer a man an investlment in a
stock paying only 1% per annum and
he will refuse to buy. Therefore, the
PRICE of the stock is determined by
something other than the VALUE.
If we were to figure out thé total value
of all the stocks, based on market
prices, and divide into the total an
nual dividends, we would find the
reason why the stock nfjàrket is a
GAMBLING PLACE ratHter than a
Fortunately, royalties are not bar
tered around like stocks and are less
likely to have artificial valuës placed
on them. There was a time in Kevin
history when royalties sold for far
more than they were worth. The per
son who refused to pay ; the going
price had to stay out. As a result,
many were led to pay higher prices
in the fear that if they didn't buy
THÉN, they would have no opportun
ity of participation in the profits
This condition is again at hand in
Cut Bank oil field. Royalty prices
have been steadily advancing. Bar
gains are growing fewer and farther
between. We of this organization re
fuse to buy unless it is a bargain.
However, we have a more important
factor in royalty PRICES. That is
the COMPETITION of Kevin-Sunburst
The man who has a dollar to invest
in northern Montana today decides for
hiirtself where he believes his money
will do the most good. The careful
investor is not swayed by the fear
that if he doesn't buy a certain roy
alty that he will not have, another op
portunity. He will decide, rather, a
bout what he expects his money to do
for hijm, and wait until he can get just
what he wants.
At, the present moment, there is
comparison between the VALUES
afforded by the two fields. We have
been able in recent months to do in,
Kevin-Sunburst with $1 two or three
Should 1,000-barrel '
Royalty VALUES are based upon
the amount of oil that is likely stored
in the ground beneath a given tract of
land. The PRICE we pay is deter
mined largely by excitement over the
possible recovery of that oil. Some
investors are willing to pay TWICE
as much for a royalty that is to be
drilled immediately as they will pay
for adjoining land on which no im
mediate development is promised. That
circumstance fmay be well and good,
if the price is low enough—as based
on the VALUE or probable value of
But when DOUBLING
the value means to cut the ratio of
probable returns down to less than
10-to-l, then we doubt that a man is
justified in paying the price for so
called "quick action"
Last week a royalty investor from
Spokane visited our office, anxious to
put some money into Cut Bank. -
Tell me where the big production
of the field is going to be," he said.
I want to invest sotate money in'that
district and I am willing to pay more,
in order to eliminate as much as pos
sible the element of chance.
We feel quite sure that the royalty
we are purchasing is oil land—the
nearest well was rated at 40 barrels
initial. We are naving a price low
enough so that if this 160 acres yields
ONE-TWENTIETH as much oil as
the average expectancy of the field,
it will pav a nrofit. On THAT factor
we base the VALUE and hv comnari
son we know whether the PRICE of
fers what we term a BARGAIN. We
believe this purchase a bargain.
Some of our members already have js
some royalty on this tract. We will s
divide the one and one-half percent §
among others who are less fortunate.
The descriptive plat will be sent to
those who have requested west slope
royalties and to any others who re
quest this particular plat.
We told him that if we knew posi
tively where the biggest production
of the field will be found, we would
possess an occult power which would
make it unnecessary to bother with
selling or giving information ; further
more that we could sell that infor
mation, were it positive, to one of the
major companies. There have been
good wells in all parts of the field.
•Off hand, we say that the biggest
wells may be expected along the gas
oil line on thç east edge of the field.
That is the best rule yet evolved. At
the same time we find the largest well
in the fiéld, the Santa Rita-Lander,
is the field's westernmost well.
There is no better way to work in
Cut Bank field than to play the law*
Great Falls, Montana.
LANDOWNERS ROYALTIES COMPANY
Without obligation please send me your current plat of
4-4-36 on royalties on the West elope of Cut Bank oil
four Name in Full)
CREAT FALL«, MONTANA
Qo1f«r (far off dn the rough)
"Say, caddy, why do you keep look
lug at yoor watch "
Cadd: "It laa't a watch, sir, k'»
The Nudists were
masquerade and the ladles were
worrying over what to wear.
"Well," said one, "with my vari
cose veine 1 think I'n go as a road
This was told by the late Geo.
Enoch H. Crowder. Back in the old
days there was a colonel named N.
A. Dudley, who, because of his ini
tiate, was commonly known as
'North American" Dudley. He was
very fond of giving dinner parties
at his borne and on euch occasions
invariably proposed two toasts, the
I first to "The Church" and the se
I ron< * to "Th« Ladies.
ley, .who was very deaf, could not
hear the Colonel when he proposed
these toasts but, knowing his cus
tom, would invariably remark after
the toast to the Church: "Don't
he silly. Colonel, you know you
haven't been in one but once In ten
years and then you didn't stay until
the service was half over." Which
was alright until one day the Colonel
made a mtefcake and mixed his toasts
• • •
"My boss says he'll give me $10,
000 if Til be hds sweetie.''
"Gosh, dearie, he ain't got $10,
know he hasn't, but ain't it
a good offer?"
First Hunter—"Hey BUI. You
First Hunter—"Then I've shot a
Johnnie was gazing at hto one
day old brother, who lay squealing
and walling in his cot.
"Has he conte from heaven?"
"No wonder they put him 'out,"
• • • • • • •
"I'll be frank with yon," said the
young man when the embrace was
You're not the first girl I
And I'll be frank with you," she
answered. "You still have a lot
"Would you love me the same
if' Dad had lost all his money,
"He hasn't, has he?"
"Of course, I would, you silly
ON LONG DISTANCE CALLS
1. Rates are lower all day Sunday.
2. Person-to-person and stadon-to-station
rates are reduced every night at 7 p. m.
Telephone Easter Greetings
"Where is the head bookkeeper?
"He has gone to the races.
■"What! In the midst of our an
nual audit ?"
"Yes, sir. It was our only chance
to balance the books."
Prof: "Your wife has a new
Scoff: 'Wo, she hasn't."
Prof: "Well, something's dlffer
Scoff: "It's a new wife.
"Papa, Tot is de deefrance be
tween prosperity end depression ?"
"Veil, my boy," papa replied, "in
prosperity ve had vine, Timmen, and
song, but in depresion all ve got
is beer, momma, and the radio."
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THE SUNBURST BADGER
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