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/—Vont PUBLISHED WtiXlY ESTABLISHED 1921 Owned end published by the Montana Oil Journal, a Montana corporation Addreee all oommunteatlone to <1$ Tbwt National Bank Building, Great Fails. Montana. Q. 1. DeBCHON. pubUaher SUBSCRIPTION RATES: $1.0$ Per Tear In Advance- Canada and Foreign Suhecrtptlona $$.$• Pee Tear. $1.15—6 Months. Foreign $1-76— « Months. Published »very Saturday Entered es Second Class Matter April 23, 1921. at the Poet Office at Great Falla, Montana. Under Act o f March 8, 1879. _ The Montana Oil ft Mining Journal endeavors to insure the honesty and trustworthiness of every advertisement It prints and to avoid the of all advertisements containing misleading statements or SIGN THE REFERENDUM PETITION Pe+itions are beintr circulated throughout the »täte in an effort ren . , T r. ,, i qv* _ t i,_ ,.™. L-alonn ] aw _from becoming to prevent House Bill 196—the new saloon law irom effective. Every right-nnnded Montanan should sign this pen tion which merely gives the people the opportunity of voting on the ».loon bill at the nez. ,/ener.l election^ JJ«- «t£j* sible that the people will vote in favor of a return of the sa ''j we doubt it. ...... It is difficult to find out who sponsored this legislation. It is. certain that it was not sponsored by the bootleggers. The church element desirintr the return of prohibition might havtp justly spon ei einem uesnm^, . v, r f soned it, for it would mean prohibition' ™ thin five years Churchmien wouldn t use such tactics. bOMEBUDi put up money to stwinsor this hill. The indictment indicates it was the distillers. , It is hard to imagine them so short sighted. Under the proposed law the saloon keepers are compelled tO | pay license fees and in addition to buy their liquor at the state linnnr stores which add a heavy profit There would be no money STÄk. at 25 cents Lr the, bar. What would be the result? The moonshiners are already firing up their stills to pro vide bar liquor. The state liquor stores will not get increased busi ness and we will have another era of wood alcohol blindness. Except for the revenue feature, the measure w "® u ld never have passed the legislature. In that the legislaltors erred. It IS aouDliui whether it would increase revenue. We have talked with many who ardently fought prohibition. Not one of them is in favor of the saloon measure. At any rate, the people of Montana should have the right to vote on the issue. Meantime someone should set a bear trap for the predatory' interests which have financed the publication claims. advertising rates on application measure. SUE FOR ACCOUNTING Suit for accounting on a 50-50 operating agreement has been start ed by John F. Pewters and others against Texas Pacific Coal & Oil Co. Pewters and associates secured one judgment for $70,000 against the T-P and that suit developed the expenditures of the operating company as against receipts from sale of oil. Pewters claims that $70,000 or more is due him on th® operating agreement. '2. J. McCabe, H. C. Hall and Edward C. Alexander ACIDIZING DOWELL INCORPORATED SHELBY, MONTANA Telephone 133 CODY, WYOMING—Telephone 434 B I • r A complete set-up for alert dealers Silver Gas Chief Monto Gasoline Reyal Scott Motor Oil Ring-Free Motor Oil Superior Distillate Superior Diesel Fuel Products to meet the needs of Mon tana buyers in a completely satisfactory way that brings them back for more. « An all-Montana Institution"—Great Falls 0* a r are attorneys for Pew-.vs, as in th- pu-v.ous case. OHIO'S GOLDEN CELEBRATION. euperltatendent of Ohio Oil company in Montana has been notified of the coming golden celebration of the oil industry to be held at Findlay, Ohio, the week of June 30. Nine employes from each of the seven districts of the Ohio will have all expenses paid to Findlay during the celebration. O. J. Glffin of Bobbins, N. M.. will re present the Rocky Mountain dis trict. Lee YeaKey, Sunburst ba/lyer SILENCE WITH A BANG An old lighthouse keeper had held bis job for thirty-six yeans. Every six minute« during those thirty-six years a signal gun had boomed from the lighthouse tower as a warning to mariners. One night a t the beginning of hie thlrty seventh year, the old keeper turaed in. and was soon deep in slumber. At exactly 12 o'clock the gun. for the fir8t ttaie failed to go off. The old keeper leaped from his bed | -g %*"J°* t * X* Godj what was that!" Little Joan was caught stealing jam from the jar on the pantry shelf and was roundly spanked by her mother as this was her third L i tt ie Joan flew upstairs crying | to break her heart. (mother went upstairs and heard Joan in the barroom still crying, «and sobbing "Now you done it." The mother opened the door and ; *°°**i°' m irror. "Done what?" inquired the .♦ .. T „o„ . i . . . | Naturally, folks who cannnot change their minds never get bet-1 ter ones, I WlfftllHf w iff 1HW r il WE "LISTEN IN ON AN INTERVIEW * * "I am baying oil—in underground storage." This statement, although a fact, was a surpris« to ns, coming as It did from a member of Oils organization who came to the office to complete his payments and here engaged in conversation with another visitor who was not versed in royalties. The conversation which ensued gave ns the novel but accurate viewpoint of the member who so described his par chase of landowner's royalty. The other visitor asked him: much oil—or do you know?'' has been getting about 50 per cent per annum on his investment," hand!« actually borrowed money on his life insurance, to pay for it. After the dril ling of the Montana Powcr-Neil and other wells which proved up the area between the main field .and the so-called "south field," he was on "easy street." He sold one royalty for TWELVE TIMES what he paid for it. That paid off his loan and left hfan with a small investment in the balance of the royalties, which will provide him with a substantial income for the rest of his life. -more than he could afford. He We are troubled by members who do not grasp the principles of royalty invest ments as does this man. Many people hear that someone else has made money In royalties, so they send $100 or $500 or $1,000 to o broker and say: "Buy me a good royalty." Then they sit back and wait for riches to shower down upon them. Occasionally such an investor makes a big profit bat we are safe in saying that it is the exception rather than the rale. The man who makes money in royalties is the one who realize« that he is BUYING OIL IN UNDERGROUND STORAGE, and treats his Investment as snrh. He know* something of the prin ciple« of oil geology and oil field op erating: he knows how to figure for him self ROYA1/TY VALUES, based on the probable amount of oil in the ground. He know* that whenever he buys land owner'« royalty that he is buying oil that will be delivered to him free of cost of production, as the operator brings it to the surface of the ground. He knows that if a well costs the operator $20,000, the operator sees his way clear to get back hi« $20,000 plus a profit of two, three or perhaps five times his investment- The royalty in vestor knows that while the operator is getting his $20,000 back, the owner of one per cent royalty is getting «200, for he gets 1% of all the production of the ground. Thereafter, if the operator makes a profit of «20,000, the royalty owner is getting another «200 — and so on, on each well drilled. If an op erator drills 10 wells costing «20,000 each, the owner of 1% royalty will have received «2,000 before the operator makes ONE CENT of profit. We were highly pleased with the con versation above recited and after the second visitor had left the office we enquired of the member: "Where did you get all those facts and figures on royalties? "Yon ought to know; from your own publication« and none other" be aid, adding "I have been reading your staff for fifteen year*. Don't yon think that I ought to have some ideas by this time?" e 1 "Would you sell some of your royal ties?" asked the visitor. 'How "I'll sell anything I have, except the wife and kids," was the rejoiner."I will sell my best producing royalties any time I can get a price that approaches one third of the vaine of the probable oil in the ground." No, I don't know," answered the but I know that there is surely That is my If each acre member, «200 worth in each acre, investment in this royalty, produces «200 worth of oil, I will get my money back. If it produces «400 worth of oil per acre I will get my money back and 100 per cent profit. For every extra «200 worth of oil per acre I will receive 100 per cent profit." 1 Here was another one. He figures this way: if he believes that the future production per acre of a tract of ground will be 5,000 barrels, he will sell oat on a basis of 1,666 barrels. He gives the buyer a chance to get his money back plus 200 per cent profit. "Wliat if there is a big gusher on the tract, earning yon several hundred per cent per annum?" we asked him, to get his line of reasoning. I don't know anything about oil" How much oil can said the visitor, you expect in an acre; in other words, how mach oil in an acre in Oat Greek oil field? I know something about that field, as I lived in Lewistown during the boom." The member was unable to answer this question so we supplied the answer: "Thirty five thousand dollars per acre. "But that is no criterion," he said. "Cat Creek contains only 600 acres—I doubt that any acre in Out Ba nk will produce «85,000 worth of oil." "How much bas Cut Bank produced per acre?", was the next quest io n. We wondered whether our friend would be "stumped" by this one. He did not About «2,250 per acre." "I would not sell until It was off its peak," he replied quickly. The time to sell is when it starts the decline—and we all know that every oil well declines from its initial production. I suppose that a man can make a mistake once in a while and sell ont on a well like the Baker or the Lander, bot I know that the fellows who sold ont at the peak on the Howling and Byrne gushers were smart. 1 i "I sell part of my royalties to my friends, once in a while when 1 need money, and I always aim to give them a chance for a profit. After I have tak en the risk I think I am entitled to a profit. 1 use my knowledge and money to bring them an opportunity. When they buy a producing royalty from me that I have nursed up—you might say— from a wttdkltten. I see to It that they are not paying more than the vaine of the oil in the ground. If my guess is too low, I am satisfied with a fair profit and glad that my friend has made more than I expected him to make. That Is the case of the Ewing royalty where I sold too cheaply. But I needed the money at the time and it did me a lot of good, and the fellow to whom I sold hesitate: 1 1 The visitor had to be told how the average recovery per acre is figured. Our member took out a pencil plained with surprising clarity, oonclud If this tract on which I am now baying produces m much per acre the average developed acre in Ont Bank has yielded in the last five years, 1 will have my money back pins a profit of 1,000 per cent." - ex ing: i i For the guidance of those who are not foUowlng our new royalty buying program we may say that we are today baying royalties that have as great—per haps greater—opportunities than we have ever before enjoyed.—We wiU supply details to those who enquire. This member was one who plunged heavily on South Cat Bank- In the day* before there was any certainty of production in the "sheep pasture" be tween the little Montana PswesMUmero and the Texas-State «Hacovery 1 1 1 pumper W well, he bought all the royalty ho could 1 = 1 1 Landowners Royalties Co. Box 1225 LANDOWNER'S ROYALTIES COMPANY Great Falla. Montana. 1 Without obligation please prove me with data re. royalty : opportunities referred to in yours of 4/8/87. B8~ (Your Name In Full) HEAD OFFICE OEEAT F ALI* MONT All A i g I hgi l| Vg j U I« ifmk.i*) • Mary." said her mother to my little nelce, ''every thœ you are naughty I get another gray hair." "Gee, Mom," the kid snapped back, " yon must have been a ter ror when you were young. Look at grandma." • • • • • Father and son were enjoying an afternoon In the country. "Just fancy, William," said the father, pointing around him, "at one time these fields were covered by sea and fish were swimming about) on the very spot where we stand." "Yes, Pape," said little William suddenly stooping. "Look, here's an empty salmon can." 'Melvin! MELVIN!" "Yes Mama?" "Are you spitting in the fish bowl" "No, but I been coming pretty close." "Doesn't it strike you that's a |q Ueer harp that new woman angel j s lugging around?" asked St. Peter, with a nernlexed frown Vat teSahanTTt's a radio 8et " answered Gabried. "She's on (joying her husband's howls from A Scotsman, leaving his friend's house where he had been paying a visit, held out a nlckle and a dime Är'*'"'' ^ WMC ' ~ "" Young Sandy, being a cute, wee beggar, said: "Ach. Mr. M'Tavlsh, was a,iray6 taught no' to be ^ÄviV^to^ "^utdow. re plied "Weel, Sandy, for bein# a good boy, and not being greedy, • • « • • A visitor at an asylum was watch ing one of the inmates pushing a wheelbarrow upside down. "That's not the way to push that thing," the visitor exclaimed. "You've get it upside down." "Oh, have I?" answered the luna tic. "I used to push it the other way, and they put bricks in it." , • •••••• ♦ I'll gie the big one to ye." "I bad a date with a mind reader last night." "Sure enough ? Did you have any "No, he just sat around all ev ening and blushed." fun?" that It would sell its production to .. ' .. .. Northwest Refining Co. for $1.26 per barrel, which is the MSdoontl *? nt .». I>rIce for crude °* 36 gravity. At the same time. Santa Rita an «»««* 1 t , 0 .r oya . t 1 y ® W! ? €rs that «»ey might sell the oil at the same price if they so desired, else be free to tell to some other buyer who would pay a higher price. About 300 bar rels per day of ro^Ry is ,n * volved. It is understood that roy alty owners are signing up division orders, glad to be assured of an H ':r armar k et aI1 oil produced, rather than to depend on ^/uvf rta Dty °P en I ? ar * ket with a posted price of $1.45 per barrel. IMPERIAL IS t Conti oed from Page One) The turmoil resulted from an nouncement of Santa Rita Oil Co. Home Oil & Refining company has been for several months buy LAURELEAF The New Regular Grade GASOLINE Made in Montana From Montana Crude INDEPENDENT REFINING CO. Billings and Laurel ln« Oat Bank crude -from Cobb, Par dee and Nadeau Brother* for a price understood to be around $1.10 per barrel /which price haa cause no break in the market. •'There is no further explanation or statement to be made", eaid L. B. O'Neil, president of Santa Rita, this week. "The Northwest Refin ing company is witting to pay $1.26 per barrel and Santa Rita is willing to accept that price. As to the roy alty owners, we have already stated they may f 11 their with ours and have a market for production or if they can do b^er elsewhere w© will be happy t0 deliver their oil to any other j, uyer they may secure." He further explained that Santa RHa is mere !y mindlng jts own affair* and has no desire to fix prices or alter price s t ru <?tur€8. imperial runs have been Increased from 50 per cent up to 80 percent, dur ing the past week, marking the beginning of the season of increased demands for crude for the Imper lal'a refinery at Regina, Threats that «price cute would be made by International Pipeline and Toronto Pipeline have failed of fulfillment. About 60 per cent of the production of the field is be ing sold at posted price.