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^Journal fcWa ESTABLISHED 1921 PUBLISHED WEEKLY Owned and published by the Montana Oil Journal, a Montana corporation. Address all communications to 618 First National Bank Building, Great Palls, Montana. O. I. DoS CHON, publisher SUBSCRIPTION BATES: IS.00 Par Year in Advance—Canada and Foreign Subscriptions |2.60, 11.26—6 Months. Foreign |1.7B—6 Months. Published Every Saturday. Bntered as Second Class Matter, April 23, 1921, at the Post Office at Great Falls, Montana.—Under Act of March 3. 1879. Per Year. The Montana Oil & Mining Journal endeavors to Insure the honesty and trustworthiness of every advertisement It prints and avoid the publication of all advertisements containing misleading statements or claims. ADVERTISING RATES ON APPLICATION "CONGRESS BARES SALARY LEADERS The above statement was recently headlined in the news papers. Then followed a list of salaries ranging from over half a million annually down to $100,000. .. Such items are perfect rabble-rousing publicity. Nothing is said about the fact that on each of these salaries, government gets the lion's share. After each such salary or earning figure there should be another figure showing government's tax share in the salary which the Federal surtax alone, not counting nor mal Federal tax or state income taxes, graduate up to a maxi mum of 75 per cent. If government taxes on each large salary or income were headlined, it would be shown that government and not the individual pockets the bulk of the money. I ■ PR0RATI0N IS (Continued from Page One) Kalispell to use Cut Bank crude and nothing is said about excess production in Kevin-Sunlburst, leav ing an excess production of 5,174 barrels daily of crude oil. The in strivment commends the Montana made gasoline campaign but ques tiens its efficacy in solving tthe problems of producers and suggests that a campaign of price cutting might be a better plan. Supreme court decisions are quoted to establish the nature of "waste", maintaining that there is much economic waste in Mon-1 tana as in other oil producing states which have adopted prora lion Other decisions regarding drainage of lands by active wells while adjoining wells are forced to remain idle, are quoted, also the matter of abandonment of walls which are making a large amount "The buck should not be There is no reason, says the in struiment, why proration should lim it market expansion or oil field de- ! velopment. "If new- refineries desire J to enter the industry and consume j Cut Bank and Kevin-Sunlburst crude ; oll the oil will be available to j them. If operators desire to drill! wells the new wells will have their | production taken care of. As to ex-j isting contracts, says Mr. Hurd, j tCiey were necessarily made in con-j temptation of the conservation act, ! "All of "those states (now having 1 proration) as well as Montana, have exactly the same problems; namely j an excess production of oil over | the market requirements. Those ■ stales long ago saw the futility of j destroying the stability of the oil! industry if some producers were running to capacity and others not allowed to produce oil at all. The question is the same in all of the states Proration merely that production shall be in accord as of water. passed to the 'board of railroad com missioners", it says of Finding No. 6. of t.he board's order. means m si PARAFFIN SOLVENT DOWELL INCORPORATED SHELBY, MONTANA Telephone 133 m m "Registered U. S. Patent Office III Acclaim ARRO GASOLINE the Super Motor Fuel DUBBS CRACKED AND STABILIZED FOR CLIMATIC CONDITIONS Oil « REFINING COMPANY LEWISTOWN, MONTANA TWO WELLS (Continued from Page One) | l, SE NB'4 NE *4 26-35-4W, a j little less than a mile northeast of j the Enn-eberg producer. It is re I ported at 1890 feet after having had a good showing of gas in the Sunburst sand at 1845. The bit was still working in the Sunburst at 1890 feet, Indicating that it is checking a little lower structurally ! than the Parrent well. They expect j to have to go to around 2050 to ■ reach the lime contact. ... , , I The thlrd . we î ,.,. n d 1 w ' h,< jh resumed drillmg thi_ ve k, , 8 Kevln-Oommunlty Fee No : 1 ;. 4 ^ ; « «*hitly west oi ! the Enneherg well, 11 is " ow at 1300 f e eL having made I 100 feet of new hole, Frazer & Smith, contractors expect to tun 'our until the well is completed,, weather permitting, ! A large number of leases have , j been taken in the district during , ! the winter months. Considerable land has been purchased by opera. | tors in fee simple. West Kevin Com- ( intimity company bought several hundred acres in fee sintpie on tax title, from Toole county. Crumley & p rar y of Cut Bank have bought | several tracts in fee simple. Fifty six Petroleum. Big West and ot)h. ers have taken large blocks of leas a rice with the market demands." | The brief concludes; "We respect-'^ fully urge that the order and find-j^g ings of Fie board be not approved 'by Your Excellency (the governor); that they be disregarded and that appropriate steps be taken to have a fair, impartial and proper solu tion of the problems confronting the oil industry." The brief was served upon the hoard and upon the governor wdio had fixed March 1. as the time 11m it for filing briefs or exceptions, ■ es, among others. SEND A CONTRIBUTION TO THE SUNBURST BADGER «Sunburst "Why did you divorce your hus band?" "Incompatibility." "Yes, He always woke up about two A. M. and wanted to go Ihome." "What caused the explosion at your house last night?" "Powder on my coat." ... ... ^ get Tn ^trouble Through^t-wu reading errors. Publishing the foi lowing story caused an editor to leave town. "Mrs. John Breinlinger preeent ed her ihusband with an eight pound baby girl on Thursday last. Mrs. Breinlinger was formerly Miss Anna Gray and very popular locally. gj g| fTTf mmmm. TTT iTIT/IÏÏ'ir \T!T MM OUR CLEARING HOUSE FOR CONFLICTING VIEWS HERE are many elements of att raction in our business of dealing in royalties. Not only Is it one of the most exciting forms of Investment of which we know—with the thrill of drill T to buy all the oll I can get in under ground storage." Continuing, he said: "1 don't care about quick development. 1 want to buy SURE oil land If such a thing Is possible, und 1 am willing to wait. Oil is the one thing that is going to Increase in value." The man who sent in the clippings re garding the proposed tax on fuel oil said: "Isn't this likely to put the oil in dustry into the doledrums? Will this not either put the price of fuel oil so high that none will use it else the lowered price will undermine the profit of the re finer so that our oil will be left in the ground indefinitely?" Those) two men are thinkers. Likewise the man who sent in the Christian Science Monitor clipping in which the writer said: "The fact is that, ever since the dark prophecies were first uttered, new source« have constantly been tapped . . . For there Js a tremendous area still remaining unexplored—an area about 20 times the size of the United Kingdom. That much of this area would be oil-bear ing is the verdict of geologists. They describe the area as of geological for mation which may contain oil. Oil men thenisHves speak about the possibilities without any such qualification." The member who read the article was not inclined to accept the "oil famine" theory proposed by Coyle. Rather, he read something else between tha lines. He wrote: A growing propaganda regarding the coining oil famine has been apparent to me for some time past and J have been waiting to see the answer. The an swer comes will» the introduction in con gress of the bill to put a one-cent-per gnlion tax on fuei oil. That Is the work of the powerful coal luirons. The fuel oil industry has grown into such importance in this state that I can forsee the day when the gasoline content will no longer lie the important part of the crude oil. I am not an old man but I can remem ber when KEROSENE was the part of crude that determined tile price. Gasoline and fuel oil were a drug on the mar ket. Then came the use of gasoline, and kerosene failed from the picture. None ever refers to the worth of crude In terms of the value of the kerosene. Whereas they used to pour the gasoline into our kerosene In order to get rid of tint former, now they pour kero sene into our gasoline to get rid of tile kerosene. ■ Gasoline con tent determines the value of crude oil. About half of the barrel of crude Is fuel oil. So they started developing a market for the fuel oil. As a re ult, thousands and perhaps hundreds of thous ands of oil burners have been in tailed not only In factories but in private homes. People who have burned fuel oil in their homes , would never go back to coal if they could afford to buy fuel oil. But that is the "catch". The cOa 1 barons have an idea that tl|ey can force people to go back to burning coal by adding 42 cents pep barrel to the co t of fuel oil. To accomplish this end, it is necessary to prove to the public that they can't depend on the supply of fuel oil; that in just a few years there will be no fuel oil available at any price; and therefore that people should burn coal anil save the oil—keep it In the ground, for the use of future genera tions." The letter goes on to comment on the attitude of the administration and points out the apparent error in claimp of the coal barons as to the amount of revenue that would come to the hard pressed government coffers through such a bill. To accomplish the objektive, he said, it will be necessary for fuel oil sales to TREBLE—which is not prob able in the face of price increases. vgj ^ jp ing wells which may without warning burst into gushers—but it is pleasurable to watch the liyes of people wlio have profiled from their royalty Investments, We baye » letter this week from an inactive iiumibcr living In Tacoma. He has been out of the market depression. He bad ben quite well-to-do and had only is'gun to investigate yoy lies when the depression struck, wiping him out. His stocks and bonds went the usual route. He did n«t or could not— fortunately—sell his royalties. One of them was a royalty on the Rruins farm in Kevln-Sunburst field. He paid a high price for that royalty, we thought, when lie invested $2,000. He is an old man— over 80 years of ago—and therefore on« who could not buy in advance of the drill and wait for the profits which come only when development starts. Ko his high-priced producing royalty was the Ix^st, The member who sent the article from the Magazine of Wall Street made no comment. The article is based on the statements that new discoveries are not equal to the consumption of crude and de pletion of present fields. The author, A. T. Sburick, accept« these statements and point* to the oil stocks as a great in vestment opportunity because, he says, "It is a well-established fact that the peak petroleum production (and concur rent high price level for oil) will occur far in advance of the ultimate extuun - tion of the petroleum supplies." He con clude« that ince the oil production will theoret ically peak in 1048 with the (practical error limited to around two years. M He says: "The oil industry Is out stripping increases In all other major lines at a rate that {mints to a rather formidable load on the producers when industry in general again becomes ac tive." We beard from him last w<*ek after a long interval of time. He is out the royalty market because of lack of funds HoweVer, his Hmins royalty has proven a God-send. In the "hard times" of the past few years this royalty has earned him FIVE THOUSAND, ONE HUNDRED AND SEVENTY DOLLARS. That sum has been paid out to him at a time when ho needed it more, per haps, than at any other time in his life. He, wisely enough, now wants to sell the royalty for a cash sum, knowing that he will not have many more years to receive income from oil runs. Again it Is a source of greAt sat. isfaetion to cheek oyer the accounts of members, as we do occasionally, to see how (hey are getting along on their investments. We find the "lucky" ones who seem to «take money no matter where they turn. We find others who have no luck at all...Then there are pome who plod along, making a good return on the investment, with sufficient reserv ed in (proven oil lands to insure them of a comfortable living for the rest of their lives. This third class, we find, are the ones who devote the most study to their in vestments. We recognize this type very quickly. That is another of the satis factions that our elally mail brings ns. Those who are alert te» the» changing picture in the oil Industry are the ones who profit nie»st. The alert one»s regard this organization as a clearing house for ideas. We» have hael a lot <>f clippings from members recently. Several called e»ur attention to the article* in Daviel Cushman Coy let's prize* essay on "The 1 American AVay" in Harper's Magazine*. Then another member sent us a clip ping from the Christian Science Monitor, answetring thé Coyle article. Still an other sent us clippings regnreling the pre> posal to tax fuel oil. Still another sent sent us a clipping from (he* Magazine of Wall Sfre*e*t. Much e>f this scorns vOy confusing. The nmn who read Coyle's article ae e*cpte*d the author's conclusion that an oil famine is at hand: that the "known reserves are* still only about enough to carry our pre*scnt rate of consumption in 1050." This man said: "I am resolved While the anti-oil forces are waving their hands and shouting about the shortage* of /oil, the American Petroleum Institute lias sueld<*nly left its ultra-con servative «position e»f past year, the au thor states that the* A. I*. I. "may be leaning to the optomlstic in its Interpre tation"—referring te» (he estimates of reserves developed in 1037. Says the au thor: "The IO;t7 results involved heavy elrilling operatie»ns, an increase of 30% ove*r the number of wells in 1030, and , the* secemd largest of receird. Substantially the* hulk of these neiw additions to the reserves continue to be marginal exten sions of presently known fields. There were no important new fields brought in. The article is very interesting and w<* suggest that our members read it care fully. It appeared In the issue of Feb. mary 20. a A bulletin containing highly # H confidential information regard ing our own affairs is in process of preparation and will go out to members immediately. The Mon tana oil industry is in a transition- || al situation that means the great- || est opi>ortnnities we have known since the early days of Cut Bank when, at the bottom of thç depres sion, vve bought royalties which brought quick return of prosperity to many of us. The opportunities of those days are over-shadowed by present opportunities, we be lieve. We are glad to explain the situation in detail to any who g wishes to join our organization and study current publications. 1 T Landowners Royalties Co . Box I 225 LANDOWNER'S ROYALTIES COMPANY Great Falls, Montana. I Without obligation please send me current publications of yonr organization. Membership $1. (Yonr Name In Fall) HEAD 0FF1C* GREAT FALLA. MONTANA i ■■.«.»■■■■«■it' .,1k. >,(ii The happy parents have the con gratulations at all on this suspi cious event." • • • • • "I'm goin to love, you until the cows come home!" "Okay, fresh, but meanwthile you don't have to pet the calv-es!" • • • • • The world-famous surgeon had successfully perlfo timed his spec tacular »operation, all ethics, the crowded clinic burst into applause. Thereupon the sur geon raised his hand for silence and, as an encoure, dexterously re moved the patient's appendix. Disregarding "What is the difference between a bathroom and a cemetery?" "There is no difference. When you gotta go—you gotta go." Miserable: "Did you ever wake up in the morning with a grouch?" Florabelle: "Heavens, no! I'm not married!" • • • The boss asked one of title sten ographers in the office, "What would you say if I hired you as i my private secretary?" And the coy little stenographer won't say anything replied. "I but 'Yes'." • • • "Hallo. Bridget. What time is it. and where's tlhe apple pie?" "It's eight sir." ! Thrifty Host; "And when will yon dine with us again? Ouest (still hungry): "Now, If you like." • • • • "Waiter, I've been sitting here drinking cocktails for three hours. Bring me something to sober me up." "Yes, sir. I have your check right here, sir." Sweet Young Thing; "Now what are we stopping for?" Operator: "I've lost my bear ings." Sweet Young Thing; "Well, at least you're original, most fellows run out of gae." "How's your wife's mental con dition since the psychiatrist has been treating her?" "She's better, but the psychiatrist went nuts." JOSEPH S, IRWIN PETROLEUM GEOLOGIST Ro x I at » CUT RANK, MONTANA Gleneoe Road, Calgary. Alb. A small boy was asked to write an essay In as few words as pos sible on two of life's greatest prob lems. He wrote; "Twins." • • • • • Dumb When someone asked Dora if she was ever troubled with improper thoughts, ehe said, "Why. no, I rather enjoy them." E. BYERS EMRICK CONSULTING GEOLOGIST OIL—NATURAL GAA K\nuiiua(ioiiu. Reports, Appraisal* Ksiimates of Reserves anti Canada I mied I {«»}* leisure rin*»»- ir»>* SîRÎen Office Phone 190 CONRAD MONTANA FREDRICK C. PLATT MIXING ENGINEER PETROLEUM Lease Management Geology. • MINING Kepiill Management MONTANA «OIKI.RV.