Pampa Daily News from Pampa, Texas on May 31, 1936 · Page 17
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Pampa Daily News from Pampa, Texas · Page 17

Pampa, Texas
Issue Date:
Sunday, May 31, 1936
Page 17
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SUNDAY MORNING, MAY 81, 1&86. THE PAMPA DAILY NEWS, Pampa, Texas PAGE THKEfi. KANSAS CONGRESSMAN SAYS IMPORTED OIL HURTING INDUSTRY ——— FLOOD VALUE OF BUSINESS TO SOUTHWEST TOLD IN FIGURES The following: article is from a speech by Clifford H. Hope, Congressman from Kansas, bearing on a question of vital import- ^ncc to the oil industry generally. Kansas is the fourth state of the union in the production of oil. Each year Its petroleum products contribute millions of dollars to the wealth of the nation. Each year Its petroleum industry gives employment to thousands of people whose consuming power helps keep the railroads and the factories of the country occupied. To give you an idea of the importance and value of the Kansas oil industry, let me cite the following figures: Fifty million dollars was paid for Kansas crude oil during the year 1935. Eight million and twenty-five thousand dollars was paid to the farmers arid landowners of Kansas 'for rentals and royalties during the same year which sum was more than half of the total amount of taxes levied on all the farms of Kansas. Two million eight hundred thousand dollars went to Kansas farmers as bonuses paid on oil leases. Three hundred and seventy-one million dollars has been invested by the oil Industry in production in Kansas. Sixty million nine hundred thousand dollars have been invested in oil pipe lines in Kansas. Five million five hundred and ninety thousand dollars has been invested by the oil industry in natural-gas gasoline plants in Kansas, Nineteen million seven hundred thousand dollars represent the expenditures in the producing division for noncapital purposes in ..Kansas for 1934, the last year for which such figures are available. This includes salaries, wages, and material which is consumed as it . Eight hundred and thirty-five * new wells were drilled in Kansas during -1934, and in addition to oil 46,909,000 cubic • feet of gas were produced in Kansas in 1934. In 1935 there were over 7,000 men directly engaged at full time in the production and refining end of the oil industry in Kansas. All that tiiese figures mean to the prosperity, the employment, consuming power, and the general welfare ol the nations is made possible by the fact that the oil industry in Kansas produced and had a fair market for its production of 54,787,000 barrels of crude oil during 1935. It just happens that for the same year this nation imported 54,811,048 barrels of foreign oil, counting not merely petroleum but the various products thereof translated into their petroleum equivalent. So in effect we have imported into this country during the past year the equivalent of another oil slate of the size and importance of Kansas. It was not necessary to import a single barrel of this oil. our own producers could have produced many times that amount had it not been for the restrictions which it was necessary to place on the industry in order to prevent overproduction and consequent price demoralization. The State of Kansas alone could have produced more than this additional 54,000,000 barrels of oil which we unnecessarily imported. In fact, during the month of February last, Kansas produced less than one- seventh of the capacity of its existing wells. The whole nation would object if we admitted as immigrants to this country the peons of Venezuela and Mexico who produce the foreign oil which dominates; in price at least, our domestic market. Wo would forcefully object to any legislative proposal which would take from American workers that employment and give it to those newly admitted immigrants who have been accustomed to work for a pittance a day. With millions of Americans unemployed, we would jecome justly indignant at any proposal to give well-paying jobs nnd positions to such a group of immigrants. We would be still nore resentful if we admitted these mmigrants with their low standards of living, permitted them to displace American workers, and .hen granted them an exemption "rom all taxes which are paid today, directly or indirectly, by the same number of citizens in Kansas. Have we gained anything by importing petroleum products equivalent to the production of another oil state of the size and importance of Kansas? Well, the importers brought this oil into the country for about $3,000,000 less than ;hey would have had to pay for the oil had it been produced in this country, so perhaps they received some benefits. But did the American people as a whole get any benefit from that $3,000,000? Hard! ly. Cheap foreign oil is not so cheap when it reaches the consumer, its cheapness lies in its ! low production cost. Very little of that low cost is passed on to the purchaser. Most of it goes to increase the profits of the importers. What does that .$3,000,000 in the pockets of the oil companies mean to the farmers, the landowners, and the workingmen of I this county who are directly or indirectly benefited by the oil industry? it'represents a loss of over $8,000,000 to farmers and landowners, it represents a possible loss of nearly $3,000.000 to them in bonuses. It mean;; unemployment for approximately 7,000 men thru- out a full year. It represents potential dividends, widely distributed, on over $400,000,000 worth of invested capital. After all, foreign oil is not really cheap. Actually its cost is high to the entire nation, as well as to the petroleum industry'. We are penny wise and pound foolish when for the slight saving of $3,000,000 we sacrifice several times that amount, besides multiplying unemployment and increasing the problems of one of our most important domestic Industries. No one is proposing today that we close the door entirely to these imports. -There is, however, before this Coungress a suggestion in the Disney import bill, H. R. 10483, that these importers be required to bear a portion of the tax burden which is today carried by every form of American industry. This proposal iiiyfjcsts that imported crude petroleum and fuel and gas oil shall pay an excise tax.of 1 cent a gallon instead of one-half cent now levied. This slight increase would still leave to foreign oil an advantage in production cost over domestic oil. It is further proposed in this measure that a tax of $2 per ton be levied on asphalt imported in this country. Foreign asphalt or asphalt made from imported asphal- tic oils is today taking half of our asphalt market and reaping the advantages and benefits which Congress intended should accrue to American industry and American labor through the appropriation of hundreds of million?; of dollars for road construction in this country. The same measure proposes not an embargo on foreign oil or foreign oil products, but a definite limitation to 4.5 per cent of the American consumptive demand. Certainly therde -is nothing unfair about this when all of our large TTttfrn tftr notfil lrntttstrintSst rent*, tn Wlirnlon, Illinois "' """ JUIES urnt ELBERT H. GARY T HE name of Judge Elbert H. Gary will always rank high in the roster of American business genius. His keen legal intelligence and financial acumen contributed greatly to the development of many important industrial corporations, so that in the public mind he became almost a symbol of big business. Born on his father's farm at Wheaton, 111., he was brought up for a legal career, studying at the office of an uncle and at Union College of Law, which has since become a part of the Northwestern University. Though he prac- tised law chiefly in Chicago, Gary maintained contact with his native town, in which he served two terms as Mayor. One of his earlier business projects was the establishment of the Gary- Wheaton Bank, of which he be•came the President. At the age of thirty-six he was elected a judge in DuPage County. By the time he entered his forties he had become an authority on corporation law and active in numerous corporate business enterprises and railroads, quickly expanding his wealth. Gary might almost be called the father of modern business mergers. His first lavge effort in this direction was in combining the steel and wire industries. He formed the Federal Steel Company, and was an important factor in the organization of the United States Steel Corporation with a capital stock of one billion dollars—the largest in the world at that time. The great American steel center, Gary, Indiana, is named after Judge Gary. Under his guidance what was a wasteland was developed into an important industrial center. Judge Gary's cool foresight is aptly indicated by the fact that the stately mausoleum shown in the sketch above was built in his own lifetime. Instead of leaving his final resting place as a task for his family, he planned it carefully himself. "Every man," he is reported to have told the memorial builders, "should prepare for death, just as he prepares for every business deal. So I .want you to build a mausoleum for me in Wheaton. When the time comes, I wish to rest amid the scenes of my boyhood." The time came in 1927 and Judge Gary's body now rests in Wheaton as he wished, in the mausoleum constructed when he was still alive. (Coprrlghtcd by Memorial Extension Commission.) oil producing states have placed imitation upon the domestic pro- duction of and the Federal government is cooperating by pre- venting the transportation in interstate commerce of oil produced in violation of state laws or regulations. It is therefore entirely logical and in harmony with our domestic policy to place a limitation upon imports. In fact, there are many people who feel that as long as domestic production must be cut down so drastically that imports should be shut out altogether. We are not asking for an embargo, however. We are merely asking that sufficient restrictions be placed on imports as will enable the domestic petroleum industry to more successfully advance its program of a balance between supply and demand. In other words, that American capital, Americal labor, and American landowners be given a fair chance to bring about the benefits which would accrue to this country by the addition of the oil production of another Kansas, Seaplane Harbor Along English Coast Planned PORTMOUTH. England, f/P)—A scheme of a $7,500,000 base for overseas flying boat service, includ- ng the proposed air. mail service to the United States, has been drawn up. Lang.stone harbor, under a provisional plan arranged among representatives of the air ministry, im- 3erial airways and local authorities, would be converted into a land ocked sheet of water. Smooth Water Assured A deep-water, smooth-surfaced irca of some 1,000 acres would be obtained under the scheme by con- tructlng breakwaters at the har- lor's three outlets to the sea— Hayling Island, Havant and Portsmouth. Adjacent to this would be air- Iromes for overland air services to ionnect with the overseas services. If the scheme is confirmed, work vill be begun quickly in order to mve the harbor ready for the start if the experimental flights this sum- ner across the Atlantic. Flying- Boats Built Two flying boats, one a long-range raft designed to cross the Atlantic under Its own power and the other a composite seaplane - launching 3lane innovation, by which the fully- oadcd seaplane will be launched in nid-air from its "mother ship", are learing completion for these flights. In addition, empire overseas serv- ces with a fleet of 20 flying boats low under construction are sched- GERMANY PLANS REGULAR AIR ROUTE ON NORTH ATLANTIC AS RACE FOR COMMERCE DEVELOPS BERLIN, May 30. Iff}— Germanj is moving fast to make the firs' bid for a regular North Atlantic airplane service. Trial flights to Charleston, S. C. via the Azores and Bermuda are scheduled for late summer. The airplane service will parallel that of the luxury airliner "Hindenburg,' which brings the old and new worlds within two and a half clay." of each other. Germany's two air lines, official' say, are not to be run as competitors but are to supplement each other Both the airship and airplane services will be merely extensions of 3erman lines now in operation be- iwecn Germany and South America The airplane line will make a stop at a catapult ship midway between the Azores and Bermuda. That will nake three stops between Frank- 'ort-on-Main and Charleston. At some of these halts, cargo will )e trans-shipped to fresh planes ^rom Charleston to points within he United States cargo will be handled by American air lines. American Alliance Formed The German Luf-Hansa has made agreements with the Pan-American Airways for cooperation in any services which may be organized by ithcr company between Germany ind the United States. German experts say that flying auditions are best between the wentieth and fortieth latitude par- llels. That is why they favor the iZores-Bcrmuda route. They also believe that the ocean passage is possible only by using catapult station ships. Long nonstop flights, they say, arc not yet safe enough for regular commercial routes. Station Ship Made Ilcady The catapult ship "Schwabenland" which has been along the African coast in the service of the South Atlantic route, is being overhauled and will be sent to position between the. Azores and Bermuda. A new 2,000-ton catapult ship, the "Ostmark" has been sent to the African coast to replace the "Schwabenland." The German flying boats are much smaller than those operated by the Pan-American Airways. The German ones are under 15 tons. The uled to start operation early in 1937. Pending the results of the experimental translantic flights, no final decision has been reached whether this' service will employ a base in the Irish Free State. catapult ships cannot handle boats bigger than that and they get along better when the planes are no heav- ' ier than 10 tons. Looking at the French, British and Americans, all of whom are contemplating sea lines, the Germans say that much travel must be regu- • lated by common accord among these countries so as to eliminate deadly competition. Goodyear Makes '. 250,000,000th Tire AKRON, May 30—Beaching a. > production milestone unequalled In the rubber industry, completion of 250.000,000 tires was announced by • the Goodyear Tire & Rubber company recently. As the company entered into pro- . dnotion of its second quarter-billion '• tires, first casing to come out of •• the molds was an All-Traction tractor tire, a type which, although announced but a few months ago, has already gained wide approval. .; In view of Goodyear's pioneering " work on pneumatic tires for farm.. • use. Goodyear officials regarded it as ' particularly fitting that the first A tire in the second quarter-billion ., should be designed for use on the ~ farm. <. Interesting statistics In connec- .- tion with production of 250,000,000 ••• tires were given by Goodyear erv- ;ineers. The tires, if stacked one on top of the other, would reach ' a height of 17,750 miles. It laid side ; :o side, they would encircle the ; globe four and one-half times, or .. nearly one-half the distance to • the moon. Converted into tire milage the ' 250,000,000 tires would equal 3,000,- . 000,000,000 miles, or more than i mough for 60,000 round trips to the < noon. It a single motorist, averag- ' ng 10,000 miles a year, tried to : wear out this enormous production, , t would take 75,000,000 years. • i Construction of the tires con- • sumcd approximately 1^200,000,000 rounds, or 2,400,000 bales, of cotton, \ nd approximately 2,750,000,000 ; jounds of rubber. At the present rate of rubber production, this would amount to the world's supply for a '. ear and a half. Placed in box , 3ars the tires would make up a rain that would stretch more than rwo-fifths the distance across the • United States. m The Habit ®! the Texas Panfaasidle and Texans Since th'e clays of those early pioneers, West Texans have been people of sustained courage and energy! Always moving ahead—always progressive in their undertakings. . . Never letting dowin to hardships and discouragements. The Texas Panhandle TODAY presents a real picture of business and industrial accomplishment. Beautiful cities. . . busy highways. . . active industry, all are the results of the initiative, the vision and effort of Panhandle business men. We are happy on this occasion, the Texas Panhandle Centennial Celebration and Oil Men's Reunion, to extend our greetings to you, and pay tribute to .the wonderful accomplishments you have made during the past years. . . As one .West Texan to another. . . let us wish you an endless s'core of years to come, full of Progress and Achievement. . . , tfj\f -il. , Phillips Phillips Petroleum Company "There's A "66" Station Near, To Serve Yon" Phillip

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