GIGANTIC RACKET

Poverty Bay Herald, Volume LIX, Issue 17919, 25 October 1932, Page 2

GIGANTIC RACKET

OKLAHOMA OIL THEFTS DISCOVERED BY TROOPS OKLAHOMA CITY, .So])!. Ifl. A gigantic racket, undermining the market structure of the nation’s second ranking industry, is being brought to light in the mid-continent oil fields, folloAving military control of the fields. For months tho oil fraternity lias heard rumors of huge diversion of crude petroleum into illicit channels. There it filters through into the retail trade where, as a distress product, it demoralises tho market. Many considered the reports incredible. Oil leaders warned of the consequences of oil thefts. Because of peculiar political and disputed legal situations, state governments moved slowly. To-night some of the rumors had been written into the records of the corporation commission. Evidence has been presented showing that vast frauds were committed. Col. Cicero I. Murray, Oklahoma City field’s military supervisor, has presented evidence lo the corporation commission showing that more than 2,000,000 barrels of oil Avere produced illegally this year. Troops dug iq) secret connections, closed wells and discovered elaborate contraband equipment. “These violators,” Col. Murraycharged, “run a small percentage to regular tanks, hut the largo amount is run through secret connections. They defraud royalty owners, the state, and rob their neighbors drawing oil from a common pool. This practice we propose to eliminate no matter avlioso toes we tread upon.” Attorneys for alleged offending companies frankly admitted irregular methods. “Yes, 1 knew of a secret connection on our well,” S. M. Stauffer admitted before the commission. “It’s there ready to use in case we have to flowoil to protect our interests. Oil thefts are so general it has become* a gigantic racket.” The Governor, Mr. W. 11. (Alfalfa Bill) Murray, hurried home to-day from a political speaking tour of North-west Oklahoma to take charge of the military enforcement. SAVeeping aside courts and civil authorities, Mr. Murray shouldered full responsibility for the Avar to stamp out the practice. Not until the legislature passes stringent oil laws, recommended by the chairman of tlio commission, Avill he relinquish military control over 3000 Oklahoma oil wells, he said.