Hammond Times, Volume 13, Number 33, Hammond, Lake County, 19 July 1918 — Page 3

Frid.iv, July 19. 1918.

THE TIMES. Page Three CAPITAL 20,000,000 DOLLARS ANY

REFINING

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Studebaker Building, South Bend, Indiana The Stubebaber Bros, and associates now producing Oil on a large scale to have Distributing Stations in all cities of the United States, known as the STUDEBAKER OIL & REFINING COMPANY, Studebaker Building, South Bend, Indiana. The shares of this new enterprise insure the highest degree of safety and the maximum of profit. TO THE GENERAL PUBLIC: After delving deeply into the oil and refining business we havcconcludcd that no other legitimate industry requires more careful attention if it is to be a financial success. We would not permit our names to be used nor advise our friends to join us in this Company, as we have done, unless we had fully completed our investigations and had obtained control of actual producing oil properties. We therefore recom- CLEM IV. STUDEBAKER mend these shares not only to the automobile manufacturers, distributors and own- P. E. STUDEBAKER crs, but to the general public as well. Sincerely, A. H. STUDEBAKER

Officers and Directors A. H. STUDEBAKER, President. D. E. ACOSTA. Vice Pres. C. W. STUDEBAKER, Chairman. A. H. STUDEBAKER. Treasurer. P. E. STUDEBAKER, Vice Pres. VICTOR M. COOK. Secretary. C. M. SARBER, Vies Pres. L. K. DAVIS, Gen. Field Supervisor. A. Q. GRAHAM, General Counsel.

Purpose

THE STUDEBAKER OIL, AND REFINING COMPANY is a combination of oil and refining interests in Oklahoma, Kansas. Kentucky and Texas. It la an operating and a holding company, and will shortly be a complete unit in the oil Industry, namely producing oil from its own wells, transporting It In its own tank cars, refining it In its own refineries, and marketing the resultant products through Its own distributing branches. The Company will become a huge factor In the oil industry by purchasing developed oil properties and going refineries as fast as is consistent with good business Judgment in every developed oil territory of importance. No wild catting nor prospecting for oil will be done by THE STUDEBAKER OIL AND REFINING COMPANY. Direction of the Business The direction and control of the Company's affairs if in the hands f well-known and successful business men and oil operators. They are working with one purpose only to place this Company on a sound dividend paying basis at an early date. Great care is being exercised in selecting "experienced oil operators to superintend the producing properties, and to place experts In Charge of the refineries. No property will be allowed to deteriorate, and ample plans will be made for the expansion of each refinery. Assets 1,800,000 Dollars THE STUDEBAKER OIL AND REFINING COMPANY has purchased the Cushing Klver-bed property, which is in the heart of The Cushing, Oklahoma district, consisting of 80 acres and 13 producing wells. This territory produces the highest grade oil and the largest rolume of any pool in the Mid-Continent field. In connection with this valuable production the Company has acquired 720 acres in the adjoining, lucrative Yale-Quay field, which is regarded as proven oil property. The Company has also purchased the well-known Baker property In the Irvine field. Kentucky, which adjoins the famous A3hley lease of P. J. White, of New York, reported to be worth over $4,000,000.00. This property consists of 106 acres, and 14 producing wells, with more drilling. In addition to the producing properties purchased, this Company has under consideration other valuable producing properties and refln eries located in Oklahoma, Kansas and Kentucky, valued at nearly $8,000,000.00, being 353 additional wells, making about 129,;S0 barrels per month, with a large undrilled. proven acreage, and three splendid refineries. These properties are located in the Cushing, Bird Creek, Dartlesville, Healdton and Glen Pool districts, Oklahoma, the Eldorado end Towanda pools in Kansas, and in three proven fields in Kentucky. The Company expects to take these properties over from time to tima along with other additional holdings. Earnings 500,000 Annually The Cushing River-bed property is now earning about $283,000.00 per year, which is approximately 52 on the Investment. Anticipated expansion on this property will probably double these earnings. Estimated earnings for the Baker, Kentucky, property are about 1S5.000.00, or a sufficient amount to pay about 94 on the investment per annum. The management plans to double the oil production from this property within one year. All of tha producing properties now held under consideration by this Company should pay ont on the investment within two to three years. The refineries are making from 50 to 200 on the investments. A small allotment of these shares have been authorized for distribution at $1.00. which are being rapidly taken and we anticipate a sharp rise In price for the next allotment. Earning: a Double Profit With the taking over of its refineries, now under option, the Company will be earning a double profit from the production of oil and refining both of which will bring rich returns. If other refineries earn from 100 to 30, after purchasing their crude oil, what must our profits be when we produce our own oil? F. O. Stone, of the office of State Inspector of Oils at Topeka, Kansas, says: "All refineries in Kansas are making big roflts. No banking business in the State brings such results as the Refinery business, and I only wish I owned in part or had a good block of stock in a Kansas refinery, as I consider it gilt edge. "My duties as Deputy State Inspector require me to visit different refinerler, therefore. I Judge that I am in a position to gain intimate knowledge of their results and earnings."

Options field on Producing Properties by Studebaker Oil & Refining Company The following producing properties have been secured under option by the Studebaker OH and Refining Company on most favorable terms to the Corporation; in fact, on terms that on existing production show better than 40 on tho investment: 1. Production in the Glen Tool field. Okla., 6042 acres, 39 producing wells, making 30,000 barrels per month. This property is now earning more than $60,000 per month, and will pay out on the purchase price in two years. A casinshead gasoline plant Is now being erected which will considerably increase ihe profits. 2. Production in the Bird Creek field, Okla., 1600 acres, 139 welle. monthly net. production 11.100 barrels. Property earning about $299,700 per year. 3. Production in the Cushing field, Okla , 820 acres, 6 wells, production about 11,250 barrels per month. Property earning $303,744 annually. 4. Production In the Healdton field. Okla.. 120 acres. 34 wells, monthly production 22,0S barrels. Property earning about $354,25?. 5. Production in the Butler County, Kansas, field, 160 acres, 18 wells, production 33.000 barrels per month. Yearly Income from oil sales $891,000 approximately. Refineries held under option by the Studebaker Oil & Refining Company The Corporation plans to take over the following refineries at an early date, notice of which will be made public shortly thereafter: Refinery. Butler County, Kansas. Present capacity 2500 barrels per day. Capacity can be easily increased to 5000 barrels. This the Company plans to do, as the enormous production of this field warrants such a capacity. Refinery Is fu'ly pquipped with modern machinery and pipe line 35 new tank cars now operating on large earning basis. Refinery. Near Butler County field. Fully equipped with 22 steel tank cars pipe lice system; 20 filling stations. CapRCity 100 barrels dally. Now on substantial earning basis. Refinery Irving field, Kentucky. Fifteen miles pipe line 25 tank cars. New construction. Capacity 1000 barrels daily. The total capacity of the above refineries will be, after addition to the Butler County plant, from 7500 to 7S00 barrels per day. It must be understood that the Studebaker Oil and Refining Company Is to be engaged principally in the Refining of oil and is engaging in production mainly with the view of supplying it 3 refineries' needs. To this end the Company is acquiring production rapidly and intends taking over the above refineries with their complete equipment as soon a? they have production to an amount now agreed upon. Testimony on Oil and Refining Profits When Oil Was Worth Less Than 40 Cents Per Barrel The following quotation Is copied from the Congressional Record, at the hearing before the Committee on Public Lands, January 7th to 22nd, 1315, the Oil Land Leasing Bill being under consideration. (1915 H. R. 1613(5, page 118.) Mr. Oliver "This chart represents 75,000,000 barrels of oil taken o'lt of one property in Oklahoma which is the crude oil; a leasor, the person who owned the land, received $5,450,000 nn for the oil; the sublessor, who was the broker, received $.',400,000 and the Company who developed the lease, that is, drilled for oil, received $12,700,000 and the pipe line company who bought the oil and refined it received the sum of $S5,250,000." Senator Clark "Do you mean by that net profits?" Mr. Oliver "That Is the net profits; yes, sir." Senator Clark "On 75,000,000 barrels of oil?" Mr. Oliver "That is a fact. sir. as herein stated."' Senator Clark "$107,000,000 net profits?" Mr. Oliver "Yes, sir. I will show you Just how that is brouzht about. Now understand on that particular production there is the net profit to the owner of the land, the sub-leasor, the company whp developed the land, and the company who refined the oil and sold it at wholesale." 8enator Clark "Now are you speaking of net profits or proceeds?" Mr. Oliver "I am speaking of net profits." Senator Clark "I cannot reconcile these figures with my own notion of what oil is worth today." Mr. Oliver "That In what I am here to call your attention to. I think most people of this country do not understand the real situation because it has never before been brought to the surface." NOTE: Oil is now worth six times more than at the time of the above Congressional Hearing and is still climbing.

An Estimate of Oil Refining Output and Earnings Based Upon Composite Estimate of Production Elsewhere PERCENTAGE OF PROFITS. In the refining of crude petroleum the still operator may greatly Increaae or diminish the percentage of any one given material by sasrlflcing quality or quantity, or both, of other products. The extent to which such manipulation may be extended is so wide that it is imposaible to give any table of percentage of products that would govern under the output of any particular still; but. the refiner may regulate the distilling process to produce a maximum or minimum percentage of any of the articles herein enumerated, and the percentage table following is given in order to transmit an approximate Idea of the run of an average still. REFINING PRODUCT3 (Baals of 2500 Barrtls). Gasoline, 30, 31.500 gallons at 22c $ 6,930 Kerosenes, 35, 36.750 gallons at 8c J .....Z. 2940 Lubricating oil, 20, 21,000 gallons at 17c s!e70 By-prcducts, 127c, 12,500 gallons at 24c... 3,024 Total production refined products per day $16,464 COST OF OPERATING PLANT. 2.500 barrels of crude oil at $2.05 $6,625 Fourteen skilled laborers, including superintendents, at $7 ' 9 Administration expenses 75 Selling expenses i,rt Advertising, etc 25 Twenty common laborers at $3 60 Ten Teamsters 70 Telegraph and telephone 15 Fuel ino Repairing .'. 50 Transportation Crude Oil 4rHi Loss by shrinkage 75 Total daily expenses $7,743 Leaving a balance of $8,721 per day, $3,139,560 per year, or over 2S5 on refining; equal to 15.70 from only one refining plant on our entire capitalization. NOTE: 1917 Profits nf Midwest Refining are reported at $18,000,000. Oil refined, 15,000,000 barrels. We plan to operate refineries having capacity of 7500 barrels per day. Refining Operations The BIG end, the SAFE end, the SURE end of the oil industry la the business of refining. The crude oil as it came from the wells of Wyoming in 1917 was valued in round numbers at $1 4.000, 00' This same oil. after it was passed through the refineries, was marketed in the form of gasoline, kerosene, lubricating oils, greases, and other products, worth more than $48,000,000. Thus the refineries had added $34,000,000 to Its value and the greater part of this amount was refinery profit. Equipment $350,000 Value The valuation of the equipment alone on the Cushing River-bed property is placed at $300,000.00 and about $50,000 has been spent on the Baker property. Each producing lease and each refinery under consideration is fully equipped and is making money. The Company will not be required to put additional money into these properties at present, with the exception of adding several hundred new tank cars. New York Curb The management is making application to list the securities of The Studebaker Oil and Refining Company on the New York Curb. This will afford every stockholder a steady value and a ready sale for these share?.

nols Blue Sky Permit

Serial No. 516. These securities have been approved by the Department of State of Illinois. The Secretary of State does not recommend the purchase of any security offered for sale.

Subscriptions

Now is the time to get in right in the oil Industry. Prices are higher than for fifty ears back. The established oil companies are making more money today than ever before. A real scarcity of oil exists, and production no longer equals consumption. Those people who were fortunate enough to take the securities of any one of the large aggregations of capital among the successful companies have accumulated an independent fortune. Act now. These shares will shortly be higher.

Send in your subscription toda?

How to buy this stock upon our liberal Installment plan: Fill In and clip out this subscription blank and send together with your check or money order for one-fifth the number of shares desired, payable to First National Bank, Hammond, Ind.

IN CASE THIS APPLICATION IS NOT ACCEPTED, AMOUNT PAID WILL BE RTURNED.

No-

Application for Stock of STUDEBAKER OIL AND REFINING COMPANY Offices: South Bend, Indiana.

....of

hereby apply for shares of Capital Stock of STUDEBAKER OIL AND REFINING COMPANY, fully paid and non-assessable, and agree to pay the sum of One Dollar $1.00) per share. This application i3 given with the understanding that no representations, conditions or agreements other than those expressed herein shall be binding on this Company. In one fifth payment for same, I enclose remittance of $ I will pay the remaining four-fifths in equal monthly installments. When full amount is paid, send stock certificate to name and address given below, v Full Name - -

Address..

Dated and signed this

day of..

.191.

Local Depository: First National Bank Hammond, Indiana

How to buy this stock upon our cash payment plan: Fill In and clip out this subscription blank for number of shares desired and send together with your check or post money order, payable to First National Bank, Hammond, Ind. j

Nc.

IN CASE THIS APPLICATION IS NOT ACCEPTED, AMOUNT PAID WILL BE RETURNED. Application for Stock of STUDEBAKER OIL AND REFINING COMPANY Offices: South Bend, Indiana.

at

hereby apply for..

..shares of Capital Stock of STUREBAKER OIL AND RE

FINING COMPANY, fully paid and non-assessable, and agree to pay the sum of One ($1.00) Dollar per share. This application is given with the understanding that no representations, conditions or agreement other than those expressed herein shall be binding on this Company.

Dated and signed this day of 191.... Witness

Applicant .. Address

L. F. KENNY, Special Representative, Mee Hotel, Hammond.

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